SAP ERP Ascendant

In the ERP world, which expects double-digit investment in the near future, SAP reigns supreme Oracle growing faster, though

Enterprise resource planning ERP- is the bedrock of e-business, and SAP is the undisputed leader of ERP, according to AMR Research. However, a closer look at the number reveals that SAP archrival Oracle has made plenty of inroads into SAP s business. In 2004, says AMR, SAP had 40 percent of ERP market share while Oracle had 10 percent. In 2006, SAP grew its share of the $29 billion ERP market to 43 percent while Oracle more than doubled to 23 percent. AMR expects the ERP market to demonstrate a compound annual growth rate CAGR- of 10 percent over the next five years. The new business, plus the lucrative renewal market, will keep money flowing into SAP s deep coffers for the rest of the decade and beyond, but the real question is whether Oracle can catch up. Oracle has already bought ERP market share in the form of PeopleSoft and J.D. Edwards, and will now have to rely largely on organic growth to make further headway against SAP. In this battle, one piece of good news for SAP is that 55 percent of AMR survey respondents currently deciding on ERP systems have SAP on their shortlist, while Oracle appears on only 43 percent. As for 2007, AMR estimates that companies will up their ERP budgets by 11.3 percent. AMR Analyst Jim Shepherd stated that, This year and the next will experience levels of ERP investment that we haven t seen since the late 1990s. The ERP surge of the late 1990s was largely an attempt to rip-and-replace legacy systems and prepare for Y2K, but the current ERP spending is driven by a healthy mix of new customers, consolidation projects, add-on applications, and deployment to additional users, concluded Shepherd. Source: line56.coma>

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