In 2019, the top 10 Cloud ERP software vendors accounted for nearly 39.6% of the global Cloud ERP applications market which grew 13.2% to approach nearly $23.3 billion in Cloud ERP license, maintenance and subscription revenues. The Cloud ERP applications market includes both ERP Financial Management & ERP Services and Operations applications.
Last year Oracle led the pack with nearly 10.1% market share riding on a 35% jump in Cloud ERP license, maintenance and subscription revenues. athenahealth was #2, followed by Intuit, RealPage and SAP.
We ask the simple question: Who’s buying Cloud ERP applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)
Through our forecast period, the Cloud ERP applications market size is expected to reach $31.7 billion by 2024, compared with $23.3 billion in 2019 at a compound annual growth rate of 6.3%.
|Exhibit 2: Worldwide Cloud ERP Software Market 2019-2024 Forecast, $M|
|Year||2019||2024||2019-2024 CAGR, %|
Source: Apps Run The World, February 2020
Top 10 Cloud ERP Software Vendors
ERP Financial Management software covers finance-specific business processes such as accounts payable, accounts receivable, general ledger, and fixed asset accounting, as well as online functions such as invoicing, factoring, electronic payments and financial reporting. FM applications revenues represent a major contributor to the Enterprise Resource Planning market as part of our market sizing exercise.
ERP Services and Operations Management covers integrated applications suites designed to automate a range of business processes from back-office operations to financial management and from sales order capture to customer information management. Currently ERP also covers functions not being addressed by other functional markets. Examples include Environment and Health and Safety, Governance, Risk and Compliance, as well as industry-specific applicatons for 21 verticals.
Buoyed by NetSuite, Workday and Xero, the Cloud ERP Financial Management market has never looked more promising, but incumbents are fighting back with quick conversion toolkits, GL upgrades and embedded analytics for easy reporting.
Industry-specific Cloud ERP applications continue to exert considerable influence over direction of enterprise applications market, but growth remains muted because of entrenched presence of legacy systems.
Here are the rankings of the top 10 Cloud ERP software vendors in 2019 and their market shares.
|Rank||Vendor||2017 Cloud ERP Apps Revenues, $M||2018 Cloud ERP Apps Revenues, $M||2019 Cloud ERP Apps Revenues, $M||YoY Growth, %||2019 Cloud ERP Market Share, %||Recent Developments|
|1||Oracle||Subscribe||Subscribe||Subscribe||35%||Subscribe||Oracle has signed more than 25,000 Cloud ERP customers including nearly 7,000 for Oracle ERP Cloud and 18,000 for NetSuite. Each quarter Oracle is migrating at least 200 customers of its on-premise ERP systems like E-Business Suite to the Cloud.|
|2||athenahealth||Subscribe||Subscribe||Subscribe||8%||Subscribe||Athenahealth’s sale to Veritas Capital and subsequent merger with Virence Health, a value-based care company purchased by Veritas from GE, was a complex deal that closed in 2019. The combined company is operating under the Athenahealth brand.|
|3||Intuit||Subscribe||Subscribe||Subscribe||40.9%||Subscribe||Intuit QuickBooks Online subscribers now top 5 million, up from 1.6 million in 2016. Meanwhile, Intuit strengthened working capital management and payment offerings for SMBs, along with same-day payroll processing. The advanced version of QBO offers Live Help capabilities with personalized expert advice on accounting issues.|
|4||RealPage||Subscribe||Subscribe||Subscribe||14.6%||Subscribe||RealRage is considered the dominant player in the real estate ERP apps market primarily for property management. One of RealPage’s key attributes is its Cloud infrastructure that supports its fast-growing installed base. The RealPage Cloud consists of more than 7,040 virtual servers, 466 physical servers and about 4.4 petabytes of data(doubling what it kept last year).|
|5||SAP||Subscribe||Subscribe||Subscribe||25%||Subscribe||SAP was on track to sign more than 12,000 customers for its next-generation ERP S/4HANA by end of 2019 with 40% of the latest additions being considered net new wins for the vendor. Recently SAP extended its maintenance for on-premise ERP customers to 2040, beyond its earlier cutoff date of 2025.|
|6||Blackbaud||Subscribe||Subscribe||Subscribe||15.8%||Subscribe||Despite its outsized presence in the nonprofit vertical, Blackbaud estimates that it has barely scratched the surface. The vertical is made up of millions of nonprofit organizations around the world with as much as $1 trillion of fees that they generate for services they provide.|
