Tier 1 ERP vendors are developing new flexible deployment models and on demand web based applications that bypass the pains and hurdles associated with upgrading systems. Tier 2 ERP vendors are also getting into the action with acquisitions in the ERP procurement
ERP Software Solutions
The giant ERP vendors have lost a lot of incredible opportunities to capitalize on the spend management application market over the past 5 years to smaller competitors but that may all change this year.
Tier 1 ERP vendors are developing new flexible deployment models and on demand web based applications that bypass the pains and hurdles associated with upgrading systems. Tier 2 ERP vendors are also getting into the action with acquisitions in the ERP procurement applications space to compete in the spend management ERP market. Historically Fortune 500 companies were looking at an incredibly complicated enterprise system monster, with a total cost of ownership of nine figures when combining all the integrations and resources dedicated to a full ERP software implementation above and beyond software costs. This complex interconnection across business units that were tied to the back end limited the ability of the functional business groups to purchase or upgrade to the latest spend management technologies and ERP applications available on the market even if they wanted it.
However in a relatively short order the large Tier 1 ERP vendors have releases applications with flexible deployment capabilities enabling companies to bypass tying in back-end upgrade or deployment to an ERP procurement (spend management) technology application. ERP vendors are also changing their pricing models and becoming more creative by allowing users to pay as they go, similar to software on demand and other SaaS, software as a service, web-based ERP modules and CRM applications on the market.
Other Tier 2 ERP vendors are beefing up their executive level talent with best of breed experience to compete and capitalize on the growing demand of their customers for solutions that better enable them to manage their spending budgets and help their manager make better decisions to maximize their valuable resources and getting the most out of their tightening budgets.