To: Mike Perras who wrote (119 ) 3/24/1999 11:05:00 AM From: DRT Read Replies (1) | Respond to of 895
Technology News ERP Services Will Continue To Grow (03/23/99, 11:51 a.m. ET) By Scott Tiazkun, Computer Reseller News SAN DIEGO -- ERP services will remain a strong market for the next few years, letting ERP vendors and service providers forge new, and in many cases, still undefined relationships, said speakers at Gartner Group's Dataquest Predicts 99 conference here in San Diego. The ERP market has experienced "unprecedented" growth for the past three years, said Ben Pring, senior industry analyst with Gartner Group, in San Jose, Calif. While that level of growth "could not continue," there will be no major long-term downturn for the market, he said. "We see continued growth for ERP in vertical markets," he said. "There are still industries that have barely been touched by ERP." ERP and corresponding enterprise application software (EAS) have not reached saturation level in the enterprise, he said. EAS encompasses "bolt-on" software and new application functionality in addition to back-office ERP. "There is an explosion of interest in a broader set of functionality ERP hasn't addressed yet," said Pring. Citing statistics that ERP software, as a percentage of all IT software, accounts for only 18 percent, ERP has market horizons it has yet to tap, he said. Who will tap these markets, and the necessary corresponding services, is becoming less clear, according to Pring. While the overall ERP-EAS market is driven by the software vendors, Pring said this creates advantages and disadvantages in the service market. One of the areas of challenge the ERP vendors face is managing their partners. The complexities of the product have opened both vendors and partners up to criticisms that ERP is "painful and expensive," said Pring. As a result, some ERP companies, notably SAP, in Walldorf, Germany, are stepping into the firing line and attempting to manage their partners more carefully. Additionally, consultants and integrators will be under increased pressure from software vendors, as they try to retain greater amounts of service opportunities in-house. These trends and competitive conditions will increase and complicate the relationships that now exist, Pring said. "Merely being an ERP service provider will not be enough," said Pring. "The market place as a whole will be more challenging." ___________ The market that really matters is the anticipated growth in demand for ERP services/applications and the market share that ASI is capturing. Perhaps the market makers want to make enough to pay for lunch, perhaps no one is willing to sell their stock at these prices, etc., etc. DRT