|7||Infor||Subscribe||Subscribe||Subscribe||14.7%||Subscribe||In January 2019, Infor made enhancements to four of its ERP systems: Infor LN, Infor CloudSuite Automotive, Infor CloudSuite Aerospace and Defense (A&D), and Infor CloudSuite Industrial Enterprise. Recently, Koch Industries acquired Infor shares that it did not own from Golden Gate Capital, resulting in full control of the ERP vendor.|
|8||Workday||Subscribe||Subscribe||Subscribe||30.5%||Subscribe||Workday is now breaking out Procurement as a separate product line from Financial Management – and positioning it as a growth business. Workday signaled that machine learning will be front and center in Financial Management, as it combines intelligent automation, augmented analytics, and continuous insight, guidance and recommendations.|
|9||Xero||Subscribe||Subscribe||Subscribe||21.0%||Subscribe||Xero’s subscriber base has reached 2.057 million, while its annualized monthly recurring revenue is close to $500 million. Recently, Xero announced TaxTouch, a cloudbased tax solution for freelancers and the self-employed in the United States.|
|10||FIS Global||Subscribe||Subscribe||Subscribe||1.2%||Subscribe||FIS, which serves more than 20,000 clients in over 130 countries sees low single-digit growth for its ERP apps for banks and FIs aided by its maintenance revenues. Cloud migration is a work in progress.|
Source: Apps Run The World, February 2020
Other ERP software providers included in the report are: ACI Worldwide, Active Network, Acumatica, Adobe, Allscripts, Amadeus, Aptean, ARCHIBUS, Asseco Group, athenahealth, Avalara, Blackbaud, BlackLine, Bottomline Technologies, Capita Software, CDK Global, Cegid, CGI Group Inc., Cision, CompuGroup, CoStar Group, Cox Automotive, CSG Systems International, DATEV, Ellie Mae, Ellucian, Epic Systems, Epicor, Ericsson, Exact Holding BV, Exela Technologies, FICO, FinancialForce, Finastra, GE Digital, Greenway Health, Guidewire, HealthStream, IBM, IFS, Jack Henry & Associates, JDA Software Group, Kingdee, LexisNexis, Liscor, Medidata, MYOB, NCR Corporation, NextGen Healthcare, Nuance Communications, OBIC Co. Ltd., RealPage, Reynolds and Reynolds Company, Roper Technologies, SABRE Corp, Sage, Salesforce, SAP, Sapiens, Sopra Steria Group SA, SS&C Technologies, Temenos Group AG, Tieto, TOTVS, Trimble, Tyler Technologies, UNIT4, Vertafore, Visma, Wolters Kluwer, Workday, Works Apps, Xero, Yardi, Yonyou, Zoho Corp., Zuora.
Custom data cuts related to the Cloud ERP Applications market are available:
- Top 200 Cloud ERP Applications Vendors and Market Forecast 2019-2024
- 2019 Cloud ERP Applications Market By Industry (21 Verticals)
- 2019 Cloud ERP Applications Market By Functional Market (16 Markets)
- 2019 Cloud ERP Applications Market By Country (USA + 45 countries)
- 2019 Cloud ERP Applications Market By Region (Americas, EMEA, APAC)
- 2019 Cloud ERP Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2019 Cloud ERP Applications Applications Market By Customer Size (revenue, employee count, asset)
- 2019 Cloud ERP Applications Market By Channel (Direct vs Direct)
- 2019 Cloud ERP Applications Market By Product
Exhibit 4 shows the enterprise applications market by functional area. The highest growth functional markets revolve around smaller segments like Analytics and BI, Collaboration, eCommerce, PPM and TRM, where first movers remain less established than those that for decades have been entrenched in functional areas like Content Management and CRM.
Cloud ERP Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Cloud ERP systems based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest Cloud ERP software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these ERP customer wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
List of Cloud ERP Customers
Source: Apps Run The World, January 2020
An expanded version of this report covers the top 500+ ERP Financial Management Software Vendors and ERP Services and Operations Management Software Vendors , offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares (SCORES) within their respective space.
We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2015-2019 product revenues.
Their 2019xer results are being broken down, sorted and ranked across 16 functional areas(from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market.
We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.
The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.