Thinking about ERP and CRM?

Last week in our article, Cloudy Days Are Here to Stay, we took a look at some expert forecasts about the future of cloud computing.  If you are considering a cloud computing solution for your organization, this article offers some great support for the longevity of cloud technology.  Today we are taking a look at a couple of things that go hand in hand with cloud computing: ERP (Enterprise Resource Planning) systems and CRM (Customer Relationship Management) systems.  NetSuite offers both ERP and CRM solutions and much more.  If you are thinking about implementing an ERP and/or CRM system for your company, take a look at the future of ERP and CRM from the expert predictions below.

According to Gartner’s Forecast Analysis: Enterprise Application Software, Worldwide, 2011-2016, 4Q12 Update (Published: 31 January 2013), sales of ERP systems will grow to $32.9 billion in 2016, attaining a 6.7% CAGR (Compound Annual Growth Rate) in the forecast period of 2011 to 2016.   CRM is projected to be an $18.6 billion global market by 2016, attaining a CAGR of 9.1% from 2011 to 2016.   The fastest growing category of enterprise software will be Web Conferencing and Team, growing at a 12.4% CAGR through the forecast period.  

Enterprise application software spending will reach $158B by 2016, with 20.8% being spent on ERP systems, 13.4% for Office Suites and 11.7% on CRM.  The following table breaks out spending by category and CAGRs for 2011 – 2016.  Gartner is projecting that 38% of revenues in the forecast period will be from maintenance revenues, 17% from subscription payments.  Source:  Gartner’s Forecast Analysis: Enterprise Application Software, Worldwide, 2011-2016, 4Q12 Update Published: 31 January 2013

In an article published on Forbes.com, Louis Columbus had this to say about future of ERP systems: “The accelerating, chaotic pace of change driven by customers will force the majority of Fortune 500 companies to reconsider and refine their ERP and enterprise computing strategies.  Social, mobile and cloud computing are combining to provide customers with more acuity and articulation of what their preferences, needs and wants are.  The majority of ERP systems installed today aren’t designed for managing the growing variation and pace of change in customer requirements and needs.  In the next twelve months this trend will force the majority of Fortune 500 companies to re-evaluate their current ERP systems when it becomes clear their existing enterprise systems are getting in the way of attracting new customers and holding onto existing ones.”

SaaS-based CRM will grow three times as fast as on-premises solutions. The compound annual growth rate for all CRM software is forecast to be 9.1% from 2012 through 2016, and 15.4% for SaaS-delivered CRM during the same period. This prediction was taken from the following Gartner article: Predicts 2013: CRM Goes More Cloud, Becomes an App, Has a New Leader and Changes Name (Published: 4 December 2012).

If you are looking at ERP and/or CRM solutions for your organization to the cloud The Vested Group is ready to help.  The Vested Group is a consulting firm located near Dallas, TX that specializes in NetSuite, Cloud Computing, Customer Relationship Management (CRM), and Enterprise Resource Planning (ERP) solutions specific to small to medium sized businesses.  Get in touch with us today to set up a demo!