The enterprise software market in Brazil is led by local firm Totvs and SAP, according to new research by Brazilian business school Fundação Getúlio Vargas about the local information technology market.
The report, which polled more than 2,600 businesses nationwide, shows Totvs as the leader with 33% of the overall ERP market. The Brazilian company is closely followed by SAP: the German software giant has a 32% slice of the market, according to the FGV study, now in its 31st edition. Oracle ranks third, with a market share of 12%.
When compared with the results of the same survey in 2018, the new numbers show an interesting shift in the competitive landscape between the three technology firms: three years ago, Totvs had a 35% of the ERP market, SAP had 31% and Oracle had 15% of the enterprise software business in Brazil.
However, the current Totvs-SAP situation changes when it comes to small and medium enterprises (SMEs). In this segment, Totvs is still a clear leader: systems provided by the Brazilian firm are currently present in nearly half of businesses with less than 800 workstations.
According to the study, SAP's footprint in Brazil is greater in larger companies: within businesses with more than 800 users, SAP's market share reaches 50%, while Totvs retains 19% of this segment.
Related numbers cited in the FGV study highlight greater use of intelligence tools, which encompasses business intelligence, data analytics and customer relationship management software. SAP solutions are in place at 25% of the organizations polled, followed by Oracle (16%), Totvs (15%) and Microsoft (13%).
A noteworthy development cited in the study is the growing adoption of Qlik systems, adopted by 13% of respondents. Five years ago, the company had a low single-digit market share.
Other findings of the survey relate to IT investments made by medium and large companies, which correspond to an average of 8% of revenue. However, the percentage is greater among banks (15.7%), while IT investment as a percentage of revenue is 4.8% in manufacturing and 3.8% in retail.