Bigger Market, More Confusion

It may sound contradictory, but the future of cloud-based ERP is sunny, indeed.

  • International Data Corporation (IDC) estimates the worldwide SaaS enterprise applications market will reach $50.8 billion by 2018, and almost 29% of the worldwide market will be SaaS-based.
  • PricewaterhouseCoopers says global revenue from cloud-based SaaS solutions has already surpassed net new license revenue for traditional on-premises ERP systems.
  • Other analysts predict that over the next few years the Global SaaS-based ERP market will grow at a compound annual growth rate of anywhere from 13.8% to 17.6%.

A new report from Forrester explains, among other things, that the surge in acceptance and demand is driven in large part by the clear business benefits of SaaS applications over traditional on-premises ERP applications, such as:

  • Greater business agility, usability, and insight
  • Ability to quickly support spin-offs and new ventures
  • Ability to meet the requirements of the new digital economy
  • Elimination of the need for upgrades or more hardware
  • Cost-effective replacement of aging ERP systems

But the market opportunity is resulting in something of a cloud-based melee as traditional ERP vendors face off against SaaS pure plays, making it harder for businesses to distinguish between and evaluate the different vendors and technologies.

Cloud_Enabler_Cloud_ERP_KenandyThe Forrester report details the SaaS ERP application landscape. The report filters the noise, explaining the difference between vendors offering traditional ERP solutions in a range of deployment modes, and SaaS-only vendors offering pure-play SaaS applications developed and delivered as SaaS. The report ends with recommendations aimed at helping companies of all sizes evaluate the bewildering landscape of SaaS ERP providers. It is well worth the read.

Download the report for free, right here.


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