Product category:
Enterprise Resource Planning software (ERP)
News Release from: SAP
Edited by the Manufacturingtalk Editorial
Team on 04 July 2006
SAP Leads Enterprise Software Market
Worldwide
SAP Leads Enterprise Software Market Worldwide. SAP Ranks #1 Worldwide in CRM, ERP and SCM Markets, According to Latest Reports from Industry Research Firm.
SAP AG has announced that the company has expanded its worldwide leadership as the number one enterprise software vendor, based on market share numbers Gartner Dataquest, a division of Gartner, the leading provider of research and analysis on global information technology, issued three reports on June 7th, June 8th and June 12th, 2006 analysing the status of the worldwide enterprise resource planning (ERP), customer relationship management (CRM) and supply chain management (SCM) market
This article was originally published on Manufacturingtalk on 30 Sep 2003 at 8.00am (UK)
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Based on the new metric of total software revenue, SAP ranks number one in all three enterprise software markets.
In addition, SAP now has the largest market share in the ERP - Enterprise Asset Management segment.
"SAP is thrilled to be recognised as the leader in market share across all ERP categories worldwide," said Leo Apotheker, president of Customer Solutions and Operations and member of the executive board, SAP AG.
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"We believe it's a testament to our ability to successfully execute against our product strategy, as well as how well we work with our customers to fulfill their current and future needs." For the first time, Gartner calculated the market share for the worldwide enterprise software market segments based on the total software revenue metric to reflect the changes in the industry, such as open-source software (OSS), on-demand business models and new regulations.
According to Gartner, the worldwide CRM market enjoyed robust growth as total software revenues grew 13.7 percent.
SAP enhanced its leadership position as the number one CRM worldwide market share holder with a year-over-year growth rate of 19.6 percent based on total software revenue.
SAP's strategy focuses on delivering strong standard CRM functionality with deep industry processes (for example, trade promotion management for consumer products and intellectual property management for media) enabled through unique SAP front-to-back-office integration.
Earlier this year, SAP further enhanced its CRM strategy by launching an on-demand offering that increases the target user base for the company's CRM products.
As the CRM market consolidated in 2005, SAP saw an increase in deals from organisations that had previously purchased best-of-breed CRM products.
SAP now ranks first in all four of the ERP software segments, including financial management systems, human capital management, enterprise asset management and manufacturing operations, worldwide.
SAP achieved the greatest breakthrough in the enterprise asset management segment.
A 21.4 percent year-over-year growth catapulted SAP to the number one market share position in this particular market.
SAP sees a strong customer adoption of mySAP ERP, the company's flagship ERP application, with customers implementing or upgrading from previous releases at a fast pace.
SAP expanded its position as the largest market share holder in the worldwide SCM market with a 25 percent year-over-year growth.
Total software revenue for SCM applications grew 2.6 percent annually.
The SCM market saw mergers, suite encroachment and technology advances in 2005.
SAP has invested heavily to compete successfully with the best-of-breed vendors in the areas of functionality, implementation and total cost of ownership.
SCM 2005 market drivers include increased adoption of service-oriented architecture (SOA), which SAP believes underscores its leadership and vision for enterprise SOA; and SAP's successful elevation of its SCM vision into its corporate message for all business applications from adaptive supply chains to adaptive business networks.
Gartner introduced total software revenues as a new metric for its worldwide enterprise software reports.
The research house defines total software revenue as revenue generated from new licenses, updates, subscriptions and hosting, technical support and maintenance.
Professional services and hardware are not included in total software revenue.
In the past, the research firm had used software new license revenue as a metric for its reports.
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