In 2020, the top 10 Cloud ERP software vendors accounted for nearly 44.1% of the global Cloud ERP applications market which grew 10.5% to approach nearly $25.8 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 12.2% market share riding on a 32.5% jump in Cloud ERP license, maintenance and subscription revenues. Intuit was #2, followed by athenahealth, 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 $32.1 billion by 2025, compared with $25.8 billion in 2020 at a compound annual growth rate of 2.8%.
|Exhibit 2: Worldwide Cloud ERP Software Market 2020-2025 Forecast, $M|
|Year||2020||2025||2020-2025 CAGR, %|
Source: Apps Run The World, April 2021
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 applications 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 2020 and their market shares.
|Rank||Vendor||2019 Cloud ERP Apps Vendors, $M||2020 Cloud ERP Apps Vendors, $M||Growth, %||2020 Market Share, %||Recent Developments|
|1||Oracle||Subscribe||Subscribe||32.5%||Subscribe||Driven by increased adoptions of its Oracle Fusion Cloud ERP among large enterprises, the vendor is expected to post more than $4 billion in annualized revenues for its back-office apps in 2021. With these next-generation back-office apps, Oracle has surpassed its rivals by quickly converting its installed base of legacy customers, while adding new ones that find new features of Oracle Cloud ERP indispensable for real-time finance. For example, it took an average of 10 business days for Oracle to close its books for the past three quarters after implementing Oracle Cloud ERP for its own use, making Oracle the fastest company in the S&P 500 to do so. Companies of the same size require twice as long to close their books. Among Oracle Cloud ERP’s 1,700 new features are touchless operations, digital assistant to help customers modernize and speed up their financial systems further.|
|2||Intuit||Subscribe||Subscribe||31.2%||Subscribe||Our Buyer Insight Master Database shows Intuit QuickBooks securing 21 million customers including both Cloud and onpremise accounts out of a total 57 million accounts worldwide in FY20. QuickBooks Online customers total more than 5.1 million worldwide and its revenues have risen 38% aided by accelerated sales of QBO Advanced. Cloud services like payments have also contributed to the top line, despite attrition among QuickBooks Self-Employed customers.|
|3||athenahealth||Subscribe||Subscribe||4.5%||Subscribe||Athenahealth is used by over 160,000 medical providers and 106 million patients, including over 50,000 physicians working for hospitals, health systems, and emerging care delivery units of University Hospitals, Baptist Health System, Wright State Physicians, Valley Medical Group, Carolina, Health Specialists, Hudson Headwaters Health Network and others.|
|4||RealPage||Subscribe||Subscribe||18.0%||Subscribe||In 2020 RealPage was taken private by Thoma Bravo in a $10-billion deal. RealPage currently serves more than 29,800 clients worldwide. Among its customers are Ambling Companies, Brookdale, Pacific West Management, Columbia Property Management, Patrician Military Housing, Yarco, Nolan, WestCorp and others.|
|5||SAP||Subscribe||Subscribe||18.5%||Subscribe||SAP’s flagship enterprise resource planning (ERP) system S/4HANA now has over 16,000 customers including 3,300 running S/4HANA Cloud, which has a run-rate of €800 million. About 2,000 S/4HANA Cloud customers are already live. The launch of Rise With SAP program in 2020 with best practices and rapid methodologies is expected to boost adoptions and go-lives of S/4 HANA Cloud in 2021.|
|6||Infor||Subscribe||Subscribe||14.6%||Subscribe||Now a subsidiary of Koch Industries, the largest privately-held US company, Infor is gearing up for another round of Cloud expansion with more than a quarter of its revenues from SaaS subscriptions and 14,000 customers running its Cloud applications and approx. 2,000 choosing to standardize on its Cloud ERP systems around the world.|
|7||Blackbaud||Subscribe||Subscribe||2.3%||Subscribe||Blackbaud posted 2.3% rise in subscription sales and a 9% drop in professional services in 2020 as a result of the economic downturn that hurt many of its nonprofit customers. Blackbaud has over 45,000 global customers including nonprofits, foundations, companies, education institutions, healthcare organizations and other social good entities. There are millions of users of Blackbaud’s solutions in more than 100 countries.|
|8||Workday||Subscribe||Subscribe||18.4%||Subscribe||Workday continues to expand across different Cloud applications segments, now zeroing in on scaling out its financial management customers. As of Workday’s FY4Q21, they reported over 1,050 Workday Financial management customers.|
|9||Visma||Subscribe||Subscribe||31.9%||Subscribe||Visma’s entry-level ERP solutions including Tripletex, Netvisor, Poweroffice, e-conomic, Dinero, and eAccounting experienced strong organic growth in 2020 and ended the year with close to 450 000 customer contracts. The number of customers on Visma.net Financials, the international cloud-based ERP targeting medium to large customers also experiences strong momentum. Cloud customer contracts now account for over 73% of all the contracts in the SMB Division. In 2021, Visma moved into the Spanish SMB market by acquiring Holded, a cloud ERP provider that managed to onboard more than 80 000 businesses in 4 years.|
|10||Xero||Subscribe||Subscribe||18.6%||Subscribe||Xero is used in over 180 countries by 2.38 million paid subscribers and integrates with 800+ add-on apps and 200+ banks and financial services providers. Following strong subscriber growth over the past 12 months, Xero emerges as the leading small-business cloud accounting software vendor in Australia, New Zealand, and the United Kingdom, based on the number of subscriptions. Xero now tracks similar growth trends in other parts of Asia and the Americas.|
Source: Apps Run The World, April 2021
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 2020-2025
- 2020 Cloud ERP Applications Market By Industry (21 Verticals)
- 2020 Cloud ERP Applications Market By Functional Market (16 Markets)
- 2020 Cloud ERP Applications Market By Country (USA + 45 countries)
- 2020 Cloud ERP Applications Market By Region (Americas, EMEA, APAC)
- 2020 Cloud ERP Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2020 Cloud ERP Applications Applications Market By Customer Size (revenue, employee count, asset)
- 2020 Cloud ERP Applications Market By Channel (Direct vs Direct)
- 2020 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, April 2021
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 2015-2020 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.