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To: Augustus Gloop who wrote (2121)	8/6/1998 2:46:00 PM
From: TBM700	Respond to of 3424

Thread: ERP Research Report from PRN newswire. ---AMR Research Predicts ERP Market Will Reach $52 Billion By 2002; Year 2000 Will Not Slow Remarkable Market Growth BOSTON, Aug. 6 /PRNewswire/ -- AMR Research, Inc., the leading industry and market analysis firm specializing in enterprise applications and enabling technologies, predicts that the Enterprise Resource Planning (ERP) software market will grow at a compound annual growth rate (CAGR) of 37 percent over the next five years. According to the firm's Enterprise Resource Planning Software Report, 1997-2002, total company revenue will top $52 billion by the year 2002. This conclusion is in marked contrast to other forecasters who believe that ERP demand has been artificially stimulated by Year 2000 concerns. "Given the time it takes to select and implement these major systems,companies have already passed the Y2K deadline," said Tony Friscia, president of AMR Research. "We believe that most Global 1000 firms are well-advanced in their ERP deployments and will now seek to extend ERP and related applications throughout their global supply chains." AMR Research attributes the continued growth to three primary factors. -- ERP vendors are continuing to expand market presence by offering new applications such as supply chain management, sales force automation, customer support, and human resources. -- To sustain their rapid growth, ERP vendors will look to sell more licenses into their installed base. Currently ERP vendors have a 10-20 percent penetration (i.e. percentage of total employees currently using the ERP system). This will grow to 40-60 percent within the next five years. -- While ERP originated in the manufacturing market, ERP usage has spread to nearly every type of enterprise including retail, utilities, the public sector and healthcare organizations. Most will purchase new ERP systems over the next five years, often for the first time. Market Leaders Will Approach $1 Billion Mark. The vendors in the ERP market are segmenting into two tiers and are focusing on expanded product functionality, new target markets and higher penetration rates. The top tier consists of five vendors - Baan, J.D. Edwards, Oracle Applications, PeopleSoft and SAP AG. These companies account for 64 percent of the ERP market revenue and have grown over the past year at a furious pace of 61 percent. In addition, Baan, J.D. Edwards, Oracle, and PeopleSoft are expected to each approach or exceed $1 billion in total revenue in 1998, while SAP will approach $5 billion. Conclusion AMR Research predicts that the ERP market will reach $14.8 billion in total company revenue in 1998. In addition, when third party services, hardware, databases and networking are considered, AMR Research estimates that the ERP infrastructure is worth over $42 billion. This market will continue to be one of the largest, fastest growing and most influential in the applications industry, and is poised for steady growth into the new millennium. About AMR Research Founded in 1986, Boston-based AMR Research is the preeminent industry and market analysis firm specializing in enterprise applications and related trends and technologies. Tracking more than 400 leading software and service providers, AMR Research helps Global 1,000 companies evaluate, select, and manage new systems for every part of the enterprise, including logistics and supply-chain management, Enterprise Resource Planning (ERP), Manufacturing Execution Systems (MES), and electronic/internet commerce. SOURCE AMR Research, Inc.