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GS100: 2011 Global Services Compendium
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Because SaaS and cloud are hot concepts in the market, many suppliers are rebranding their hosting or application management or application outsourcing capabilities as SaaS or are claiming their solutions are available ‘in the cloud.’ Much relabeling of more-traditional application outsourcing approaches is occurring.
Mobile Enterprise Applications
Analysts forecast that the Mobile Enterprise Application Market will reach $11.5 billion in 2014. One of the key factors contributing to this market growth is the high adoption of smartphones across enterprises. The Mobile Enterprise Application Market has also been witnessing high growth in customized mobile enterprise applications. However, security issues with Mobile Enterprise Applications could be a challenge to the growth of this market.
Key vendors dominating this market space include Salesforce Inc., Research In Motion, Microsoft Corp, Sybase and IBM Corp.Mid Size Market Adoption
The implementation of ERP systems has helped mid sized corporations, significantly improve their business metrics by process optimization, improving the entire supply chain process and integration across functionality.
Until some time back, most of the mid sized organizations were living with homegrown applications which are non-integrated and on disparate architectures resulting in redundant technology and non- availability of critical information at the right time. The key drivers of introducing an ERP solution in a midsized company are introduction of industry standard processes which are already embedded in the application, adopting integration across business functions leading to transparency, access to real time information etc.
The need for an ERP system can be viewed with respect to the organization objectives, key drivers and finally the choice of solution. The key considerations evaluation and selection of an ERP are scalability, vendor management and reliable service and support.
ERP solutions are designed to grow with the company. Unlike some stand-alone applications, they do not succumb to volume and change pressures, leaving you to start over from scratch. Managing a plethora of vendors for customer service is not easy. The ability to access affordable service and support is critical. It is easier to support an integrated ERP environment than a mixture of different applications.
GS100: 2011 Global Services Compendium
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Outlook
GS100: 2011 Global Services Compendium
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The ERP market recovered fairly well in 2010 from the midrecession activity levels of 2009; the market will continue to grow in 2011, but will gradually shift from a licensed to a subscription model over the next five years. Vendor consolidation, industry specialization, and the introduction of newer technologies that improve business process flexibility will further change the vendor landscape.
License revenue will start to fall by 2015 and maintenance revenue will be on the rise. Utility-based offering will be on rise as cloud and SaaS will be major players in ERP implementation. Subscription revenue will pick up as SaaS ERP revenue
SAP is planning to launch SAP app store like Apple’s iTunes store. Nonetheless, SAP’s Business ByDesign SaaS solution is again getting a lot of visibility. SAP Business ByDesign is a complete, fully integrated business management solution delivered on demand. SAP will also use the Business ByDesign platform to build its line-of-business, on-demand applications for large companies, and use the App Store model to develop and sell add-ons for customers.
That said, while SaaS ERP systems are still years away from capturing a significant portion of the ERP market among midsize to large organizations, CIOs will continue to look at other cloud computing options. Hosted ERP solutions and outsourced IT infrastructures will likely be on the minds of many CIOs. In addition, although larger companies may not yet be in a position to adopt enterprise-wide SaaS models, they will continue to evaluate targeted SaaS solutions, such as Document Management Systems (DMS), Human Resource Systems (HRM/HCM), Product Lifecycle Management (PLM), and Customer Relationship Management (CRM).
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