Economic recession has affected every industry and ERP software market had to re-examine its working. The major industries of the world have faced revenue issues and companies are forced to lay off employee. In the current market situation, organizations are reluctant to spend heavily on ERP software maintenance. The cost of this software is undergoing many changes. Many enterprise resource planning software companies are redefining the need for software.
Major players of ERP industry are Oracle and SAP. Both the companies are looking toward new trends in software industry. One of the major clients of enterprise resource planning software, Siemens questioned the expenses made on ERP support service and maintenance. The software companies which provide these solutions are finding it difficult to sustain their market with the current level of expenses on maintenance and implementation of the software.
Many industries are searching for alternatives to prevent the huge implementation and service cost demanded by the software companies. One of the upcoming trends in ERP software is Software-as-a-Service. Recession created a demand for low cost enterprise resource planning service. The market is getting many requests from businesses ranging from small organizations to big companies to have strategies and systems, which are cheap as compared to the traditional enterprise resource planning software.
There are many other trends in enterprise resource planning market, which is getting noticed by major ERP players. Some common trends in enterprise software market are:
1. Competition in second tier ERP software has increased.
2. Many buyers wish to get third party software and the concept of Software-as-a-Service is gaining popularity.
3. The open source ERP software is in trend where the software is not restricted to one database.
4. Low cost customized enterprise software, which meets the specific needs of a company or an organization, is also getting priority.
5. Third party ERP software, which offers high business value is getting acceptance.
The traditional pricing structure of ERP has almost vanished from the market. Recession has changed business models of industries and companies are reinventing themselves. New business structure has also brought changes in the way this software was designed. Companies are seeking software to help them get out of recession.
1. New software should be flexible to accommodate market changes. Companies are less tolerant to errors and will not accept unreliable enterprise software. To stay in market software should be designed perfectly without errors.
2. Low cost solutions are given priority. Companies are not seeking for long term software solutions, in fact, many companies wish to buy short term and ideal enterprise solution, which helps them to improve performance.
3. Companies wish to buy solutions that provide easy solutions at a low installation and maintenance cost. ERP Software-as-a-Service is increasing its market in many areas of Asia and Asia Pacific because Software-as-a-Service comes in annual and monthly subscription, and the expense on hardware and maintenance is low.
4. Software supporting web technologies is getting many buyers.
