By 2024, 60% of all new midsize core financial management application projects, and 30% of large and global ones, will be public cloud implementations. This according to Gartner paints a clear picture: The cloud is a reality. However, which vendors deliver? This is where analyst firms come in.
Every analyst has a unique way of measuring performance. Functionality vs. usability, Innovation, satisfaction, and more, Gartner’s Magic Quadrant makes judgements based on how well a vendor has done and how well they are positioned for growth in the future.
What is Gartner’s Magic Quadrant?
An annual report designed to analyze “completeness of vision” and “ability to execute,” Gartner analyzes software and services in dozens of categories to discuss vendors’ strategy and execution.
In their “Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large and Global Enterprises,” the report compares ERP solutions built, deployed, or modified to fit the cloud.
Magic Quadrant for Cloud Core Financial Management Suites
This Magic Quadrant covers core financial management suites that provide a view of an enterprise’s financial position through automation and process support for any activity that has a financial impact.
According to Gartner’s definition, core financial management suites include:
- The functional areas of general ledger (GL), accounts payable (AP), accounts receivable (AR), fixed assets (FA), project accounting, project costing and project billing.
- Newer capabilities, when available for inclusion, such as subscription billing, revenue recognition and account hub, as well as process enhancements aided by AI and ML.
- Financial analytics and reporting capabilities, including the provision of financial information (via profit and loss [P&L] statements and balance sheets, for example) and of key performance indicators to managers and executives. These capabilities are also gradually being targeted with AI and ML.
- Basic indirect purchasing functionality, from creating a requisition through to purchase order processing and AP invoice matching and payment. Many enterprises — especially midsize ones — need some basic procurement functionality within their core financial applications.
Ability to Execute and Completeness of Vision
The Magic Quadrant is based on Ability to Execute and Completeness of Vision, defined as the following:
- Ability to Execute: Gartner assesses vendors’ Ability to Execute by evaluating the products, technologies, services and operations that enable them to be competitive, efficient and effective in this market, and that benefit their revenue, client satisfaction and retention, and general reputation.
- Completeness of Vision: Gartner assesses vendors’ Completeness of Vision by evaluating their ability to articulate their perspectives on the market’s current and future direction, to anticipate customer needs and cloud technology trends, and to tackle competitive forces. Each vendor’s Completeness of Vision is judged on its understanding and articulation of how market forces can be exploited to create new opportunities for itself and its clients.
Who Made the List?
NetSuite Financial Management is a comprehensive financial management suite that, together with financial planning, includes billing and revenue management capabilities. It is delivered on the NetSuite SuiteCloud Platform, which enables partners and users to extend, customize and integrate their applications. NetSuite Financial Management is part of a broader ERP suite. NetSuite has customers in a wide range of industries, but the business services, manufacturing, high-technology, retail and wholesale sectors are its largest.
Improving both their ability to execute and completeness of vision, Gartner celebrated NetSuite’s ability to fit a variety of companies, high levels of customer satisfaction, functionality, and roadmap to AI/ML technology.
The Acumatica Financial Management suite is sold both on a stand-alone basis and as part of a broader ERP suite that includes distribution and manufacturing capabilities, along with CRM functionality. The solution is designed for midmarket customers and deployed in the Acumatica public cloud, run on Amazon Web Services (AWS), Microsoft Azure, or in a private cloud of the customer’s choice (either on-premises or at a hosted facility).
Rated strongly for completeness of vision, Acumatica was celebrated for their focus on the cloud, its flexibility in supporting the extension of the functionality delivered by its partners, and its good core financial management functionality for midsize organizations. Gartner found that Acumatica made a strong showing on the list due to market execution and targeting, customer references, and integration capabilities, making it easy for customers to get the solution they need.
Get the Entire Report
The entire Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large and Global Enterprises discusses a variety of other topics and compares the ten largest cloud ERP vendors. We invite you to download the entire report here for free.
At MIBAR, we have the experience and expertise to deliver the cloud ERP solutions you need for your growing business. With nearly three decades of experience in the industry, we are a leading implementation partner and application consultant for the NetSuite, Acumatica, Dynamics 365, Microsoft Power BI, and Microsoft Dynamics GP platforms. Looking to learn more? Contact us for a free consultation.