ERP market turning around: new leaders
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The ERP market is set to grow again, starting at 3% for the next four years – up from 1% before and –1% in recent years. And that growth will take it from the current $13.4bn to $15.8bn. Brian Tinham reports
The ERP market is set to grow again, starting at 3% for the next four years – up from 1% before and –1% in recent years. And that growth will take it from the current $13.4bn to $15.8bn.
So says analyst AMR Research. And the firm’s senior US researcher Bruce Richardson says those figures only include core ERP functionality of financials, manufacturing and order management – not extensions like customer management (CRM), supply chain management (SCM and SRM) or product lifecycle management (PLM), which are themselves moving up.
The figures reflect manufacturing business growth in the US, UK and Far East in particular.
Richardson also observes that the new fortunes are coming for a new ‘big five’: yesterday’s JBOPS (JD Edwards, Baan, Oracle, PeopleSoft and SAP) is today’s SPOMS (SAP, PeopleSoft, Oracle, Microsoft and Sage).
Together, these account for a staggering 72% of total ERP sales revenue. Interestingly, he notes that with Microsoft and Sage focusing on the manufacturing SME sector, there may yet be more movement in the big league.
Richardson is impressed with what he sees as the “no frills model” as a strategy for SMEs – with the VARs focusing on the clever stuff, while Microsoft and Sage go for increasingly able, configurable core systems. Think of Ryanair and Easy Jet.
Incidentally, AMR rightly points to the likes of SSA, with its clutch of ERP acquisitions, as one to watch in the rankings, with high flyer IFS forging on with organic growth.