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Future of the Macola Product Line ?

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NEmacGuy

Instructor
Sep 1, 2004
420
US
Has everyone been paying attention to the recent webinars lately.
 
What did you see? Did you attend the webinar on Tuesday?

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

"What version of URGENT!!! are you using?
 
I was looking to gather others opinion before I shared my thought, as I did not want to taint anyone's idea's. Well looks like maybe everyone has been too busy with Year End and all, so here goes my short synopsis:

Exact has been announcing, that they are going to be change their Product Line Up. Basically they will not be investing in Progression and MacolaES into the future. Their future product is Globe. Existing customer will be able to move into Globe as a product for their maintenance cost, much like MacolaES. They is a target date for a conversion utility for Progression to Globe within a few months and they are working on MacolaES but no defined date as of the webinar.

They did stress that they will continue to support, and provide bug fixes and technology updates for Progression and MacolaES; but their real investment will only be in Globe.

This is my take. I would encourage others to review their webinar. I beleive they said that they would post it in the Virtual users site shortly.
 
As I understand it, the phone lines at Exact lit up after the webinar with questions like:

If only 16% of the Progression user base upgraded to Macola ES why would you expect a mass upgrade to Globe?

If Exact is only offering an upgrade for master files to Globe why wouldn’t Customers also look at Brand X?

If your plan is to only invest in Globe for the product development why don’t you just carry on and make Globe great?

Where is it written that software companies have to tell you that they are killing product off?

I don't hear that INFOR or Sage is killing of 1/2 of their product offerings, do you?

Why bother happy maintenance paying customer?

Why not make Globe so great that customers beg for an upgrade?

In a down economy why force customers to make irrational decisions?

What happen to product evolution?

Why force product creationism?

I suspect the product will be around longer, as Globe at present does not measure up to Progression or ES in a number of areas.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

"What version of URGENT!!! are you using?
 
Dgillz and Maccrystal,
I was interested in the responce as well. I wonder what Nashville will be like this year. New Exact leadership faced with a tough sell. I remember a post where the product dirrection was discussed last year around matintance time. Well I thought at engage PJ did a good job laying out the future product direction of the Macola line. Now no PJ, no Macola.
I actually beleive that their overall strategy is probably the only way they can survive in the long term. I give Exact credit for exposing to the customer base their long term plans. There is risk that a number of good standing customers may make a choice not to stay in the camp. I am not sure if Exact can afford to keep the Progression, Macola ES (1/2 Progression + 1/2 Globe), and Globe all going.
There are some that beleive that long term, ERP is headed in the same dirrection as many other industries, consolidation down to perhaps the top 3 or 4. No doubt there will be alot of pain in the consolidation. If you are a player in the market, you better be one of the top 3 or 4, bought by a top 3, or in a niche. I think JobBoss is one of Exact niche products, and in the top 3 of job shop packages.
I agree with DGillz, I think the product will be around longer than some expect. It just plan works.
The only big issue, would you spend the money to buy a new system that requres a significate investment knowing that the company behind the product is moving on. You have to have new $$$ in the pool to keep a product going. When the $$$ go away, the product will follow. Not only does this apply for new product, but also thoose looking to upgrade. They are telling you the $$$ they have are going to go to Globe, so you should too.
I personally would look at Globe, the cost to moving to Globe -vs- brand X, and think about the longterm viabilty of the product in the market. I might do it, and if your are already in their family, Exact is making the upgrade a part of your maintence cost.

Sorry about being long winded tonight!
Long Live Macola!
 
dgillz,
Found the following interesting :

"I don't hear that INFOR or Sage is killing of 1/2 of their product offerings, do you?"

I would be currious to see what type of retention rate their has been when other guys that have killed off products. On the top of my head, I would think of Great Plains killing the Realworld product after they purchased them.
The next one that came to mind was Solomon, which was destined for death, yet lives on til this day.
 
NEmacGuy,

Sage has a slew of products like this. The ACCPAC/SBT merge was already in progress when Sage bought them out, but otherwise they have several brand names without thoughts of pushing everyone into a one-size-fits-all solution.

Likewise Microsoft has kept the Solomon, Great Plains and Navision product lines separate.

My prediction: If Exact pushes ahead with this, they will get an abysmally low number of Globe adopters - like 5% or less. Then the remaining, maintenance paying user base will largely stop paying maintenance. Finally, when the choice is upgrade to Globe or die, they will look at all their options and many will settle for greener pastures.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

"What version of URGENT!!! are you using?
 
Well I guess I should pull up my socks and stand up for the User/Customer community. I have been watching this issue and have communicated my opinions to the President of our company. So I will share some of that here.

Just a little background so my opinions make some sense with respect to our use of the product.

1. We really are a pure distribution “supply chain” company.
2. We have experienced some pain with respect to the limited functionality in the Macola ES implementation of “Advanced Distribution” tools.
3. My career has included experience with six ERP applications and a couple custom built systems. So I do understand product life cycle and evolution of the feature set.
4. This company selected Macola and migrated from AccPac for DOS 6.2. I think the AccPac example drives decisions within the ERP Vendors' boardrooms. The industry now understands that a software vendor can loose significant market share if it doesn’t do enough to respect and assist customer sites in their efforts to update.

