If you're researching ERP software, then you've probably heard of analyst firms such as Gartner talk about Tier 1, Tier 2 and Tier 3 ERP software.
If, like many of our readers you're new to the world of ERP software or simply topping up your knowledge, then maybe you're thinking:
'What are ERP Tiers? What is Tier 1 ERP software?'
'What are examples of Tier 2 ERP software? What is Tier 3 ERP software?'
'Which Tier of ERP system is right for my business?'
In this article we'll tell you all about the different Tiers of ERP software and help you understand if you should buy Tier 1, Tier 2 or Tier 3 ERP software for your organization.
Tier 1 ERP software is typically used by the largest and/or most complex organizations and multinationals in the world, or those with the ambitions of becoming market leaders. Firms such as Gartner will typically describe Tier 1 ERP users as having in excess of 1000 employees and revenue of at least $500M USD per annum.
Only Tier 1 ERP software can consistently and reliably solve the problems of some of the largest organizations in the world, covering accounting, manufacturing, production, project management and programme management and more for companies such as Coca-Cola, Nike, P&G and more.
SAP is synonymous with Tier 1 ERP vendors with it's ERP solution ECC/6 and SAP S/4 HANA. However SAP also provides Tier 2 ERP solutions as well such as SAP Business One.
Download SAP Business One Guide >>>
Download SAP S/4 HANA Guide >>>
Oracle is also a Tier 1 ERP heavyweight, providing large enterprises with ERP solutions such as JD Edwards and Ebusiness Suite as well as it's latest rendition - Oracle ERP Cloud. Like SAP, Oracle also provides Tier 2 ERP software like Netsuite.
Download Oracle Netsuite Guide >>>
Microsoft is arguably also a Tier 1 ERP provider with it's ERP product Microsoft Dynamics 365, although some would say it doesn't make the qualification.
Tier 2 ERP software are ERP systems typically used by midmarket and growing businesses with anywhere from 20 through to 1000 employees and often more. Tier 2 ERP systems fit businesses with limited business process complexity and geographical coverage too, such as services based businesses.
Oracle Netsuite is a popular Tier 2 Cloud ERP software which is used by thousands of midmarket businesses all around the world in various industries such as manufacturing, services, SaaS, healthcare and more.
SAP Business ByDesign is a Tier 2 Cloud ERP system which is commonly used by growing organizations in the pharmaceuticals, high tech, professional services and healthcare space.
Download SAP Business ByDesign Guide >>>
Sage Intacct started off life as a Cloud financial management tool but has slowly evolved into a Tier 2 ERP solution for companies in the professional services & consulting space, ecommerce and healthcare industries.
Download Sage Intacct Guide >>>
Workday is arguably a Tier 1 ERP solution but we think of it as a Tier 2 ERP solution here at ERP Research.
Tier 3 ERP software are ERP systems which cater for a very specific niche or industry or geographic location. For example, some Tier 3 ERP software is specifically designed for the food manufacturing industry or for companies based in Sweden.