ERP spending to slide up

Businesses in Europe will be spending 7% more per annum on ERP systems, according to analyst AMR Research. The firm’s Market Analytix Report, Enterprise Resource Planning 2004-2009, suggests that consolidation of the software vendors will leave 72% of IT revenues in the hands of just five companies – SAP, Oracle, Sage, Microsoft and SSA Global. AMR suggests that trailing the top five in revenue terms will be Geac, Intentia, Lawson (the latter two now merged) and Infor Global Solutions. It notes that while many ERP vendors struggled last year, SAP increased its revenues by 17% without any acquisitions. It also observes that Oracle nearly doubled the size of its application business through the acquisition of PeopleSoft and JD Edwards. While AMR’s detailed forecast and ranking is debatable, the overall expectation feels right. The latest study by Benchmark Research in the UK shows 225 of manufacturers planning to upgrade their existing systems and 14% looking for new systems.