: The $2B Company No One Has Ever Heard Of"> Infor is like the Rodney Dangerfield of the software world. For a company that has amassed 72,000 customersmore than SAP and Oracle combinedhas acquired more than 30 companies in the past five years (running neck-and-neck with Oracles much ballyhooed acquisition tally), and realized more than $2 billion in sales last year alone, Infor doesnt get no respect.Jim Schaper, Infors chairman and CEO, is out to change the companys perceptionor lack thereofin the marketplace. At Infors annual Inforum user conference in Las Vegas Sept. 9-12, Infor is making a slew of announcementsfrom the decision to support versions lV and V of Baans ERP (enterprise resource management) software despite Baans previous decision to stop upgrading the software, to a newly defined SOA (service oriented architecture) road map that includes new components that evolve each brand beyond its core functionality, and free enhancement packages that upgrade each suites SOA capabilities. Click here to read more about the growing SOA group membership. Perhaps more importantly, Schaper is shoring up the companys internal processes and systemswinnowing 72 general ledgers down to one later this month, for exampleto prepare for a potential IPO. "To be clear, we are very comfortable today absent an IPO. We do not need to go public to sustain organic growth," Schaper said in an interview. "We are getting awfully large to be private. Because we are the leader in the mid-market, there is an inherent advantage to being public. You get covered by certain analysts. Now were not mentioned much in research reports. It puts the company at a disadvantage. [An IPO] would put us in a position to be considered in the same way as our two largest competitors: Oracle and SAP. As a private company, were not even known." While Schaper is clearly not committing to an IPO, he is hedging his bets that the company will be capable of filing an S1 form some time in the end of the first quarter of 2008. In light of the billions Infor has spent to achieve its size, Schaper said he would use the cash raised in going public to pay down debt. "We would clearly keep some on the balance sheet for investment and potential acquisition," he said. But Infor is reversing its acquisition strategy, moving from an Oracle-like "buy rather than build" modus operandi to more of an SAP-like approach of growth through organic development, with some technology- or service-related acquisitions to fill holes. Where Infor is clearly diverging from Oracle and SAP is in its SOA strategy. Rather than develop an underlying integration and development platform to its applications, Infor is componentizing its applications and adding phased feature packs and incremental upgrades that it will provide free to customers on current maintenance plans. Dubbed the Infor Open SOA plan, the initial phases are focused on enabling applications to use standardized business object documents for linking business process flows across applications in a publish/subscribe, event-driven and decentralized framework. The framework itself leverages native support for the Open Applications Group Interoperability Standard for document exchange via the Infor Enterprise Service Bus, according to Infor Chief Technology Officer Bruce Gordon. "Weve got to simplify for customers, make it easier to take feature packs and have the product SO-enabled, to use other products weve acquired or to take new products weve developed and operate across multiple systems," said Gordon. "Were not trying to force all products into a single box. We dont believe thats the right way to have customers rip and replace and upgrade to a single project. We dont believe its logical. By moving to a component-based strategy [this] allows our customers to extend the life of an application and still be competitive." What Open SOA will do is enable interoperability between Infors major suitesthe company announced interoperability between ERP SL, Infor Enterprise Asset Management and Infor SRM SupplyWebthird-party apps and newly developed components. The new componentsInfor has designated about a dozen areas of focuswill tap business-specific functionality and industry experience from Infors global development team to provide functionality that will work with software from Infor and others. One example, being announced this week at Inforum, is Multi-books Accounting, which is designed to work alongside financial management systems to help companies cast their financials in multiple ways. "If you have an operation in China and you have to follow the Chinese governments rules of what you call accounting concepts like salary, how do you get a system so customers dont have to rip and replace to work in China, the U.S. and Europe?" Gordon asked. "Weve designed a new component that can run independently of ERP and can coexist with others to manage financials through the component and be compliant." Page 2: Infor: The $2B Company No One Has Ever Heard Of
Founded in 2002 by a group of software industry veterans and private equity firms, Infor has grown to become the third-largest enterprise applications vendor in the world behind SAP and Oracle. Yet the company is little known outside of its customer base, and, because its private, according to the companys top executive, receives little attention from analysts and media.