Alive and Kicking

Even since the pre-Y2K ERP build-up, conventional wisdom has held that big software systems are on the way out. Open source solutions and  software as a service (SaaS) providers, among other reasons, have put pressure on ERP vendors to come up with new ideas. In SAP’s case, for example, they are planning on the SME business to provide substantial revenue over the coming years.

So, I was surprised to read that Tekrati is reporting on research from Arc Advisory Group, stating that the ERP market will grow at a compounded annual rate of 4.8 percent over the next five years. While China and India will be contributors to this growth, they are not the only source.

From the report:

There always has been a need for integrated solutions, especially when talking about an integrated enterprise from the plant floor up to the executive offices. With the continued demand on acquisitions, along with the programs to address the Small-Medium Business (SMB) market, systems integration is a necessary evil between ERP and other enterprise solutions. Integration has been difficult, but SOA provides value to the enterprise by freeing key pieces of business functionality from individual systems, and making them available for integration with other applications.

Given this prognosis for big ERP growth, it looks like the implementation failure business will also remain robust.