Product Type: Market Research Report
Published by: AMI-Partners, Inc.
Published: August 2009
Product Code: R149-532Description The enterprise resource planning (ERP) software market has experienced rapid change over the past five years. Maturation at the high-end of the market is driving leading vendors to seek incremental growth in the lesser developed US enterprise mid-market. Many pure-plays have also entered the market with more focused solutions and channel coverage.
As ERP penetration rates settle in the 50-60% range, vendors are shifting their focus to strategies for selling more deeply into the installed base and capturing net-new business around the edges. Core to these efforts are significant investment in creating differentiation in the portfolio with sector-based capabilities and deeper/more robust functionality in under-developed niches.
In this report, we provide perspective on recent performance trends and consolidation in the ERP market and a point-of-view on those segments that could drive the most attractive growth for ERP vendors.
Key points of coverage include:
- Revenue concentration and recent performance of top ERP players
- Five year consolidation trends (acquisition/deal activity)
- Strategic themes driving vendor growth initiatives
- Evolving vendor focus on target industries and applications
- Mid-market ERP adoption trends
- Relative opportunity for incremental growth (penetration) within the small and medium business segments (legacy ERP and untapped firms)
Table of Contents - Contents: Summary Findings
- Summary Findings
- Contents: Market Analysis
- Enterprise Resource Planning (ERP) Definitions
- ERP solutions enable organizations drive continuous improvement strategies by providing a global view into the enterprise
- ERP has evolved in recent years beyond core accounting to touch all business functions
- The market is highly concentrated among the top two players
- Small- and mid-market ERP pure-plays are posting impressive revenue gains
- The ERP industry is coming out of a four year period of high deal volumes and rapid consolidation
- The large share of deals have been targeted, fill-in acquisitions of functional and industry applications
- Sector capabilities tend to become more narrow and specialized within the second- and third- vendor tiers
- Industry growth strategies emphasize three key themes - extend the base business, optimize execution, and launch new business models
- Building depth in the portfolio and extending market reach top vendor priorities
- Alternative product strategies have clear trade-offs in value to the market and upside potential for vendors
- Adoption trends suggest that ERP is a maturing technology
- category within the US mid-market
- Firms invest in ERP to address a variety of business imperatives at all enterprise tiers
- Inventory-intensive businesses lead the market in ERP deployments
- ERP add-on modules have made solid inroads within the installed base particularly in non-service oriented sectors
- Further up-sell potential for ERP add-ons exist in select industries in which the fit is high and penetration relatively low
- Legacy ERP businesses and net-new buyers could provide an addressable market of ~48,000 US mid-market firms
- Adding small businesses to the mix could expand the market opportunity by another 1.6 million enterprises
- Contents: Appendix
- SAP
- Oracle
- Infor
- Sage Group
- Microsoft
- Lawson
- Epicor
- Activant
- IFS
- Exact Software
- CDC Software
- Deltek Systems
- QAD
- NetSuite
- Glovia
- Oracle’s Recent Acquisitions
- SAP's Recent Acquisitions
- Infor's Recent Acquisitions
- Recent Acquisitions of Netsuite, Lawson and Epicor
- Exact's Recent Acquisitions
- Activant's Recent Acquisitions
- CDC's Recent Acquisitions
- QAD's Recent Acquisitions
- Deltek's Recent Acquisitions
- Sage's Recent Acquisitions
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