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Unit 7: ERP Market

The fully automated system provided through ERP system increases the revenue of the notes
organization in billions. Nowadays, most of the businesses have been beating paths to open
the doors of ERP system. As the demand increases, the number of ERP vendors in the market
increases and it will grow to 40-60 percent within next five years. Some of top – tier ERP vendors
are SAP AG, BAAN, PeopleSoft, Oracle Application and J.D.Edwards.
These companies are covering the major ERP market revenue. It is estimated that business around
the world is now spending more than $ 10 million per year on ERP systems and associated
consulting expenditures.
In this unit, you will see the profile of some of the top vendors of ERP market. Each ERP vendor
offers some special features. The references given in this unit has been from Enterprise Resource
Planning – Alexis Leon and Internet.

7.1 erp market

The ERP market is a very competitive and fast growing market. According to AMR Research the
enterprise resource planning (ERP) market is experiencing double-digit growth in 2007, and is
expected to continue to grow at an average of 10% over the next five years.

The ERP market saw solid growth in 2004, even as the vendor landscape continued to consolidate
Going forward SAP is expected to boost overall growth of this market as its share approaches 50%
offsetting flat to declining revenues of several mature, mid-size vendors. Oracle’s acquisition of
PeopleSoft and JD Edwards may limit near term license revenue growth due to product overlaps
and customer hesitancy to commit to add-on purchases until project fusion is more clearly defined
and upgrade paths are evaluated. The mid-market remains a fertile area for growth as well as a
key competitive battleground with industry specialization representing the best opportunity for
differentiation.
The ERP market continues to benefit from a widespread acceptance of the idea that business
must have integrated information systems to be competitive. The integrated best-of-breed debate
still goes on in some organizations, but the suite advocates are clearly winning. AMR Research
predicted that the would grow about 14% in 2006, from $25.4 billion to $29 billion in 2007.
erp market share

The ERP market has grown in revenue, but consolidation continues to change the industry. in
1999, the top five vendors in the ERP market accounted for 59% of the industry’s revenue. APR
Research expects the top five vendors in 2005 (SAP, Oracle, Sage Group. Microsoft, and SSA
Global) to account for 72% of ERP vendor total revenue. The trend has remained the same in 2007
also the top position occupied by SAP, Oracle, Sage Group, Microsoft, Infor Global Solutions,
etc.
figure 7.1: erp market share in 2006

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