ERP company consolidation shows no sign of abating

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Competition and consolidation will continue to hot up among ERP vendors, with Oracle but also Sage biting at SAP’s heels, according to a study by analyst IDC.

SAP was the overall leader across all industries in Europe in 2005, it says, but adds that at the country level, Oracle and Sage are now challenging in sectors like communications, finance, business services and retail, particularly in the UK and France. “Oracle leaped ahead in its focus industries with its acquisition of PeopleSoft, while Sage has improved its position across most verticals via its domination of the SME company segment in Europe, driven by acquisitions and organic growth,” says Bo Lykkegaard, programme manager at IDC. Manufacturing makes up 40% of the total ERP applications market, while retail is the third largest, leaving financial services and communications making up only 15% combined. Like most pundits, IDC sees further consolidation ahead in the ERP applications market, citing Infor’s recent acquisitions of SSA, Geac and Systems Union as the best example.