• June 28, 2010
  • By Koa BeckEditorial Assistant, CRM magazine

Consona Collects Compiere to Compete in the Cloud

Cloud-based consolidation commenced in earnest this month, when Consona, a leading provider of CRM and enterprise resource planning (ERP) software, announced the acquisition of on-demand ERP vendor Compiere for an undisclosed sum. The addition of Compiere's cloud-reference architecture is intended to elevate Consona's competitive stance in the world of cloud computing, according to executives of the two companies.

Compiere's architecture runs on an open-source stack, such as Java, Linux, JBoss, or PostgreSQL, and with a browser based on Google Web Toolkit. Its multitenant architecture runs on Amazon.com's Amazon Web Services and is considered flexible enough to allow automatic upgrades without retrofitting customizations. The company's open-source purity had been questioned in the past, due to a former reliance on Oracle's database systems; the latest iterations of Compiere's offerings now allow for the use of other databases.

Describing Compiere's platform as "the most state-of-the-art one that we've seen out there," Jeff Tognoni, Consona's chief executive officer, said the acquisition provides 120 percent of what we envisioned [for Consona]."

The deal, Tognoni added, precisely fits his vision for Consona's future: A move into cloud computing, he noted, has long been in the works for Consona, which primarily offers enterprise software for on-premises use.

"Our view is that [Compiere] is the leading open-source ERP firm in the world ," Tognoni said . "This acquisition is more [about] throw[ing] the ball down the field a little bit and try[ing] to take a leadership position in a developing market for cloud-based ERP."

Ray Wang, research analyst for enterprise strategy at Altimeter Group, says that Consona is "betting on the cloud and doesn't want to be dependent on any other vendor for its architecture. It wants the open-source approach." The software-as-a-service (SaaS) delivery model, he adds, simply became too compelling. "[The] hosting capabilities mean they [will now] have on-demand. They see that they must move to SaaS and this is one step toward completing the goal."

China Martens, senior analyst of enterprise software at The 451 Group, agrees. "Consona's primary interest in Compiere is in its underlying architecture," Martens says. She also notes, however, that Consona's interests extend to the paid version of Compiere's distribution ERP.

The deal may not pan out for everyone, Martens says. "There's been no mention of CRM or of Consona's long-term plans for Compiere's free Community Edition," she warns. "At the same time, Consona runs its own ERP and CRM businesses as mostly separate operations, so that tends to mean its ERP customers may make use of CRM functionality if it's included in the Consona ERP products they use."

In an interview with CRM magazine and destinationCRM,  Tognoni confirms that Consona will continue to develop and produce Compiere products as well as provide on-premises systems. "We're going to continue…to move our on-premises [offerings] forward," he says. "We're not moving the entire company. We're still very much selling all our on-premises products. Our strategy doesn't really change with respect to those products."  

On the Web: Consona Press Release: Consona Corporation Acquires Open-Source and Cloud ERP Software Provider Compiere Inc.

News relevant to the customer relationship management industry is posted several times a day on destinationCRM.com, in addition to the news section Insight that appears every month in the pages of CRM magazine.

You may leave a public comment regarding this article by clicking on "Comments" below.

CRM Covers
Free
for qualified subscribers
Subscribe Now Current Issue Past Issues

Related Articles

Consona Sizes Up the Manufacturing Market

The software vendor's ERP unit unveils both a product upgrade and a technology alliance aimed at bolstering its presence among SMB manufacturers.

A Million Handshakes for Onyx and Knova

Consona releases new versions of its acquired CRM and knowledge management properties, and adds some marketing automation from Norway.

Consona Rebrands and Integrates

Consona Connect '08: Say goodbye to the names Knova and Onyx -- the two are joining forces under Consona CRM.

The 2009 CRM Service Awards: Service Leaders -- Web Self-Service

Consona Acquires SupportSoft's Enterprise Software Group

The deal -- valued at $20 million -- looks to help Consona extend its reach into target markets.

After Swallowing SupportSoft, Consona Conveys Renewed Roadmap

CRM player plans to integrate proactive service offerings and to focus on point solutions.

The 2010 CRM Service Awards: Service Leaders -- Contact Center Search

XTuple Expands to the Cloud

The open-source upstart announces cloud-based services and three new editions of its flagship product.