Many of the world’s largest software companies are investing heavily in enterprise resource planning (ERP) systems as the market value increased to $44 billion in 2023.
Microsoft, Oracle, Workday and SAP are leading the way with leading software products such as Oracle Fusion Cloud and NetSuite; SAP S/4HANA Cloud and Business ByDesign; and Microsoft’s Dynamics 365.
In Gartner’s new 2023 Magic Quadrant for Cloud ERP, the IT research firm ranks the top nine ERP products in the market today for service-centric enterprises.
“No single vendor dominates the market, though for large organizations there are several vendors that account for the majority of new and existing solutions,” said Gartner in its cloud ERP Magic Quadrant report.
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Cloud ERP Market 2023 Snapshot
By 2027, more than 50 percent of enterprises in service-centric industries will look for an ERP suite approach to meet their need for system-of-record capabilities, according to Gartner data.
The ERP market continues to represent a significant portion of the enterprise applications market. According to Gartner, worldwide ERP software revenue grew by 8 percent year over year to a market value of $44 billion in total software revenue.
“Service-centric organizations continue to move ERP platforms to the cloud,” Gartner said. “This is mainly due to the reduced complexity of order-to-cash and supply chains for service-centric organizations compared with product-centric.”
Gartner’s Cloud ERP Magic Quadrant
To make Gartner’s Magic Quadrant list, companies needed more than $75 million in annual revenue in production using their ERP applications, as well as at least 500 customers.
Gartner defines a cloud ERP solution as a suite that is sold as an integrated product that provides functionality around financial management system (FMS), order-to-cash (O2C), source-to-pay, human capital management or other administrative ERP functionality. The Magic Quadrant ranks vendors on their ability to execute and completeness of vision and places them in four categories: Niche Players (low on vision and execution), Visionaries (good vision but low execution), Challengers (good execution but low vision) and Leaders (excelling in both vision and execution).
CRN breaks down Gartner’s rankings of Microsoft, Oracle, SAP, Workday, Sage and Certinia, as well as the strengths and weaknesses of each ERP provider.
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Mark Haranas is an assistant news editor and longtime journalist now covering cloud, multicloud, software, SaaS and channel partners at CRN. He speaks with world-renown CEOs and IT experts as well as covering breaking news and live events while also managing several CRN reporters. He can be reached at [email protected].
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