QAD ready for 5G age with ERP
Manufacturing software company QAD recently released the newest addition to its software as it prepares for a future with 5G-connected factories.
QAD specialises in one product, a cloud-based enterprise resource planning (ERP) software that helps manufacturers manage invoicing, supply chains, taking orders, shipments and storage. The company also supplies services to these companies like data analytics and software servicing.
Last year, the company made US$335 million in revenue. Purchases of its cloud software achieved a 43% compound annual growth rate in 2018, and 30% growth is forecast this year. The growth comes from customers switching over from the company’s older non-cloud software, as well as new customers. But the non-cloud software segment continues to shrink as more customers move their data to the cloud.
About half the growth in cloud services comes from existing customers converting to the cloud, while the other half comes from new customers.
The US-based QAD has been in Thailand for 30 years and employs seven people in the country. Globally, QAD has about 400 employees in 52 countries, handling 35,000 users.
“We see Thailand in a pretty dominant position as a parts supplier,” said Anton Chilton, chief executive of QAD. “Thailand is the heart of manufacturing in Asia-Pacific, and we see growing revenue streams from Thai companies.”
While companies using unlicensed or pirated software is a huge problem in Asia, with the Business Software Alliance (BSA) estimating that 60% of software used in Thailand are unlicensed, QAD says they don’t worry about the issue.
“Unlicensed software hasn’t been a problem for quite some time,” said Pamela Lopker, founder and president of QAD. “Customers and companies that start to use our software without buying it, sooner or later are going to need our help to service or update the software.”
By constantly updating and improving the ERP software, the company is able to adapt to rapidly changing trends in the manufacturing space and facilitate the transition into smart factories. Already these manufacturing bases are becoming more interconnected and data driven over a common network, a trend that is expected to be accelerated with the adoption of 5G technology.
“With 5G, we will get data more quickly from smart products, but that said, it is still a question of timing when 5G will be stable and reliable enough for industrial uses,” Ms Lopker said.
QAD’s software is already prepared for smart manufacturing with machines connected through a network of Internet of Things devices, she said. The future trend she expects is “additive”, using 3D printing manufacturing, whereby future factories will be able to produce any custom-made component.