Report: Cloud computing enhancing ERP software market

According to recent analysis conducted by Panorama Consulting, the rise of cloud computing has led to a complete transformation of the enterprise resource planning software market.

Now, many companies utilizing ERP software have begun looking for similar cloud-based solutions. Doing so allows businesses to leverage the benefits related to the cost-efficiency available with the managed IT service.

This trend was recently discussed by Alan Bowling, chairman of the UK & Ireland SAP User Group.

Currently, roughly a quarter of businesses use a third-party for their ERP software, and another 17 percent relay on Software-as-a-Service delivery. Among the operations most heavily based on the cloud are document management systems and relationship management infrastructures, as these now allow for collaboration across multiple systems.

As cloud-based ERP software increases, the average cost of implementation of this software has dropped in addition to deployment times.

Market research firm Gartner believes SaaS and CRM systems will see increased use during the next couple years, while IDC predicts the public cloud market will reach $29.5 billion by 2015.