Aberdeen Group Publishes Research Report On QAD Enterprise Applications On Demand

Leading Technology Analyst Cites QAD among the First-to-Market with a SaaS-based ERP Solution for Global Manufacturers
 
Jan. 17, 2011 - PRLog -- QAD Inc. (NASDAQ-QADA, QADB), a leading provider of enterprise software and services for global manufacturing companies, announced today that Aberdeen Group, a leading firm of technology analysts, has published QAD On Demand Gives Manufacturers the Tools They Need to Become Global – its latest Analyst Insight report – in which it cites QAD as a pioneer in delivering a complete Enterprise Resource Planning (ERP) solution in a Software as a Service (SaaS) delivery model.

This report is the latest in a series of Aberdeen research reports exploring trends and observations around companies’ willingness, during the last year, to adopt SaaS for ERP versus standard on-premise solutions. “Some ERP providers have been ahead of the curve in acting on this willingness,” Aberdeen stated in its report. “QAD was among the first to offer ERP in the SaaS model with QAD On Demand.”

QAD Enterprise Applications On Demand is a SaaS solution that delivers all of functionality of QAD’s On Premise applications, while reducing the total cost of ownership.  All of the software, systems and infrastructure are managed and administered by QAD in a secure, reliable data center, thereby mitigating many of the IT and financial risks associated with ERP implementation and operation.

Aberdeen identifies multiple reasons that explain why companies consider a SaaS option for their ERP solution. Among the reasons most often cited by respondents in a 2010 Aberdeen survey were:  a lower total cost of ownership (TCO), the reduced cost and effort of upgrading and lower up-front costs.

“QAD On Demand is priced to address some of these cost factors,” noted Aberdeen in its report. “If you consider all of the associated costs of running an on-premise solution, including hardware, software and supporting staff, the all-inclusive price of QAD On Demand is lower than the average cost of a traditional licensed on-premise solution.”

Moreover, Aberdeen’s survey responses indicate that QAD should expect a further uptick in QAD On Demand adoption due to many companies’ limited IT resources and expressed interest in focusing those IT resources elsewhere.  QAD On Demand addresses these concerns by minimizing the underlying infrastructure work and technical efforts associated with a deployment, while providing its customers 24 x 7 global support.

“We’re extremely pleased by the outlook expressed in the Aberdeen Analyst Insight report,” stated Gordon Fleming, chief marketing officer at QAD. “It validates the value that QAD On Demand provides our customers and corroborates our own market adoption expectations. In fact, we expect significant adoption in the coming year among customers planning global expansion and smaller companies requiring a robust, yet affordable ERP option.”

About Aberdeen Group
Aberdeen Group is the leading provider of fact-based research helping organizations and individuals make better business decisions. Founded in 1988, Aberdeen has earned the reputation as being the "voice that matters" when it comes to understanding the implications and results of process innovation, methodology advancements, technology deployments, and business re-engineering. For more information, visit www.aberdeen.com.

About QAD
QAD is a leading provider of enterprise applications for global manufacturing companies.  QAD applications provide critical functionality for managing manufacturing resources and operations within and beyond the enterprise, enabling global manufacturers to collaborate with their customers, suppliers and partners to make and deliver the right product, at the right cost and at the right time.  Manufacturers of automotive, consumer products, electronics, food and beverage, industrial and life science products use QAD applications at approximately 6,100 licensed sites in more than 90 countries and in as many as 27 languages.  For more information about QAD, telephone +1 805 684 6614, or visit the QAD Web site at www.qad.com.

"QAD" is a registered trademark of QAD Inc. All other products or company names herein may be trademarks of their respective owners.

“QAD” is a registered trademark of QAD Inc. All other products or company names herein may be trademarks of their respective owners.
Note to Investors: This press release contains certain forward-looking statements made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. A number of risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. These risks include, but are not limited to, evolving demand for the company's software products and products that operate with the company's products; the company's ability to sustain license and service demand; the company's ability to leverage changes in technology; the company's ability to sustain customer renewal rates at current levels; the publication of opinions by industry and financial analysts about the company, its products and technology; the reliability of estimates of transaction and integration costs and benefits; the entry of new competitors or new offerings by existing competitors and the associated announcement of new products and technological advances by them; delays in localizing the company's products for new or existing markets; the ability to recruit and retain key personnel; delays in sales as a result of lengthy sales cycles; changes in operating expenses, pricing, timing of new product releases, the method of product distribution or product mix; timely and effective integration of newly acquired businesses; general economic conditions; exchange rate fluctuations; and, the global political environment. In addition, revenue and earnings in the enterprise resource planning (ERP) software industry are subject to fluctuations. Software license revenue, in particular, is subject to variability with a significant proportion of revenue earned in the last month of each quarter. Given the high margins associated with license revenue, modest fluctuations can have a substantial impact on net income. Investors should not use any one quarter's results as a benchmark for future performance. For a more detailed description of the risk factors associated with the company and the industries in which it operates, please refer to the company's Annual Report on Form 10-K for fiscal 2010 ended January 31, 2010.

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Founded in 1979, QAD has been recognized as a leading provider of enterprise resource planning (ERP) software applications for global manufacturing companies. Today, QAD enterprise applications leverage advances in Internet and enabling technologies to provide critical functionality for managing manufacturing resources and operations within and beyond the enterprise, enabling global manufacturers to collaborate with their customers, suppliers and partners to make and deliver the right product, at the right cost and at the right time.

QAD enterprise applications are focused and optimized for select manufacturing industry segments: automotive, consumer products, electronics, food and beverage, industrial and life sciences.
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