The Top Ten Enterprise Applications Vendors: Positioning, performance and SWOT analyses

The Top Ten Enterprise Applications Vendors: Positioning, performance and SWOT analyses

The Top Ten Enterprise Applications Vendors
Positioning, performance and SWOT analyses

The global enterprise applications market grew at a CAGR of 10.6%, during 2005–07, driven by rising energy costs and the US credit-crisis which forced enterprises to improve and optimize business processes.

Top Ten Enterprise Applications Vendors: Positioning, performance and SWOT analyses is a new report published by Business Insights that examines market dynamics in the enterprise applications market focusing on the top 10 vendors ranked on the basis of their revenues from the enterprise applications business in fiscal 2007. This report contains SWOT analyses of top 10 companies and assesses their market positioning, financial performance and growth strategies. It also provides insight into the direction of the market and trends which will change the dynamics of the industry.

Assess the world’s leading enterprise applications providers, anticipate future trends and enhance your competitive strategies with this new report.

Key findings from this report

• The global enterprise application market reached $36,700m in 2007, representing an increase of11.2% over 2006.

• The top 10 enterprise applications vendors accounted for 63.2% of the global enterprise applications market in 2007, with SAP and Oracle representing about 42.0% of the total market.

• Infor registered the highest year-on-year revenue growth in 2007 at 165.8%, while Epicor was the only company to register a single digit growth rate of 8.1% in 2007.

• Microsoft is gradually shifting to cloud computing to provide software and applications on-demand over the Internet with the launch of beta version of Microsoft Online Services.

• Platform-as-a-service (PaaS) allows developers to materialize their ideas in record time without investing in software hardware and related infrastructure. Although the market is in its infancy, it has emerged as a viable alternative to established players such as Microsoft’s.Net.

