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ERP spending to remain flat for most in 2011

Simon Quicke

Despite the innovation taking place in the ERP software market a bulk of customers will keep away from investing this year as tight budgets restrict their upgrade options.

According to analyst house Forrester ERP software might have evolved to deliver better user experiences and predictable long-term costs of ownership and greater flexibility but some customer cannot afford to take advantage of those features.

The ERP software market was hit hard by the recession but rebounded last year but this year is not going to see lift-off in sales with 72% of firms opting to keep a holding pattern with no specific plans to invest this year.

"Enterprise applications for running your business are evolving rapidly to enable more flexibility, better user experiences, and new deployment options offering more predictable long-term costs of ownership," stated the Forrester Trends 2011 ERP report.

But added that:  "Most enterprise resource planning (ERP) software customers, however, may not take advantage of the latest product innovations in 2011 due to limited IT budgets and daunting upgrade project costs."

That still leaves 25% of the customer base investing with the majority of those looking to upgrade existing systems.

Despite the apparent lack of spending ERP vendors are expected to continue to invest in products, which still lag behind CRM in the movement of the software towards the cloud.


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