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Global SaaS-based ERP Software Market 2011-2015

Global ERP software market to hit CAGR of 14.24% between 2011 and 2015

The Global SaaS-based ERP Software market is to grow at a CAGR of 14.24 over the period 2011-2015. One of the key factors contributing to this market growth is the need to reduce the total cost of ownership. The Global SaaS-based ERP Software market has also been witnessing increased adoption by SMEs. However, data security issues could pose a challenge to the growth of this market.

Increased adoption of software-as-a-service (SaaS)-based enterprise resource planning (ERP) software by small and medium enterprises (SMEs) is one of the major positive trends in the Global SaaS-based ERP Software market. Low initial investment and faster deployment are the major reasons behind the increased adoption of SaaS-based ERP in SMEs. SMEs are benefiting from the ability of SaaS-based ERP software to manage their robust business operations in an affordable pay-per-use model without having to invest in traditional on-premise ERP software. Realizing the huge potential offered by SMEs, many vendors have started offering ERP software products specific to SMEs, for instance, SAP and Oracle have entered the Global SaaS-based ERP Software market with the SAP Business One On-demand solution, and Oracle E-Business Suite, respectively, specific to SMEs.

Globally, one of the major drivers of the Global SaaS-based ERP Software market is the need to reduce the total cost of ownership. With SaaS-based ERP, the resource requirements associated with the responsibility for implementation, continuous operation, backup, updates and infrastructure maintenance of the ERP software is shifted from internal IT departments to SaaS vendors, which reduces the total cost of ownership of the ERP software. Moreover, with SaaS-based ERP, the initial cost of implementation is minimal and the customer pays according to their usage. Hence, the total cost of ownership decreases to a great extent.

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