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Technology Stocks : NT Accounting Software (GPSI, PSQL, SOTA, TMBS)

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To: Czechsinthemail who wrote (34)9/8/1997 11:47:00 AM
From: Alan A. Hicks   of 149
 
Baird, I made my own product comparison between Great Plains (GPSI) and SOTA on the SOTA thread if you have not already read it. Bottom line, SOTA's MAS 90 is the clear market leader (and increasing their lead) in its market space. Acuity is SOTA's new entry into the Microsoft NT/SQL Server environment.

In a February press release GPSI announced they had sold 8000 copies of their Dynamics in 4 years. MAS 90 for Windows sold 10,000 in the first 6 months after its June 1997 release. SOTA expects to sell another 15,000 copies this year. By the end of the year Great Plains might have 9500 sold. So it would be 9500 in 4 3/4 years for GPSI's Dynamics compared to 25,000 for MAS 90W in 18 months. Platinum has only a small presence in the Windows market space.

MAS 90 not only has been the best product (DOS or Windows) for the mid-range for many years (and they are aggressively enhancing it.) But, even more important, SOTA has the strongest reseller channel in the mid-range market. SOTA has over 6000 CPA firms that recommend MAS 90 and over 1000 active VARs (Value Added Reseller) that sell and support MAS 90. A very key distinction is MAS 90 has about 250 Master Developers that add value to MAS 90. Master Developers are independent software developers that have developed vertical applications for just about any end market you could think of. Some large Master Developers have catalogs with literally thousands of enhancement modules.

Building a strong VAR channel is not an easy task. With all new products out, SOTA's VAR channel has never been healthier. SOTA is adding about 75 VARs and about 150 CPA/consultants that recommend MAS 90 per quarter. SOTA's strong reseller channel creates a barrier to competition. It also makes SOTA valuable as a takeover candidate by larger financial applications companies that see the mid-range market as a new high growth market.

On Acuity - Great Plains and Platinum both have more mature products with more modules and more functionality. On the negative side, both were developed with proprietary tools. PSQL has sold about 700 in three years. GPSI has sold something over 200 in its first year with its NT/SQL Server product. SOTA will also sell around 200 copies of Acuity by the end of the year.

What does Acuity bring to the table the others do not? Acuity has 100 percent Microsoft technology. A key diistinction here is Acuity was developed with standard Microsoft tools - not based on a proprietary language and proprietary tools. This gives Acuity ability to be quickly integrated with mission-critical in-house developed and third-party modules. As vertical partnerships are developed, SOTA will have full solutions for specific markets that will be the best on the market. With more modules out in a few weeks and complete solutions for a number of vertical markets, Acuity sales should gain momentum.
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