Unit4 builds cloud and partner momentum

ERP vendor Unit4 has provided a positive update on its cloud business and revealed plans to expand its partner ecosystem and development capabilities.

While the privately owned company doesn’t provide a full breakdown of quarterly numbers, it stated that year-to-date cloud revenue rose by 16%, and that it remained on target to reach its pre-Covid profitability targets. Note that the company has also stuck to its promise not to implement any redundancies this year as a result of the pandemic.

Unit4, which focuses on people-centric industry sectors including public sector, professional services, non-profit and higher education, unveiled new deals with Social Work England, German market research agency Poseidon Marktforschungs und Servicegesellschaft, and Finnish construction consultancy Sitowise.

Unit4’s under-developed partner ecosystem was made a focus area earlier this year, and there are signs that this is bearing fruit, with the recruitment of three allies: Seattle-based tax compliance automation specialist Avalara; Ireland-based payroll processor Immedis; and Swedish accountancy automation platform Pagero.

The company also flagged up the role of partner Embridge Consulting in supporting a recent £30m contract with the UK’s Surrey County Council to replace its ageing SAP systems – one of Unit4’s biggest ever wins to date. Unit4 stated that the value of contracts that involved the partner ecosystem rose by 65% in the first nine months of the year.

Lastly, Unit4 will also open a new development centre in Noida, India, to complement existing R&D centres in Wroclaw, Poland and Grenada, Spain. The move comes as Unit4 plans the launch of its new ERPx platform at the start of 2021.


PAC’s View

It is no surprise to see Unit4 talk up its momentum in cloud this year, when so many organizations have accelerated their SaaS journeys in order to give them the flexibility and resilience they need to ride out the current storm and build for a new era of hybrid working.

While we expect a double-digit percentage decline in spending on traditional on-premise applica-tion software, SaaS stands out as one area where we expect continued growth this year – our latest figures anticipate an increase of 24% at a worldwide level.

Despite the wider market headwinds, Unit4 is building a very solid platform from which to attack the market with its new flagship platform next year. The reinforcement of the partner ecosystem will be key to fulfilling its ambitions in becoming the digital platform provider of choice in its target industry sectors.

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