Infor Recent Developments
Cloud subscription revenues jumped 30% in its latest quarter ended in October 2017.
Infor M&A Activities
Acquired Birst for Cloud BI in 2017.
Ownership: Golden Gate Capital Partners, Koch Industries, Summit Partners - x
Functional Market: Analytics and BI, Customer Relationship Management, Enterprise Performance Management, ERP Financial Management, ERP Services and Operations Management, Human Capital Management, Procurement, Supply Chain Management,
Key Verticals: Aerospace & Defense, Automotive, Construction and Real Estate, Consumer Packaged Goods, Distribution, Education, Government, Healthcare, Leisure & Hospitality, Life Sciences, Manufacturing, Media, Non Profit, Oil and Gas, Professional Services, Retail, Transportation, Utility,
Infor Key Enterprise & Cloud Applications
CloudSuite Aerospace & Defense, CloudSuite Automotive, CloudSuite Business, CloudSuite Business (SMB), CloudSuite Corporate, CloudSuite Distribution Enterprise, CloudSuite Facilities, CloudSuite Fashion, CloudSuite Financials & Supply Management, CloudSuite Food & Beverage, CloudSuite HCM, CloudSuite Healthcare, CloudSuite Hospitality, CloudSuite Industrial (Enterprise Edition), CloudSuite Industrial (SMB), CloudSuite Industrial (SyteLine), CloudSuite Public Sector, Infor Configure Price Quote, Infor CRM, Infor HR Service Delivery, Infor Learning Management, Infor Marketing Resource, Infor Rhythm E-commerce & Collaboration Platform, Infor SCM, Infor Service Management, Infor Talent Management, Infor Talent Science, Infor Workforce Management
Infor’s transformation is fast and furious as the ERP vendor embraces the Cloud with gusto.
Following the $2 billion investment from Koch Industries in November 2016, Infor acquired Birst for its Cloud-based analytics applications five months later.
In the meantime, its successes in selling Cloud-based applications for different verticals from aerospace to wholesale distribution continued unabated.
By mid-2017, more than half of its bookings are derived from its Cloud products, compared with single digit just a few years earlier.
Already, Infor has signed nearly 9,000 Cloud customers with some 71 million users.
That’s quite a stunning accomplishment for a vendor that has been relying heavily on onpremise software, especially tens of thousands of customers and their maintenance revenues that it picked up through a series of acquisitions since its creation in 2002.
Today, its Cloud Suite for different verticals and horizontal pillars like ERP and HCM have all been rewritten to incorporate the latest user interface enhancements as well as security features.
Syteline, for instance, now runs a Platform As A Service that allows easy add-ons from its partners via the Cloud.
Its acquisition of GT Nexus has helped its customers – covering 50,000 companies and their trading partners - take full advantage of a Cloud-based supply chain for global logistics support.
What comes next is to continue to expand GT Nexus’ capabilities to render the use of EDI obsolete.
The introduction of Coleman, its play in artificial intelligence, is indicative of the type of innovation that Infor is bringing to the ERP marketplace, which in itself could undergo radical transformation if Infor has its way.
Infor Revenues, $M:
|Type/Year||2015||2016||YoY Growth, %|
|Total Revenues, $M||2723||2856||4.88%|
|Enterprise Applications Revenues, $M||2022||2120||4.85%|
|Cloud Applications Revenues, $M||202||376||86.14%|
* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Infor Revenue Breakdown By Type, $M:
|Type||License||Services||Hardware||Support & Maintenance||SaaS|
|% of Total Revenues||20%||25.8%||0%||41.93%||12.3%|
Infor Enterprise Applications Revenues By Functional Markets, $M:
|Split by Functional MArkets||% of Total Revenues||2016 Enterprise Apps Revenues, By Functional Markets, $M|
|Analytics and BI||2%||42.4|
|Customer Relationship Management||9%||190.8|
|Enterprise Performance Management||1.1%||23.3|
|ERP Financial Management||54%||1144.8|
|ERP Services and Operations Management||14%||296.8|
|Human Capital Management||5%||106|
|IT Service Management||0%||0|
|Project Portfolio Management||0%||0|
|Sales Performance Management||0%||0|
|Supply Chain Management||10%||212|
|Treasury and Risk Management||0%||0|
Infor Enterprise Applications Revenues By Verticals, $M:
|Split by Verticals||% of Total Revenues||2016 Enterprise Apps Revenues, By Verticals, $M|
|Aerospace & Defense||1%||21.2|
|Banking and Financial Services||0%||0|
|Construction and Real Estate||4%||84.8|
|Consumer Packaged Goods||8%||169.6|
|Leisure & Hospitality||4%||84.8|
|Non Profit||1%||21.2||Oil and Gas||1%||21.2||Professional Services||9%||190.8||Retail||6%||127.2||Transportation||2%||42.4||Utility||1%||21.2|
Infor Revenues By Region, $M
|Region||% of Total Revenues||2016 Total Revenues, $M||2016 Enterprise Applications Revenues, $M||2016 Cloud Applications Revenues, $M|
Infor Direct vs Indirect sales
|Region||Direct Sales||Indirect Sales||Total|
No. of Customers: 73000
No. of Enterprise Applications Customers: 73000
No. of Cloud Customers: 8488
No. of Cloud Subscribers: 71 million
As one of the biggest ERP vendors, Infor is capable of handling end-to-end business process automation needs of more than 73,000 customers helping them tackle various operations complexity that extends across geographies and industry-specific requirements.
