Flat Growth Stalls ERP In 2009, Gartner Says

Whereas SaaS has experienced significant growth, the growth of ERP software delivered as a service is relatively flat, Gartner says. Gartner Research Director Sharon Mertz says the SaaS model does not lend itself well to various ERP categories, including asset management and capital management, in the manufacturing industry because many of its processes are highly customized and involve robotics and other sophisticated gear.

Aneel Bhusri, co-founder and co-CEO of SaaS ERP provider Workday, agrees saying:

With existing ERP suites, many companies are reluctant to remove the installed software and start over with SaaS because they've already invested considerable resources, not only in upfront costs but continued spending on customization and support. SaaS ERP adoption is higher among SMBs, but it's a highly fragmented market. SaaS ERP providers are beginning to move upmarket, by pitching their products for departmental deployments, but companies don't typically think of purchasing ERP software that way.

For those looking at EPR software, take a look at this ERP Supplier Comparison that IT Business Edge contributor Dennis Byron created earlier this year.

There are also a handful of SaaS resources in the Knowledge Network, Here are links to few of them:

• Software-as-a-Service (SaaS) Checklist
• SaaS vs. On Premise TCO Calculator
• SaaS Primer