Those of you who I met during last year’s Engage will remember me as the guy with the big black binder. As an IT/MIS Professional, I see my role as intermediately between the company (my employer) and our vendor Exact Software (my business partner). I will do my best to aggressively identify and resolve bugs that we encounter and drive the feature set when it falls short of expectation. I consider that activity to be mutually beneficial. Understanding Exact Software’s plans and allocation of resources is critical if I expect my efforts to be successful.

So I have been digging for information on this topic too. Here are some gems that help me understand the big picture:

Exact Software’s annual report clearly outlines the strategic reasons for making acquisitions: Technology, Business Partner or Customer Base. They do also outline how their global software products benefit from the acquisition of what they refer to as “Local Back Office Products” Both Macola products are grouped together in this category. Exact Globe and Exact Synergy stand apart as core products on the international scale.

Accurate numbers for the install base are hard to pin down. Some accurate numbers were presented during an online User Group meeting in January 2009. Exact has 16,484 companies using Globe. Exact Macola over 10,000 in North America. My estimate is that roughly 20% of Macola customers are using the ES product. (That’s ballpark guys, I sure would like feedback or more accurate info!)

So my assumption is that less than 10% of Exact Software customers worldwide are using the Macola ES product. While almost a third are on Macola Progression.

I initiated some dialogue on that topic last year. I am trying to understand how broad the user base is with ES compared to Progression. Clearly we (ES Users) have the short end of the stick.

Accuracy of the number aside, I think the trend is quite clear. So my conclusions are straight forward. Exact Software purchased Macola for the User Base. The Progression user community is a significant portion of Exact Sofware’s world wide customer base. Progression customers will receive the bulk of attention as Exact Software attempts to migrate these users to newer (better?) products.

If I see that ES is positioned as the logical migration path from Progression to Globe, then I can expect ES to evolve and be a product that we continue to use for the near future. If ES is not on that migration path, then it really is an insignificant product in Exact Software’s world wide offering. I can see a potential for it to just ‘wither on the vine’.

Long term I wonder if I am able to affect change in the feature set of the ES product line. If not, then we as a company MUST jump ship. ES is just not capable of delivering the functionality required in a multi location pure distribution environment.

Long term success of Exact Software will require successfully converting acquired users of “Local Back Office Products” to the Exact Globe/Synergy toolset. Accepting and understanding that reality will help us to get the most out of our partnership with Exact Software. My view of Globe today is that it is an inevitable change this company needs to make. The question for us is when.


DGILLZ made the comment that the Macola product(s) will be around longer. I agree. My impression is that Exact Software Corporate will protect the revenue from its existing customer base. Treating those people with respect and providing good software is the best way for Exact Software to remain profitable. Don, I am very curious to know where you feel Globe does not measure up. Looks like I need to buy you a beer or two in Nashville!


 
Globe as it exists on the drawing board is very good, and actually addresses some of the weaknesses in Macola, like a true multiplant MRP, intercompany supply orders, etc.

The Globe workflows - similar to what you see in ES accounting - are very cool, and pervasive for all modules, not just accounting.

Globe doesn't measure up because it doesn't exist yet. The basic core functionality presented at the virtual user group meeting a few weeks ago has yet to be released. The data conversion doesn't exist yet either. I have a customer ready to go to Globe now, but the reins were pulled back on us. This comes directly from Matthew Bather at Exact.

The product as discussed is scheduled for release at Engage.

I personally think a good stable release of it is 2 years away. I hope I am wrong.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

"What version of URGENT!!! are you using?
 
Interesting,

GLOBE does exist as a product from Exact 'worldwide', it has a significant install base.

So, what you are refereing to is both the North American 'Localized' verision and the conversion/migration tools to get there. I can accept that those are "works in progress". I certainly don't want to be the first in line!

Yes, if this localization must include Sales Tax and Payroll Tax issues among other things, then your two year timeline is realistic.

FYI (from a Canadian point of view) Tax Laws and structure is very different in the US compared to most of the world. We Canadians get shafted when we try to use US developed software, it rarely works in Canada from Tax point of view. We could probabaly use the 'International' Globe today, as the European sales tax structure is very similar to what we use in Canada.

When the Localization of Globe is done for "North America" I hope they don't water down the tax functionality such that it does not work in Canada!

I certainly would like to know more about the migration path once that is ironed out.
 
Taxes did not even enter my mind when I made my post.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

"What version of URGENT!!! are you using?
 
Exact will need to do a very good job on the conversion process. I know a number of Progression customers that have held back on converting to ES because of the stories they have heard from other customers that went through the conversion process.

Peter Shirley
Macola Consultant, PA and surrounding states.
 
Jay,

Not just the localization and conversion, but core functionality is not complete yet. This is Exact's own words.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

"What version of URGENT!!! are you using?
 
Jay,

A little more background, Globe was a financials only package when Exact bought out Macola - they didn't even have an item master. All of the distribution and manufacturing in Globe has been developed in the last 5 years. The install base of Globe is largely the same, although certainly there are some who have adopted Globe's additional functionality, and I know there are several installs in the US and Canada.

Will you be at Engage? If so look me up.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

"What version of URGENT!!! are you using?
 
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