Table of Contents
The Top Ten Enterprise Applications Vendors
Executive summary 14
Market development 14
SAP 14
Oracle 15
Infor 16
Sage 16
Microsoft 17
Swisslog 18
Salesforce.com 18
Lawson 19
Exact 20
Epicor 20
Chapter 1 Introduction 22
What is this report about? 22
Methodology 22
Chapter 2 Market development 26
Summary 26
Introduction 26
Market overview 27
Market size and growth 27
Positioning and performance of top 10 companies 28
Key trends in the enterprise application market 31
Paradigm shift into ‘cloud computing’ 31
Evolution of Platform-as-a-service 33
Rampant industry consolidation 35
Focus on SMBs 36
Chapter 3 SAP 40
Summary 40
Company overview 41
Recent financial performance 41
Performance by business segments 43
Growth strategies 43
Expansion of traditional core businesses 43
Development of new business with smaller mid-market companies 44
Acquisitions and divestments 44
SWOT analysis 45
Strengths 45
Market leader in ERP applications for large enterprises 45
Strong financial performance 46
Weaknesses 46
Low presence in the public sector 46
Opportunities 47
Integration of Business Objects 47
Enterprise Support offering expected to increase share of
maintenance sales 47
Fast growing SMB market segment 48
Threats 48
Intense competition 48
Chapter 4 Oracle 52
Summary 52
Company overview 53
Recent financial performance 53
Performance by business segments 54
Growth strategies 55
Going beyond ERP in the applications arena 55
Upgrading existing applications product families 56
Inorganic growth 56
Acquisitions and divestments 56
SWOT analysis 58
Strengths 59
Strong presence in the Asia Pacific market 59
Extensive enterprise application portfolio 59
Weaknesses 60
Rising debt burden 60
Opportunities 60
Growing CRM software market 60
Expanding foothold in the insurance industry 61
Threats 61
Intense competition in the enterprise application industry 61
Exposure to government contracts 62
Chapter 5 Infor 64
Summary 64
Company overview 65
Recent financial performance 65
Performance by business segments 66
Growth strategies 67
Investing in product innovation and upgradation 67
Inorganic growth 67
Acquisitions and divestments 67
SWOT analysis 68
Strengths 69
Strong customer base 69
Weaknesses 69
Weak presence in Asia Pacific region 69
Opportunities 69
Growing PLM market 69
Open SOA 70
Threats 70
Currency risks 70
Chapter 6 Sage 72
Summary 72
Company overview 73
Recent financial performance 73
Performance by business segments 75
Growth strategies 75
Increased focus on specialist areas and industry-specific solutions 75
Acquisitions and divestments 76
SWOT analysis 77
Strengths 77
Diversified distribution channels 77
Acquisition and cross-selling strategy 78
Diversified product portfolio 78
Weaknesses 78
Weak growth in the US 78
Opportunities 79
Increasing investment in Saudi Arabia 79
Restructuring in North America 79
Threats 79
Intense competition in SMBs market 79
Chapter 7 Microsoft 82
Summary 82
Company overview 83
Recent financial performance 83
Performance by business segments 85
Growth strategies 85
Focus on the SMB market 85
Acquisitions and divestments 86
SWOT analysis 87
Strengths 87
Microsoft Dynamics business 87
Strong cash position 88
Weaknesses 88
Lack of near term catalyst 88
Opportunities 88
Launch of cloud computing services 88
Threats 89
Intense competition 89
Chapter 8 Swisslog 92
Summary 92
Company overview 93
Recent financial performance 93
Performance by business segments 94
Growth strategies 95
Gaining foothold in new markets outside the US 95
Acquisitions and divestments 95
SWOT analysis 96
Strengths 97
Strong order intake for logistics solutions 97
Weaknesses 97
Low margins 97
Opportunities 97
Expanding global footprint 97
Expanding product line through innovation 98
Threats 98
Lawsuit on PillPick in the US 98
Chapter 9 Salesforce.com 100
Summary 100
Company overview 101
Recent financial performance 101
Growth strategies 102
International expansion 102
Service offering extension 103
Acquisitions and divestments 103
SWOT analysis 104
Strengths 104
Strong position in on-demand segment 104
Weaknesses 105
Limited penetration of platform products 105
Opportunities 105
Accelerating SaaS and PaaS services throughout EMEA 105
Growing on-demand software market 105
Threats 106
Intensely competitive enterprise applications market 106
Chapter 10 Lawson 108
Summary 108
Company overview 109
Recent financial performance 109
Performance by business segments 110
Growth strategies 111
Focus on margin expansion 111
Acquisitions and divestments 111
SWOT analysis 112
Strengths 112
Dominant position in the healthcare ERP US market 112
Strong network of partners 113
Next generation ERP platform 113
Weaknesses 113
Increasing debt in the capital structure 113
Opportunities 114
Expanding presence in the Asia Pacific region 114
Threats 114
Industry consolidation 114
Chapter 11 Exact 116
Summary 116
Company overview 117
Recent financial performance 117
Performance by business segments 119
Growth strategies 119
Leveraging Exact Synergy to drive organic growth 119
Acquisition strategy 119
Acquisitions and divestments 120
SWOT analysis 121
Strengths 121
Strong position in traditional ERP SMB market 121
Weaknesses 122
Slow revenue growth as compared to peers 122
Opportunities 122
Launch of Release 380 122
Focus on BPM solutions in Latin America 122
Threats 123
Highly price sensitive mid-market 123
Chapter 12 Epicor 126
Summary 126
Company overview 127
Recent financial performance 127
Performance by business segments 128
