ERP Solutions

What’s Going to Happen to Enterprise Software Solutions in 2011?

Many analysts have reported that Enterprise Software Solution sales and implementations will slightly peter off in 2011.  Analysts are predicting that the overall spending in the IT area will increase, but the spending on Enterprise Software Solutions will decrease a bit.  These predictions come after a survey was taken of nine hundred companies.  Only twenty five percent of the nine hundred companies reported that they plan to implement, upgrade or enhance their Enterprise Resource Planning or ERP solution in 2011.  A similar survey taken in 2010 concluded that twenty-nine percent of companies surveyed out of nine hundred would implement, upgrade or enhance their ERP solution.  This means that there will be a four percent loss in companies planning to implement, upgrade or enhance their Enterprise Resource Planning solution from 2010 to 2011.  However, this four percent loss is still an increased from Enterprise Software Solutions sold, upgraded or enhanced in 2009.

Thanks to the recent recession, the United States economy is trying desperately to recover.  Companies with Enterprise Software Solutions are stagnant because they don’t want to invest any more of their precious capital on upgrades and enhancements. Companies without an Enterprise Software Solution are leery to invest in one.  However, as these Enterprise Software Solution customers experience expiring support contract, they will need to do something.  Doing something might mean transferring to a cloud based solution or a SaaS (software as a service) solution.  These types of Enterprise Software Solutions cost less because there is no big upfront licensing or implementation fees associated.  Companies struggling to survive are most likely to opt for a cloud based or SaaS based Enterprise Software Solution if they opt for any solution at all.

Two of the most popular ERP vendors, Oracle and SAP, both have some plans in store for product releases this year (2011) they may boost sales.  Oracle is releasing an Enterprise Software Solution called Oracle’s Fusion Applications.  Oracle’s Fusion Applications can be used as an on-site solution or in a cloud environment.  SAP is releasing SAP SaaS applications to be used as an extension to the on-site SAP solutions.  SAP is also planning to release a mobile software application.  However, neither of these companies is banking on these products to make big bucks.  The economy has yet to fully recover and these companies have put things in perspective.

Written by :

kristine H