Magic Quadrant Redefinition of the midmarket is causing changes in vendor positioning. Enterprises should be aware of how increasing competition and e-business are affecting this market and what this will mean for vendor success or failure. Midmarket enterprises are leveraging e-business to increase sales, improve customer satisfaction, make the supply chain more efficient and raise employee productivity. Coupled with the need to integrate data with customers' and vendors' external systems, this is forcing vendors to rewrite and rearchitect their products.
ASPs provide application services over a network via rental or subscription pricing.
The consolidation of vendors does not necessarily mean the immediate end of individual product lines. Solomon is being continued as a separate Great Plains product line, as is SQL Financials for Geac Computer. Vendors have been removed from the Magic Quadrant for a decline in ability to address the North American market. Systems Union's retreat from the North American market and Flexi International Software's lack of new product sales have resulted in the removal of these two vendors. Leaders provide technology and performance at a suitable price point for midmarket enterprises, while offering functional breadth and depth.