Research: SMBs prioritize cloud ERP

A research by TMR Research analyzes the prospects for cloud ERP solutions. Cloud ERP uses cloud computing to allow large, but mostly small and medium businesses to complete their processes faster and smoother. The use of cloud computing has further facilitated the delivery of ERP solutions through state of the art technologies. Let us take a more detailed look at some of the research findings.

According to the research by TMR Research, one of the main reasons for the global cloud ERP market growth is the increased use of cloud ERP in a wide range of applications for businesses of all sizes. The adoption of cloud computing is now the preferred option for business operations due to the lower costs it entails, especially compared to the initial investment cost and the maintenance cost involved when a business has its own servers and a dedicated maintenance team.

The result is the emergence of a massive need for cloud ERP in small and medium businesses, which until now was not possible for most of them, obviously because of the high cost. Small and medium businesses are progressively turning to the cloud ERP market to improve their business processes, their effectiveness, and the transparency of their transactions. This differentiation of SMBs across multiple verticals is expected to drive the cloud ERP market in the coming years. In addition, increased support by governments worldwide for the development of business IT infrastructures, is expected to further increase the need for such solutions.

Finally, it is worth noting that the global cloud ERP market will see a two-digit growth rate in the next years. Businesses continue to integrate cloud-based applications into traditional ones, creating hybrid ERP systems with the capability of supporting new business models, and expanding to meet new customer needs.

The global cloud ERP market is divided into segments covering North America, Asia-Pacific, Europe, Latin America, and Middle East & Africa. The largest share in the global market -based on revenue- belongs to North America followed by Europe (directly relevant to us). This is due to the established presence of cloud ERP vendors and service providers in these regions, and all that goes with respect to technological innovation.