META Group, Inc. announced the availability of its newest METAspectrum evaluation for the Tier 1 ERP market. ERP solutions are considered core IT investments that provide organizations with a suite of enterprise business applications consisting of financial and human resource solutions as well as various other applications such as manufacturing, supply chain and customer relationship management.

"The most important measurement of performance for an ERP vendor is technology and functionality, because these attributes represent the heart of a product offering," says Ron Hanscome, senior program director with META Group's Enterprise Application Strategies service. "However, in the next one to two years, importance will shift toward customer delivery as well as the vendor's dedication to demonstrating implementation value."

Due to reduced spending among Global 2000 companies, Tier 1 ERP vendors have begun to explore other revenue streams. New focus has been put on selling additional functionality into existing G2000 customers, developing more vertical extensions, and further penetrating the small and medium business market.

Key Findings:

The Tier 1 ERP market is mature and concentrated, with the five vendors evaluated accounting for more than 80 percent of ERP investments. The analysis found:

  • SAP, Oracle and PeopleSoft are considered the Tier 1 ERP leaders.
  • Tier 1 challengers are stable, financially successful firms with a long track record; however, they lack breadth across numerous industry verticals and have limited geographic coverage.
  • There are no vendors designated as followers in this market analysis, but several ERP firms that serve the midmarket may at times compete with leaders and challengers.
  • The Tier 1 ERP market reached $15 billion globally in 2002 and is growing at 12-15 percent percent annually.

To learn more about the METAspectrum methodology, visit www.metagroup.com/metaspectrum or call (800) 945-META.

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