Totvs, IBM units join forces to offer ERP in the cloud

Monday, May 30, 2011

The Chilean units of Brazilian software development group Totvs (Bovespa: TOTS3) and IBM (NYSE: IBM) have joined to offer software as a service (SaaS), the companies announced.

Under the partnership, Totvs will provide ERP solutions over IBM's cloud computing offer, making IBM responsible for the sale and hosting of Totvs' ERP from its services center. In turn, Totvs is responsible for implementing the application.

"There is a growing demand for the "pay as a service" model, and under this model, the cloud ERP offer is attractive for the midsized company because it doesn't require investment in assets like infrastructure and hardware, or in personnel," said Totvs Chile manager Arturo Arancibia. At the same time, with the solution, "you don't have to give up the use of technological solutions that provide more business intelligence. This reinforces the provision of an integrated hosting and cloud ERP services solution."

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Totvs posted a net profit of 33.5mn reais (US$21.1mn) in the first quarter of the year, climbing 20.5% compared to the year-ago period, while revenues reached 305mn reais, up 17.1%. Operating in verticals such as education, government, health and retail, it is considered the sixth largest integrated business management company in Gartner's ERP-Suite providers ranking. In Brazil, it has a 48.6% market share.