UNIT4 Strengths, Domain Expertise, and Key Differentiators
In the second qurter of 2020, Unit4's cloud bookings continued to grow by 12.5% in Q2 YoY, with total H1 bookings showing 24% YoY growth; also, cloud subscription revenue grew 14.3% in Q2 compared to the previous year and Net Cloud Revenue Retention increased to 105%. Unit4 continues its focus in helping customers maintain business continuity and meeting growth objectives, amidst global pandemic.
Unit4 is focused on four strategic industry verticals: professional services organizations, higher education, public services, not-for-profit, and offer back office ERP as well as domain specific front office functionality for these verticals. It has expanded its reach by acquiring Intuo, a Talent Management Solution, Prevero, which sells Corporate Performance Management and Business Intelligence apps as well as its purchase of 3 Rivers which gave Unit4 additional products for student information systems. Altogether, Unit4 is well-positioned to become the one-stop-shop for customers in these four verticals, which represent more than two-thirds of its revenues and bookings.
UNIT4 Recent Developments
During the COVID-19 pandemic, Unit4 responded to the needs of the customers towards ERP as more employees move to remote or home-based working. The update of the ERP includes improvements to collaboration based project planning, new extensions by partners delivered through the Unit4 extension kit and industry accelerators for implementation.
After appointing Mike Ettling as Chief Executive Officer in 2019, Unit4 strengthened its positioning as an ERP vendor that delivers better "People Experience" to meet today's changing work environment, particularly for service-oriented organizations. Following his appointment, Unit4 named Julie Knight as its Chief Marketing Officer, Brad Everett as VP Corporate Marketing, Beata Wright as EVP/Global Head of Partner Ecosystems, Lisa Dodman as Chief People Officer, Billy O'Riordan as SVP, Professional Services and most recently, Mike Slater as COO and Jeremias Jansson as CSO roles.
Unit4 has evolved its customer care and experience over the past 18 months. In November 2019, the company launched its new customer community - Community4U - a self-service platform for customers and partners with peer-to-peer forums and opportunities to learn from each other. Today, Community 4U is an active online ecosystem with more than 8,000 registered customers and partners.
In June 2020, Unit4 launched a new Global Partner Program to provide training, resources and support to its global ecosystem of partners to help their clients deliver an exceptional people experience to their customers. The Program is designed to enable partners to accelerate the development and implementation of Unit4 solutions which transform how people-centric organizations deliver a better place and a better way for people to do work.
At the its latest user conference, Experience4U, Unit4 launched Unit4 ERPx, its next-generation cloud Enterprise Resource Planning (ERP) solution for mid-market services organizations. ERPx delivers fully integrated ERP, HCM and FP&A, on a unified architecture, with rapid deployment and industry-specific innovations out-of-the-box. On the second day of the conference they also announced the latest version of Unit4 Financial Planning & Analysis (FP&A), including new capabilities enabling finance teams to more intelligently forecast and plan, helping organizations make better decisions more quickly and effectively.
While many vendors offer AI-powered solutions today, Unit4’s new tool, Smart Forecaster, extends intelligent forecasting to business users across the enterprise. This new capability leverages Artificial Intelligence to help finance teams forecast more frequently and accurately by using historic data combined with influence factors and scenarios. Smart Forecaster is available to customers through Unit4’s early adopter program.
UNIT4 Mergers and acquisitions (M&A) Activities
In 2019, Unit4 acquired Intuo, a provider of Talent Enablement solutions, to strengthen the HCM focus.
Earlier acqusitions include 3 Rivers (a provider of Student management solutions, known for delivering out-of-the-box solutions designed for higher education industries) and prevero (a provider of Financial Planning & Analysis solutions, known for delivering AI based forcasting to the office of the CFO).
UNIT4 Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying UNIT4 applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of UNIT4 and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Unit4 Business World, Unit4 Financials, Unit4 Prevero (CPM), Unit4 Student Management, Unit4 PSA Suite customers.
Ownership: - Advent International
Number of Employees: 2500
Functional Market: Absence and Leave Management, Task Management, Core HR, Payroll, Benefits Administration, Pension Administration, Compliance, Learning and Development, Succession and Leadership Planning, Compensation Management,
Key Verticals: Aerospace and Defense, Banking and Financial Services, Communication, Construction, Real Estate, Distribution, K12, Higher Education, Federal Government, State and Local Government, Public Safety, Healthcare, Life Insurance, P&C Insurance, Specialty Insurance, Leisure and Recreation, Hospitality, Manufacturing, Media, Faith Based Nonprofit, Youth and Elderly Care Nonprofit, Special Cause Nonprofit, Oil and Gas, Professional Services, Retail, Transportation, Utilities,
UNIT4 Key Cloud and HCM Applications
Unit4 Business World, Unit4 Financials, Unit4 Prevero (CPM), Unit4 Student Management, Unit4 PSA Suite
UNIT4 HCM and Cloud HCM Applications Revenues, $M:
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|Cloud HCM Applications Revenues, $M||Subscribe||Subscribe||Subscribe|
* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** 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.
UNIT4 Revenue Breakdown by Type:
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UNIT4 HCM Applications Revenues By Sub-Functional Markets, $M:
Split by Sub-Functional Markets
2019 HCM Revenues, By Sub-Functional Markets, $M
UNIT4 HCM Applications Revenues By Verticals, $M:
UNIT4 Total and HCM Applications Revenues by Region:
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UNIT4 Direct vs Indirect sales
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UNIT4 Customers - Breakdown by Geo, Size, Vertical and Product
No. of UNIT4 Customers: 5000
No. of UNIT4 HCM Applications Customers: 1000
No. of UNIT4 Cloud HCM Customers: 500
No. of UNIT4 Cloud HCM Subscribers: 3 million
Unit4 has more than 5,000 customers and more than a million users. A majority of its customers are in the professional services organizations and public services verticals. Unit4's core ERP is used by over 2,700 organizations worldwide.
