Puerto Rican government agency claims Infor's negligence cost it $9 million

Infor failed to properly maintain a software system used by the Puerto Rican tax authority, a new lawsuit claims

By , IDG News Service |  Software

While it is "certainly plausible" that key personnel left Hansen after Infor acquired it, it is equally possible that the authority's demands to Infor were unreasonable, and it's impossible to judge the situation without Infor's side of the story, said analyst Michael Krigsman, CEO of consulting firm Asuret.

"However, this case bears striking similarity to others in which a services provider or software vendor becomes stretched too thin due to lack of qualified resources," he added. Often during the buying process, customers focus too much on software features, and not enough on the services they'll need to install it, Krigsman said.

Private-equity-backed Infor is one of the software industry's largest ERP (enterprise resource planning) vendors after SAP and Oracle, with close to $3 billion in annual revenue. It achieved that growth in part due to a long string of acquisitions, from smaller ones like Hansen to 2011's roughly $2 billion purchase of Lawson Software.

Infor's growth pattern has earned it a reputation of being more of a holding company than a traditional software vendor with a focused product agenda, but that image has started to wane under the leadership of former Oracle president Charles Phillips, who became CEO in October 2010.

While Infor has continued making acquisitions, it has also hired hundreds of developers and launched a next-generation set of applications and middleware.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

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