[ENTERPRISE APPLICATION] Old World ERP Takes on a New AvatarSourabh Chandra Pushp
Utility-based offering will be on rise as cloud and SaaS take roots in the ERP market. Vendor consolidation, industry specialization, and the introduction of newer technologies that improve business process flexibility will further change the vendor landscape for implementation services.
Economic woes had a major impact on how companies chose to implement application solutions during the recession. Companies were forced to cut ERP implementation budgets and duration periods, they nonetheless realized significantly more business benefits from their ERP software than they did in 2009.
While it is good that companies are not spending as much on ERP implementations as they have in years past, the bad news is that many companies are cutting corners in their attempts to do more with less. Even though implementation costs and durations decreased, more companies beginning their projects with unrealistic expectations and are blowing away their budgeted time and resources at an alarming rate.
The Gartner has released a forecast that predicts a 16.2 percent increase in SaaS revenue in the enterprise application market from 2010. The SaaS revenue in the enterprise application software market in 2009 was $7.9 Billion and, according to the analyst firm, it is forecasted to increase to $9.2 Billion in 2010, a solid 15.7 percent increase from 2009, considering the kind of resistance SaaS has been seeing in the enterprises due to concerns over security and integration issues.
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