Figures from Forrester released last week are forecasting that the ERP market will continue to steadily grow and that organisations are being presented with more options than ever before in how exactly they want to deploy it http://enterpriseapplications.cbronline.com/news/erp-market-to-grow-to-503bn-in-2015-forrester-060511. Certainly this seems to ring true for SAP users.
A growing market demonstrates more confidence in the technology and a greater incentive for software providers to continue to innovate. A particularly interesting statistic from Forrester is the growth in Software as a Service and managed cloud offerings. With growth of 21% annually forecast through 2015, it seems that many more organisations will be looking to the benefits of the cloud for ERP: for example, lower up-front costs and the attractiveness of an on-demand service model.
Of course, this growth doesn’t mean that the cloud is right for everyone. As with anything to do with ERP, organisations need to decide which action best benefits their business processes: balancing risks, costs and everyday practicality in order to decide if a process is safe in the cloud or belongs in-house. I’d suspect that most organisations will choose a hybrid approach, placing some processes in the cloud and keeping others firmly on-premises. Of course, as cloud services evolve and improve the balance will doubtless change but in the meantime users should investigate the options and choose what’s best for them.
We’ll then see in four years’ time whether Forrester’s predictions are correct!