TABLE 1: Segmenting the Accounting Software Market
Characteristic SOHO Workgroup Corporate Enterprise
Customers
Annual revenue <$1 million $1-50 million $50-$500 million $500 million+
Number of users Single user 2-25 25-250 >250
Remote users No No Yes Yes
Transaction volume/month <500 500-5000 5000-50,000 >50,000
Sites/location Single/domestic Single/domestic Multi/international Multi/international
Applications
Price per module <$1000/system $1000-5000/module $5000-$50,000/module >$50,000/module
Typical 5-module system cost <$1000 <$25,000 <$250,000 >$250,000
Typical implementation cost n/a $1-2/ $ of software cost $2-$3/$ of software cost >$3/$ of software cost
Typical implementation time Days Weeks Months Years
Distribution Retail/mail order Retail/VAR VAR/direct Direct only
Technology
Server operating platforms MS-DOS/MacOS Novell NetWare/MS NT Server/SCO UNIX AS/400/MS NT Server/ UNIX AS/400/Mainframe/ UNIX
Database Btrieve/MS Jet/ISAM Btrieve/MS Jet/MS SQL Server/Centura SQLBase/Cobol ISAM RDBMS (Oracle, Sybase, Informix, IBM)/Cobol or C ISAM/IBM OS/400 RDBMS (Oracle, Sybase, Informix, IBM)/Cobol or C ISAM/IBM OS/400
Database size <1MB <100MB <1GB >1GB
User interface MS Windows/MacOS MS Windows/MacOS MS Windows/OSF Motif/Character MS Windows/OSF Motif/Character
Implementation resource Independent consultant Independent consultant/ VAR/vendor CPA firm/VAR/vendor Big 6 firm/systems integrator/vendor
Functionality
Financials * * * *
Consolidation reporting * *
Distribution/supply chain * * *
Manufacturing *
Payroll * * * *
Human resources * *
Multicurrency * *
Multilingual * *
Allocations * *
Inter company * *
Treasury management * *
EDI *