ERP Vendor Revenue across Segments Seen Reaching $47.7 Billion by 2011

AMR enterprise applications market sizing reports project growth for sourcing and procurement apps; PLM growth health as companies focus on new product development

August 3, 2007

Boston — August 3, 2007 — Enterprise resource planning vendors will see continued growth in sales over the next four years, as will e-procurement and sourcing solutions providers, according to a recent report from AMR Research.

AMR Research in July released its market sizing reports for enterprise resource planning (ERP), human capital management (HCM), customer relationship management (CRM), product lifecycle management (PLM) and procurement and sourcing market sizing reports.

Highlights from each of the reports include:

Enterprise Resource Planning: ERP vendor revenue across all segments is expected to grow from $28.8 billion in 2006 to $47.7 billion by 2011. Core ERP license revenue grew to $9.2 billion in 2006, an 18 percent increase over 2005.

Procurement and Sourcing: The procurement and sourcing market grew 10 percent in 2005-2006 and is expected to grow 8 percent each year through 2011. Vendors including Oracle, SAP, Accruent, American Express S2S and Dun & Bradstreet (D&B), all reporting revenue growth of more than 10 percent, have established themselves as clear leaders, along with companies like Ariba and others.

Product Lifecycle Management: Despite consolidation, the product lifecycle management market continues to grow at a healthy 9.7 percent as companies look to streamline new product development and launch (NPDL) processes.

Customer Relationship Management: The CRM market is now dominated by five big vendors—SAP, Oracle, salesforce.com, Aspect and amdocs. Together, they make up 40 percent of the market (nearly $3.4 billion in total revenue for 2005).

Human Capital Management: The human capital management software market, expected to reach $10 billion in the next five years, is growing twice as fast as the enterprise application market as a whole.

In addition to these reports, AMR Research will publish market sizing reports on Supply Chain Management, Manufacturing Operations Software, Knowledge and Performance Management, IT Management and service oriented architecture (SOA), and Retail Applications.

More information about the market sizing reports is available at AMR's Web site.