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Global SaaS-Based ERP Software Market to Grow at a CAGR of 24.6 Percent during 2010-2014

By Rajani Baburajan
TMCnet Contributor

Worldwide Software-as-a-Service (SaaS (News - Alert))-based enterprise resource planning (ERP) software market is expected to grow at a CAGR of 24.6 percent over the period 2010-2014.

The report called “Global SaaS-based Enterprise Resource Planning Software Market 2010-2014” covers the Americas, the EMEA and APAC regions. The report was released by Research and Markets.

The SaaS-based ERP software market is primarily driven by the improved customer service enabled by this software. Another key factor contributing to this market growth is faster and easy deployment of SaaS-based ERP software at a reduced cost.

Several organizations are implementing SaaS-based ERP, so they gain the bandwidth to focus on non-technical issues. Organizations can offer better services to end-users, ensuring higher customer satisfaction, according to the report.

Integration and security issues are affecting the growth of the SaaS-based ERP market. The ERP software aids in cost savings. ERP vendors are experiencing high growth and implementation in developing economies, according to Technavio's industry analysts.

SMBs and large enterprises are deploying the SaaS-based ERP software. However, security issues with SaaS-based ERP software could pose a challenge to the growth of this market.

Important vendors dominating this market space include NetSuite, SAP, Oracle (News - Alert), Microsoft, Aplicor, and Intacct.

Recently, BMI announced that Bahrain's software market is likely to grow to $38 million in 2011. It will experience a CAGR of eight per cent until 2015. Bahrain is emerging as an important financial hub for the Middle East. The country is creating opportunities for banks to invest in new support services and regulatory compliances.

Enterprise applications should account for around 30 percent of software spending, as the market for ERP applications is far from saturated, BMI said. With the evolution of Bahrain's IT market, a stronger focus on software spending is now being seen.