Who will win the SaaS ERP market (and how?)

Over the past decade there has been a significant shift of corporations moving toward cloud based operating systems, creating tense competition between large SaaS database companies in a race to “get there first”.

Bob Evans has a commentary published last week in Forbes (https://www.forbes.com/sites/bobevans1/2017/12/12/oracles-larry-ellison-challenges-amazon-salesforce-and-workday-on-the-future-of-the-cloud/#4d4ef9b93522) on this race, focusing specifically on what to expect from the current largest ERP provider in the world - Oracle.

Larry Ellison, Oracle CEO, boasts of his company owning the future of cloud database platforms do to their continued growth even in the SaaS arena, combined with their dominant presence in the market and vast diversity in product functionality within the Oracle family of products. Ellison pits this differentiator against more focused SaaS companies like Salesforce and Workday, who only specialize in one facet of business analytics.

Ellison has a point: integration of functionality leads to efficiency, and represents the ideal situation for most companies looking for a software suite. Generally companies prefer to have “everything under one roof” in a platform, instead of having to glue together so many different modules. Integration of systems helps you run more efficiently.

And yet, the very reason why there are so many separate modules and such fragmentation in the enterprise software market is because the most integrated and feature-rich systems are also the most expensive.

While Oracle may have ability to comfortably lay claim to the large enterprise market for some time to come, the most fragmented and volatile and exciting space to watch in the immediate future is down market.

We predict that the downmarket enterprise software space will consolidate and commodify, likely toward an extreme low-cost, integrated platform model. Cetec ERP aims to pioneer that path.

And, once ERP becomes commodified for the SMB downmarket space, who can predict what portends for larger company software decisions with respect to enterprise SaaS software.

Cetec ERP provides the technology that upgrades every aspect of a manufacturing businesses, and we continue to scale with the constant growth.

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