AMR Research released the “Midsize ERP Spending Report, 2007-2008,” which found midsize enterprises will increase their ERP budgets by 5.1% on average in 2008.
Growth in ERP spending was fueled by several factors. As midsize organizations fight for market share against increasingly diverse global competition, increased profitability, revenue growth, and customer satisfaction become priorities. And, with globalization, the pool of potential customers is ever-growing, creating a need for streamlined processes to help meet demand.
The survey found an increased interest in pure software-as-a-service (SaaS) and on-demand purchasing models. 39% of larger midsize companies (500-999 employees) are planning to purchase SaaS or on-demand software in 2008. And the numbers are rising. AMR Research predicts that over the next three years these new purchasing models will become a mainstream purchasing method.
In addition, by 2010, 43% of companies would like to employ a single, global financial and shared services ERP system.
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