2009 Readers' Choice Survey: Enterprise Resource Planning
Last year, growth in the Enterprise Resource Planning (ERP) market looked promising. AMR Research predicted that 47 percent of large enterprises would increase their ERP budgets, and 48 percent of midsized companies would do the same. But the economy has changed and so have predictions for growth in this category.
"Overall ERP market revenue is likely to be flat or even decline slightly in 2009," predicts Jim Shepherd, senior vice president, AMR Research. "Market leaders will be lucky to generate much growth, but they are helped because they have very large installed bases that generate the majority of their license, maintenance and services revenue."
In the near term, ERP suite vendors will expand to cover a broader range of applications, including human resources, supply chain, product lifecycle management, and even travel and expense management or real estate management. At the same time, vendors may change the packaging of these suites to facilitate buyers to purchase and deploy individual modules or functional areas.
"In an economic downturn, expect consumer goods companies to have less of an appetite for major suite purchases and be more inclined toward smaller, departmental projects that require less capital and offer faster payback," says Shepherd.
Over the next five years, providers are anticipated to develop and package ERP products for specific vertical markets. "We are likely to see specialized solutions for health and beauty products, food products, consumer electronics, etc.," reports Shepherd.
Despite difficulties raising capital, Shepherd also expects to see significant merger and acquisition activity next year: "Smaller companies will look for buyers as their cash dwindles, and low company valuations will make them very attractive for either large software vendors with plenty of cash or private equity firms looking to expand their portfolios."
He adds that niche application vendors in areas, like inventory optimization, should be attractive, and big ERP vendors are always looking for vertical applications that can fill out a solution or add marquis customers.
BREAKOUT FAVORITES
Customer Experience: Oracle
"We have been able to implement standard, enterprise-wide business processes from the front office through distribution, and now look to leverage the visibility and insight across our enterprise to make informed business decisions that benefit both Welch's and our business partners."
-- Ray Gosselin, CIO, Welch's
SMB Market: SAP
"We are a different company every six months. We need to work a lot smarter, not just a lot harder -- that is why we decided on SAP."
-- Joseph (Jody) D. Giles, VP Retail & CIO, Under Armour Inc.
| Top 5 |
| 1. SAP |
| 2. Oracle |
| 3. Microsoft Corporation |
| 4. Infor Global Solutions |
| 5. QAD |
"Overall ERP market revenue is likely to be flat or even decline slightly in 2009," predicts Jim Shepherd, senior vice president, AMR Research. "Market leaders will be lucky to generate much growth, but they are helped because they have very large installed bases that generate the majority of their license, maintenance and services revenue."
In the near term, ERP suite vendors will expand to cover a broader range of applications, including human resources, supply chain, product lifecycle management, and even travel and expense management or real estate management. At the same time, vendors may change the packaging of these suites to facilitate buyers to purchase and deploy individual modules or functional areas.
"In an economic downturn, expect consumer goods companies to have less of an appetite for major suite purchases and be more inclined toward smaller, departmental projects that require less capital and offer faster payback," says Shepherd.
Over the next five years, providers are anticipated to develop and package ERP products for specific vertical markets. "We are likely to see specialized solutions for health and beauty products, food products, consumer electronics, etc.," reports Shepherd.
Despite difficulties raising capital, Shepherd also expects to see significant merger and acquisition activity next year: "Smaller companies will look for buyers as their cash dwindles, and low company valuations will make them very attractive for either large software vendors with plenty of cash or private equity firms looking to expand their portfolios." He adds that niche application vendors in areas, like inventory optimization, should be attractive, and big ERP vendors are always looking for vertical applications that can fill out a solution or add marquis customers.
BREAKOUT FAVORITES
Customer Experience: Oracle
"We have been able to implement standard, enterprise-wide business processes from the front office through distribution, and now look to leverage the visibility and insight across our enterprise to make informed business decisions that benefit both Welch's and our business partners."
-- Ray Gosselin, CIO, Welch's
SMB Market: SAP
"We are a different company every six months. We need to work a lot smarter, not just a lot harder -- that is why we decided on SAP."
-- Joseph (Jody) D. Giles, VP Retail & CIO, Under Armour Inc.