Agile Cloud Services Lead Growth-Gartner

in Cloud Computing

cloud growthA new report from analyst Gartner claims that the cloud-based companies ‘Workday’, ‘Workforce Software’, ‘Cornerstone OnDemand’ and ‘NetSuite’ were the four fastest-growing enterprise software market vendors in the world from 2012 to 2013, greatly outperforming their overall sector average which saw a mere 3.8% rise in the same period.

Worldwide ERP Market

Although the entire sector’s 3.8% growth is a slight improvement on 2012’s 2.2% growth, Gartner believes the cloud-based solutions have been so successful thanks to their ability to quickly alter their business models in line with customers’ demands, their philosophy of rapidly developing and delivering new features and new releases, and their flexible approach to pricing and resource allocation.

Gartner states that the worldwide ERP software market grew to $25.4 billion in 2013, with SAP retaining their position as market leader by earning $6.1 billion of revenue in the period. Despite the impressive first impression that the figures provide, SAP’s $6.1 billion of sales marks a mere 1.7% annual increase; second-placed Oracle saw sales drop by 0.2 percent, while third-placed Sage also saw a slight decrease.

Agile Clouds

In contrast, Workday’s revenue grew 86.1%  WorkForce Software’s grew 57.6%, Cornerstone OnDemand’s grew 57%, and NetSuite’s increased 39.6%.

The report speculates that the high-growth areas of the ERP market are being driven by companies who view cloud-based systems as more agile and responsive to their changing business model needs – it’s believed that old legacy systems are falling out of favour as they struggle to keep pace with the level of performance that modern companies need to survive and prosper.

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