In a new Industry Outlook research note, Cowen and Company concludes Infor is "reemerging as a compelling alternative to the Oracle/SAP duopoly."
"We recently spent time with Infor, an almost $3B ERP company that we believe is poised to reemerge as a legitimate third option to the SAP/Oracle Apps duopoly. … Over the last two years, the normally low-profile company has been even quieter than usual, as it has capitalized on the advantage of being privately held to:
1) Rewrite virtually its entire suite of apps and infrastructure software,
2) Make massive investments in its UI to materially close the gap between enterprise and consumer software usability,
3) Introduce new products like Ming.le to insert content into process flows, and
4) Turn over 75% of its sales force to improve its go to market capabilities.
"In our view, these radical changes are helping Infor improve maintenance renewal rates, but more importantly, win net new customers.
"Built to Coexist, but Win New Business From Oracle and SAP. Exiting this transition period, Infor is going to market focusing on companies in the $100M to $5B range with three competitive advantages, in our view:
1) Lower cost horizontal functionality,
2) Unique micro-vertical functionality to establish a beachhead in under-served sectors, and
3) A quantum leap in usability changes that offer enterprise functionality with a consumer UI.
"… we do expect the company to win new business in the SAP and Oracle installed base. … Infor's focus on traditional financial and manufacturing apps represents yet another smaller competitor going after the lumbering behemoths that are increasingly antagonizing their installed base with audits and onerous maintenance contracts.
"We believe Infor is coming to market with the right product at exactly the right time."