Software as a service set for process growth

CDC, the US and Hong Kong-based software conglomerate that earlier this year bought hosted shop floor planning software firm JRG Software, is having a second go at acquiring CRM software company Onyx. The company says it intends to be in the $500m league by 2007 from its current $200m, and that it will do so through acquisition. CDC already owns process industry ERP firm Ross Systems, CRM company Pivotal, supply chain optimisation IT developer IMI and offshore IT services group Horizon in New York and Bangalore, India. Says CDC UK managing director Mark Carlile: “Onyx will add $65m to our revenue stream.” And for him, CRM will be one of the main drivers of CDC’s growth aspirations. But so will supply chain systems, warehouse systems and in particular offshore IT development for companies. “Look at the market: there’s a strong move away from perpetual licensing, so we’ll use JRG and its OnePlan scheduling software as a service product to penetrate our own customer base, but also to attack other ERP companies.” And with names like Weetabix, Alpen and Pilkington as existing users, he’s not merely bragging. But Carlile doesn’t intend to stop there: “We see this becoming big in new markets like supply chain: we need to do due diligence on this but that market has changed and we need to develop a price point and a model for clients.” He paints a picture of new dynamism at CDC that’s spilling over into Ross and IMI. Carlile talks of “deepening” its systems, getting them closer to plant operations with, for example, better barcode and RFID functionality for real time integration and improved manufacturing execution. Similarly, the IMI side of the business is working on broadening Ross’ iRenaissance ERP with more warehouse automation functionality. “For the last 18 months we’ve been integrating warehouse management as an option with iRenaissance to get our inventory optimisation as sophisticated as our manufacturing functionality.” Looks like users in Ross food, beverage and pharmaceutical industry specialisations are in for some useful offerings.