Enterprise applications - software typically used by big businesses - will itself remain big business for years, according to a study released by AMR Research.
The enterprise applications market will grow from $US27 billion in 1999 to $78 billion in 2004, a compound annual growth rate of 24 per cent, according to the US study. This growth will be fuelled by enterprise applications for supply-chain management (SCM), e-business relationship management (ERM) and e-commerce, AMR's study predicts.
Enterprise resource planning (ERP) applications made up 64 per cent of the enterprise applications market in 1999 but will fall to less than a third of the market in 2004, AMR's study concludes. The research firm predicts that the ERP market growth will slow to 5 per cent a year, increasing from $16.9 billion in 1999 to $21.4 billion in 2004.
The top five ERP vendors - SAP AG, Oracle, PeopleSoft, J.D. Edwards and GEAC SmartEnterprise Solutions - are in flux and being challenged by new market dynamics, allowing new players to gain ground, according to a statement from AMR. These five market leaders account for 62 per cent of the total market revenue and will find new opportunities in ERM, SCM and e-commerce markets.e-commerce, which made up only 6 per cent of the enterprise applications market last year, will more than triple its share to 20 per cent in 2004, according to the study. AMR predicts companies like Oracle and Broadband will sell $16 billion in e-commerce software in 2004, which is 10 times more than last year's $1.7 billion.