Monday, June 18, 2007

Drivers of Change...

Back to the basics...

The basic fundamentals which drive all businesses are also driving this change - the search for sustainable growth. The large ERP vendors that have traditionally served the large corporations are seeing a slow down in their revenue streams. It doesnt take much analysis to say that this market segment cannot ensure sustainable growth over the next decade. New markets must be found.

Arguably, two factors are enabling the ERP vendors to offer their products to the SMB sector and thereby helping them define the new markets:
  • Service Oriented Architecture (lovingly called SOA), and
  • an increasing acceptance of on-demand delivery models.

The together can potentially prove to be the holy grail for the customers and the ERP vendors alike.

The race for market share [of small and medium sized businesses] is on.

For now, the target is midmarket but is small business far behind?


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