In 2019, Unit4 marked increased number of customer wins in the Nordics. Some of them are: Försvarets Materielverk, The Norwegian Post, Swedish municipality Alvesta, Titania in Sweden, and others. Other most recent customer wins include: University Canada West, Toronto School of Management, DOF, IES Abroad, Niagara Parks Commission, Gloucestershire Constabulary, International Fund for Animal Welfare, The city of Port Coquitlam, Stanley Security, War Child, Bravida, and many more.
UNIT4 Market Opportunities, M&A and Geo Expansions
In October 2019, Unit4 unveiled a new People Planning and Analytics solution for organizations to create detailed people plans, especially for contingency planning in leave and absence management. It combines its prevero analytics tool with the core HR and finance products to provide deeper, more real-time insights into people constraints and trends. The full HCM offering includes payroll and the acquired Intuo employee engagement tool.
Earlier Unit4 started with a new Smart Automation Services for Unit4 Business World ERP customers, representing a major step in the continuous delivery of next-generation automation where people enjoy work more because processes drive themselves. The same month, Unit4 launched new cloud extensions that deliver extended functionality to Unit4 applications quickly and simply. Developed using Unit4's Extension Kit, these microservices-based extensions are available on Github, providing customers and partners with the freedom to develop differentiating front-end applications that benefit from the critical data held in their back-office systems. All these enhancements underscore Unit4's desire to bridge the process-heavy ERP systems with people-centric attributes to accommodate the shifting requirements of an agile enterprise with a new generation of workers and work habits.
Unit4 has a strong partnership with Microsoft and the Microsoft ecosystem and is aligning itself with the Microsoft platform by adopting products like Azure, SQL Server, Power BI and natural language interfaces to power its Wanda digital assistant. A key growth driver lies in its People Platform, which is based on Unit4's domain expertise in addressing people skills issues through easy to use and deploy software.
There is plenty of room to grow by improving the skills of services industries through the use of better corporate insights, improved processes from expense management to reporting, as well as digital assistants that can remove frictions involving tasks such as search, discovery and matching and purging redundant business records and transactions. That's where the acquisition of Prevero and its launch of Wanda digital bot come in handy.
In professional services, Unit4 FP&A has done well-helping organizations maximize value from project-based planning initiatives. The Wanda chatbot, built on Unit4's People Platform with help from Microsoft's Language Understanding Intelligent Service, delivers a conversational user interface that guides Unit4 ERP customers to complete tasks such as making absence requests for employee self-service and generating timesheets based on multiple data streams and GPS and beacon location data to track time.
In 2020, Unit4 announced in March it would provide its employee engagement tool and out-of-the-box FP&A to companies free of charge during the COVID crisis, to help companies stay engaged with their people and support professional planning. Also, Unit4 announced partnership with Arribated and lter on Raven Intel.
UNIT4 Risks and Challenges
In July 2020, Kerridge Commercial Systems (KCS) has acquired Unit4 Wholesale. Unit4 Wholesale is an ERP package for automating (wholesale) trading companies and distributors in the Benelux. Some forty years ago Unit4 started with this; the basis is the wholesale package Omnivers, later renamed Agresso Wholesale and subsequently marketed under the name Unit4 Wholesale. Unit4 has sold various parts under the leadership of CEO Mike Ettling in recent years, but has also made a few acquisitions. The company wants to focus on providing business software to the professional services sector (worldwide) and a Dutch branch that focuses (sometimes local) solutions on accountancy, education, non-profit sector and government.
The back-to-back acquisitions of Intuo and JSKS suggested that Unit4's investors are shoring up its product development and HCM strategies, perhaps as a prelude to bolder steps to reinvent the company. The good news is that the commitment is firm and clear, but the lingering question is its ability to deliver on its vision.
After Unit4 went private in 2014 by becoming part of PE firm Advent International's investment portfolio, the vendor has gone through a series of management changes and product reboots. Its cloud migration is gaining traction, but far from complete. Many of its customers are accustomed to running its applications on-premise and they will stay there for a few more years. The upside potential is enormous given how diversified its installations have become. What's holding back Unit4 is its ability to execute at a time when drastic measures are commonplace among its rivals. Most ERP vendors reckon the time for change is being compressed because the window of opportunity is likely to close over the next five to 10 years.
UNIT4 Ecosystem, Partners, Resellers and SI
As part of its strategy to strengthen its client services, and following suit of most major software vendors such as Oracle, SAP and Microsoft, Unit4 has launched a Global Partner Program to provide training, resources and support to its global ecosystem of partners to help their clients deliver an exceptional people experience to their customers under the leadsership of Beata. With the 2019 appointment of Beata Wright as EVP/Global Head of Partner Ecosystems, Unit4 is expected to boost its partner ecosystem strategy and deliver additional, best of breed cloud solutions and services to companies around the world.
In addition Unit4 is laying the groundwork for a diversified services portfolio by signing business process outsourcing partners and beefing up domain expertise for shared services engagements. All these initiatives could result in a comprehensive ecosystem capable of generating more than a 1-billion in total revenues over the next three years.
Providing local access to sales, service and support, Unit4 has operations in Australia, Austria, Belgium, Canada, Denmark, Estonia, Finland, France, Germany, Hungary, Indonesia, Ireland, Malaysia, Netherlands, Norway, Poland, Portugal, Singapore, Spain, Sweden, UK, United States.
UNIT4 Cloud Platform (PaaS) and Infrastructure (IaaS) Details
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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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