Following a series of Cloud acquisitions and organic growth, Infor said its Cloud applications are being used by 8,500 customers and 71 million users.
Among its ERP customers are: York Metropolitan Transportation Authority, Lineage Logistics, Toye, Kenning & Spencer, Egbert Taylor Group, Kempinski Hotels, First Transit, Promethean, The Caldrea Company, Zicom, Spraylat, Organic Valley Family of Farms, Koch Equipment, Pride Industries, Dematic, Beldon Brick, Ferrari, High Five Sportswear, Shaklee Corporation, Herman Miller, Western Wire, Rocky Brands, Physicians Formula, Duramax Marine LLC, Piper Aircraft, Karma Industries Limited, Montebello Packaging, HKL Baumaschinen GmbH, Moba, Banglacat, Pama, AUNDE Brazil, Essen, Group Dekko.
Infor saas CRM customer references include: Sanofi, Publix, o2, LSI, Invista, GE Capital, Energy Australia, Dell, Crown Perth, Covident, Barnes&Noble, Amgen, American National, TicketMaster, Telstra, ScotiaBank, Scwepps, Pitney Bowes, Callaway, Blanchard, Sony Computer Entertainment, Heartland Payment Systems, World Financial Group, Ted Baker London, Rheem, Georgia-Pacific and others.
Infor HCM customer references include Community Medical Centers, Kellogg Company, PSI, State of Utah, itella, Interface, AMC theatres, Einstein Healthcare Network, Hyundai Motor Europe., Affiliated Computer Services, Butler Machinery Co., City of Abilene, City of St Paul, MN; Cook County Hospital, Friendly’s Ice Cream Corp., and LHC Group.
Over the past year, Infor has invested heavily in analytics by buying Cloud BI vendor Birst for $105 million after spending $126 million for Predictx for retail analytics.
The moves are expected to drive better insights for its customers both at the horizontal level and retail-specific use cases.
In 2017, Infor announced its artificial intelligence play called Coleman, which aims to use the latest machine-learning technologies to eliminate certain business processes, similar to what robotic process management can do to with virtual assistants handling repetitive inquiries from driving direction to helpdesk support.
Along with its Enterprise Asset Management applications, Coleman will zero in on predictive maintenance and drive positive results for many of its industrial customers.
Another opportunity lies in going upmarket and scaling its Cloud applications to support some of the largest organizations in the world.
Koch Industries is a case in point as the 49% owner of Infor plans to run its Cloud HCM applications for its own 120,000 employees in 60+ countries.
Koch Industries’ investment in Infor marks a watershed moment for the ERP vendor as it aims to become the software engine that sparks innovation across many industries.
Koch, which posts $100 billion in revenues from a smattering of manufacturing businesses like paper mills and fertilizers, is a classic case of an old-line company not wanting to be disrupted by digital transformation.
The issue is whether Koch’s expectations of reinventing its huge portfolio of companies are aligned with those of software vendors like Infor, which appears to be eager to not just embrace the Cloud, but to stay buzzword compliant with prevailing trends from AI to advanced analytics.
Koch is investing $2 billion in Infor, a substantial sum by someone that has not owned a major software company before.
Koch is also adopting Infor’s Cloud products, spending $43 million on a five-year SaaS deal to run its Cloud HCM and Financials applications.
It’s even possible that Koch is eager to push Infor faster in order to ignite innovation across its industrials complex, while prodding and even mandating its business partners to do the same – similar to what Wal-Mart has done to elevate the technology quotient of its suppliers.
At the end of the day, Infor is a vendor that has gone through radical transformation over the past seven years since its current management team led by Charles Philips began to take charge.
The next seven years could determine whether Koch’s investment is going to pay off and the bulk of Infor’s 73,000 customers are willing to take the plunge and in sync with the unusual alliance between Koch and Infor.
Infor primarily sells direct to its ERP and Cloud customers, but it also relies on reseller channel to help address the needs of those in EMEA and Asia Pacific.
Currently it has more than 1,890 resellers and partners in 41 countries.
Infor Cloud Infrastructure InsightsAmazon AWS, IBM SmartCloud, Microsoft Azure
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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