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Consolidated European ERP Market Records Healthy Growth; On-Demand Revolution Looms, Says IDC
The ERP on-demand segment saw 63% growth in 2006, but with insignificant impact on overall market growth due to the small base. "IDC expects on-demand ERP applications to gain importance over the next five years. While customers might not ask for ERP on-demand today, the changes caused by new delivery models and technologies will transform the ERP market as we know it. New business and delivery models, new partnerships, and focused R&D should be key investment priorities for ERP vendors in 2008," said Lykkegaard.
Based on a strategic review of the top 10 vendors in terms of opportunities and challenges, IDC recommends three strategic priorities. First, for vendors to prepare for new business models, delivery models, and licensing models. Second, to invest aggressively in the broader partner ecosystem to improve market coverage and implementation capacity, and to reduce market risks. Third, to focus R&D investments to ensure market-leading innovation, which is the only path to double-digit growth.
The study, Western European ERP Applications Competitive Analysis 2007 (IDC #LC01Q, January 2008), analyzes the Western European ERP applications market, including size and growth of individual country markets, and ranks vendors by country, functional area, company size, and deployment model. The Future Outlook section reviews opportunities and challenges of the top 10 ERP vendors and the study provides essential guidance on key strategic priorities for ERP vendors.
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