The State of ERP
CIO.com has a great new article on a recent survey from Panorama Consulting Group about 670 ERP implementations which Panorama studied. Among the nuggets:
The majority of respondents (77 percent) had chosen a Tier I provider (SAP 35 percent; Oracle 28 percent; and Microsoft: 14 percent). The rest (23 percent) went with the Tier II.
So, what was the total cost of the average EPR implementation? SAP $16.8 million; Oracle $12.6 million; and Microsoft $2.6 million. Tier II average: $3.5 million. (Microsoft’s figure is pretty impressive.)
And how long did it take respondents to fully implement the ERP solution? SAP 20 months; Oracle 18.6 months; and Microsoft 18 months. Tier II: 17.8 months.
Now, the multimillion-dollar question: How satisfied are the executive team and users with the ERP solution? SAP 73 percent (Panorama’s “satisfaction rating”); Oracle 62 percent; and Microsoft 69 percent. Tier II: 70 percent.
Fascinating stuff, especially the low cost of Tier II ERP implementations (NetSuite, etc.) and of Microsoft! I expect SaaS ERP to really begin taking off this year. Now that security concerns have been mostly allayed, the value proposition on turnkey, hosted, no-license-fee ERP is just too good.
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