Research: 79% using or considering enterprise application software

Enterprise application software is vital for day-to-day IT operations. Tech Pro Research conducted a survey to find out favored vendors, as well as who is using it and why.
Written by Teena Maddox, Contributor

Executive's guide to the future of enterprise apps

Enterprise application software (EAS) may not be the sexiest topic in technology, but in terms of its value and relevance for day-to-day operations it is crucial, forming the backbone that organisations rely on to do business.

EAS is a somewhat nebulous term, meaning different things depending on who you ask and encompassing a broad range of technologies — business intelligence (BI), customer relationship management (CRM), financial and accounting applications, and more. There are many household names among the established EAS vendors, but there are also multiple new vendors springing up to address specific needs.

Last year, Tech Pro Research conducted a survey to learn more about current use and future plans for enterprise apps. Survey participants shared valuable information such as which vendors they used, or were considering using, as well as why. They told us what they liked or disliked about different vendors, and what capabilities they were most interested in.

Fast forward to 2014. Using last year as a baseline, Tech Pro Research conducted a new survey and asked many of the same questions to see how things have changed from 2013. This year, the goal was to determine the current needs and to attempt to predict the future of EAS. Find out what the 196 respondents shared about EAS.

Download the Tech Pro Research research report, Enterprise application software: Future plans, favored vendors and best uses.

The current state of enterprise software

The primary focus of the survey was to find out whether companies are currently using enterprise software, or have any plans to do so over the next year. Figure A, as seen below, illustrates that 50 percent of all survey respondents are currently using some type of enterprise software — a decrease of 3 percent from the previous year. That breaks down to 34 percent who responded that they are currently using an enterprise software solution, and another 16 percent who indicated they are not only currently using enterprise software, but are also considering additional enterprise tools in the next 12 months. It is notable, however, that the percentage of organizations currently using an enterprise solution dropped from 40 percent to 34 percent.

If you factor in the 29 percent who responded that they're not currently using any enterprise software, but are actively considering adopting enterprise applications in the next 12 months, that 50 percent will jump to nearly 80 percent by this time next year if they follow through with adding EAS. Only about one in five companies seem to have zero interest in enterprise software right now.

figure a
Figure A

More large companies using EAS

As in last year's survey, the data shows a distinct and direct correlation between the size of a company and its use of enterprise application software. The overall numbers are very similar to last year: 75 percent of companies with 1,000 or more employees report using enterprise software  — an increase from 68 percent in 2013.

The two intervening categories — 50 to 249 employees, and 250-999 employees — both increased from last year as well with 63 percent using enterprise software. There was a drop, however — from 32% to 28% — among companies of fewer than 50 employees, as seen below in Figure B. 

Figure B

Satisfaction levels remain high

Respondents are quite satisfied with their EAS software, as they were last year. As seen below in Figure C, 26 percent said the were 'Very satisfied', while another 61 percent answered 'Somewhat satisfied'. That means that 87 percent of those using enterprise software are at least reasonably happy with what they've got. Last year, 76 percent of respondents reported being satisfied with their enterprise software.

figure Cc
Figure C

Overall, there's plenty of good news for EAS vendors in the 2014 report. However, there are some things for them to look out for — notably cloud services threatening the continued growth of enterprise software.

Other EAS topics covered in the survey include:

  • Favored vendors
  • Reasons for satisfaction with software
  • Reasons for dissatisfaction with software
  • Favored applications
  • Predicted trends
  • Cloud services as an alternative

To read more on the subject, download the full Tech Pro Research report, Enterprise application software: Future plans, favored vendors and best uses. The report is free to all Tech Pro Research subscribers.

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