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I find Bob Scott’s overview of the Top 100 VARs insightful because it confirms the changing VAR landscape and also brings attention to trends that you might not have noticed. This year’s report underscores the increasing prevalence of mergers and acquisitions (M&A), significant shifts related to legacy systems and migration, and the growing momentum of Dynamics 365 Business Central (BC).
Mergers and Acquisitions: The Consolidation Wave
Consolidation remains a significant trend within the VAR community, particularly among MSPs (Managed Service Providers) and CPA (Certified Public Accounting) firms. The pace of M&A activities has quickened, driven by the need for scalable operations and enhanced service offerings. Notably, CPA firms are actively acquiring Dynamics resellers to broaden their service portfolios. It also seems that Intacct and its resellers have been putting more focus on the SIAP program.
Business Central: Gaining Momentum
Dynamics BC is gaining significant momentum, as highlighted in the report. This platform's growth is driven by its comprehensive suite of functionalities and the increasing demand for cloud-based solutions. Many VARs, including RSM, report strong adoption rates among both new clients and those migrating from legacy systems.
At Greenshades, we are witnessing a similar trend, with BC and Sage Intacct becoming a preferred choice for many of our customers seeking a flexible and robust ERP solution.
Legacy Systems and the Migration Imperative
A notable trend in this year’s report is the ongoing migration from legacy systems like Dynamics GP (GP) to modern solutions such as BC. The benefits of migrating to BC are numerous, including improved scalability, enhanced functionality, and better integration capabilities. Migration to BC reduces maintenance costs, enhances data accessibility, and provides real-time insights that empower better decision-making.
Greenshades has been at the forefront of assisting clients with this transition, offering robust payroll functionalities that complement the core GP model, providing a migration path for when they are ready to upgrade their business management system.
Spotlight on Matt Kenney and the GP Model
Matt Kenney from RSM provides insightful commentary on the enduring value of the GP model. Despite the push towards cloud-based solutions, many businesses find it challenging to replicate the customizations and integrations of their existing GP setups.
Greenshades offers a unique advantage here, providing advanced payroll functionalities that enhance the GP model, allowing businesses to retain their core system while enjoying improved operational efficiencies
Customer Conservatism and Strategic Spending
In the current economic climate, businesses are becoming more conservative with their spending. The report notes that customers are more methodical and thoughtful in their decision-making processes. This cautious approach underscores the importance of demonstrating clear value and ROI for any new software investment.
Greenshades has adapted to this shift by offering solutions that deliver tangible benefits, such as enhanced payroll functionalities and seamless integration with existing systems, ensuring our clients get the most value from their investments.
Conclusion
Bob Scott’s Top 100 VARs for 2024 highlights critical trends shaping the mid-market financial software sector. From strategic consolidations and the migration from legacy systems to modern platforms like Business Central, these developments are reshaping the landscape. At Greenshades, we are committed to staying ahead of these trends, delivering innovative solutions that meet the evolving needs of our clients.
