Enterprise Resource Planning Assignment Example | Topics and Well Written Essays - 2500 words

Enterprise Resource Planning - Assignment Example "The ERP market showed solid organic growth in 2004 as IT spending improved," says Jim Shepherd, vice president of research at AMR Research. "The market was also affected by consolidation within the segment, as well as ERP vendors acquiring best-of-breed players to broaden their portfolios." The top ten ERP vendors by revenue are in the following order: SAP, Oracle, PeopleSoft (acquired by Oracle December 28, 2004), Sage Group, Microsoft Business Solutions, SSA Global, Geac, Intentia, Lawson, Infor Global Solutions. The report, "The Market Analytix Report: Enterprise Resource Planning, 2004-2009", delivers revenue and growth rates for the top ERP players as well as growth forecasts through 2009. AMR Research expects the enterprise applications market to grow from $47.8 billion in 2004 to $64.8 billion by 2009. SAP has had a solid reputation and has been the market leader and its revenues grew from about $8 billion in 2003 to about $9.4 billion in 2004. That amounts to a 17 percent increase in revenue, with software licenses up by 20%. SAP reached these figures without any major acquisitions. Being a viable alternative to confused customers who were witness to the Oracle and PeopleSoft takeover saga, it benefited by luring their customers towards its products. When it is all said and done, SAP-owned 40 percent of the market for ERP software in 2004, says AMR, which predicts SAP will own 43 percent of the market by the end of 2005. To do this, SAP must grow revenues 11 percent this year to about $10.4 billion. The sap is growing very well and is expected to gain more than twice the revenue and market share of Oracle by the end of 2005.Before the hostile takeover of Peoplesoft by Oracle in 2003, PeopleSoft was the second largest ERP vendor with 13 percent of the market, and Oracle was a clos e third with about 12 percent of the market. In 2004, the combined market share of those two vendors dropped two percentage points to 22 percent, and in 2005, the combined Oracle-PeopleSoft will drop three more points to 19 percent of the market, according to AMR. Microsoft Business Solutions garnered a solid 13 percent from $683 million to $775 million, to claim 3 percent of the market. AMR sees the ERP division of the world's largest software company growing revenues by 15 percent in 2005, to $891 million, which would give it a 4 percent share.