ERP Situation in the market

Found this interesting report by

They have made quite comprehensive study on the ERP situation in the market in 2016.

Here’s some key takeaways.

Average cost per ERP project has gone down in the recent years but on the same time duration has gone up. This can mean that the license costs have come down but for some reason the duration of the implementation project is longer. On the other hand the duration overrun has gone down which means that organizations are better at planning the project.

erp situation

Reasons for implementing ERP system:

Main reasons is to replace old legacy systems.

ERP vendors:

SAP is still leading the race while Oracle is stepping on its heels.

Main reasons for selecting ERP software:

46% Functional fit
25% Great value
13% Common for particular industry

The most interesting part – type of the ERP software implemented

On-Premise solutions are still most popular but Cloud and SAAS has the other half of the pie.

The significant increase in the use of cloud ERP, from
11- to 27-percent, makes sense considering the increasing number of
vendors providing this option. Both SAP and Oracle are investing more research and development in cloud technology than in on-premise software, and other vendors are quickly following.

Cloud business is increasing rapidly and will eat up the on-premise market.

Cloud Usage
A commonly cited benefit of cloud ERP is reduced implementation costs. This year’s respondents reported significant cost savings when implementing cloud ERP software. In fact, more than half (56 percent) of respondents deploying cloud technology reported implementation cost savings of at least 20-percent. Compared to SaaS, cloud is generally a less expensive option over time.

Here you can see that 27% reported 21-40% savings, 11% reported 41-60% savings and 13% reported 61-80% savings compared Cloud ERP to on premise solution.

Report contains many other interesting findings and is definitely worth the read.

But you can start also from here:




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