Growth strategies 129
Developing applications for mid market firms 129
Acquisitions and divestments 129
SWOT analysis 130
Strengths 130
Domain expertise in key verticals 130
Price competitive application suites 131
Weaknesses 131
Rising debt burden 131
Opportunities 131
Expanding footprint in Latin America 131
Threats 132
Intense competition 132
Chapter 13 11 to 20 Companies 134
JDA 134
Company overview 134
Recent financial performance 134
QAD 135
Company overview 135
Recent financial performance 136
IFS 136
Company overview 137
Recent financial performance 137
Ariba 138
Company overview 138
Recent financial performance 138
CDC 139
Company overview 139
Recent financial performance 140
i2 technologies 141
Company overview 141
Recent financial performance 141
ILOG 142
Company overview 142
Recent financial performance 143
Netsuite 143
Company overview 144
Recent financial performance 144
Manhattan Associates 145
Company overview 145
Recent financial performance 145
IBS 146
Company overview 146
Recent financial performance 146
Chapter 14 Appendix 150
Glossary 150
Index 152
List of Figures
Figure 2.1: Global enterprise applications market size ($m), 2005–07 27
Figure 2.2: Top 10 enterprise applications vendors global market share, 2007 28
Figure 2.3: Competitive positioning of the top 10 enterprise applications vendors 29
Figure 2.4: Top 10 enterprise applications vendors’ growth, 2007 30
Figure 2.5: Various on-demand platforms 34
Figure 3.6: SAP enterprise applications financial performance ($m), 2003–07 42
Figure 3.7: SAP SWOT analysis 45
Figure 4.8: Oracle enterprise applications financial performance ($m), 2004–08 54
Figure 4.9: Oracle SWOT analysis 58
Figure 5.10: Infor enterprise applications financial performance ($m), 2004–08 66
Figure 5.11: Infor SWOT analysis 68
Figure 6.12: Sage enterprise applications financial performance ($m), 2005–07 74
Figure 6.13: Sage SWOT analysis 77
Figure 7.14: Microsoft enterprise applications financial performance ($m), 2004–08 84
Figure 7.15: Microsoft SWOT analysis 87
Figure 8.16: Swisslog enterprise applications financial performance ($m), 2003–07 94
Figure 8.17: Swisslog SWOT analysis 96
Figure 9.18: Salesforce.com enterprise applications financial performance ($m), 2004–08 102
Figure 9.19: Salesforce.com SWOT analysis 104
Figure 10.20: Lawson enterprise applications financial performance ($m), 2004–08 110
Figure 10.21: Lawson SWOT analysis 112
Figure 11.22: Exact enterprise applications financial performance ($m), 2003–07 118
Figure 11.23: Exact SWOT analysis 121
Figure 12.24: Epicor enterprise applications financial performance ($m), 2003–07 128
Figure 12.25: Epicor SWOT analysis 130
List of Tables
Table 2.1: Global enterprise applications market size ($m), 2005–07 27
Table 2.2: Top 10 enterprise applications vendors’ growth, 2007 30
Table 2.3: Cloud computing – shift from on-premises to on-demand 32
Table 3.4: SAP snapshot 40
Table 3.5: SAP enterprise applications financial performance ($m), 2003–07 42
Table 3.6: SAP business segment performance, 2007 43
Table 4.7: Oracle snapshot 52
Table 4.8: Oracle enterprise applications financial performance ($m), 2004–08 53
Table 4.9: Oracle business segment performance, 2008 55
Table 5.10: Infor snapshot 64
Table 5.11: Infor enterprise applications financial performance ($m), 2004–08 65
Table 5.12: Infor business segment performance, 2008 66
Table 6.13: Sage snapshot 72
Table 6.14: Sage enterprise applications financial performance ($m), 2005–07 74
Table 6.15: Sage business segment performance, 2007 75
Table 7.16: Microsoft snapshot 82
Table 7.17: Microsoft enterprise applications financial performance ($m), 2004–08 84
Table 7.18: Microsoft business segment performance, 2008 85
Table 8.19: Swisslog snapshot 92
Table 8.20: Swisslog enterprise applications financial performance ($m), 2003–07 93
Table 8.21: Swisslog business segment performance, 2007 94
Table 9.22: Salesforce.com snapshot 100
Table 9.23: Salesforce.com enterprise applications financial performance ($m), 2004–08 101
Table 10.24: Lawson snapshot 108
Table 10.25: Lawson enterprise applications financial performance ($m), 2004–08 109
Table 10.26: Lawson business segment performance, 2008 110
Table 11.27: Exact snapshot 116
Table 11.28: Exact enterprise applications financial performance ($m), 2003–07 118
Table 11.29: Exact business segment performance, 2007 119
Table 12.30: Epicor snapshot 126
Table 12.31: Epicor enterprise applications financial performance ($m), 2003–07 127
Table 12.32: Epicor business segment performance, 2007 128
Table 13.33: JDA snapshot 134
Table 13.34: JDA enterprise applications financial performance ($m), 2003–07 135
Table 13.35: QAD snapshot 135
Table 13.36: QAD enterprise applications financial performance ($m), 2004–08 136
Table 13.37: IFS snapshot 136
Table 13.38: IFS enterprise applications financial performance ($m), 2003–07 137
Table 13.39: Ariba snapshot 138
Table 13.40: Ariba enterprise applications financial performance ($m), 2003–07 139
Table 13.41: CDC snapshot 139
Table 13.42: CDC enterprise applications financial performance ($m), 2005–07 140
Table 13.43: i2 Technologies snapshot 141
Table 13.44: i2 Technologies enterprise applications financial performance ($m), 2003–07 142
Table 13.45: ILOG snapshot 142
Table 13.46: ILOG enterprise applications financial performance ($m), 2003–07 143
Table 13.47: Netsuite snapshot 143
Table 13.48: Netsuite enterprise applications financial performance ($m), 2003–07 144
Table 13.49: Manhattan Associates snapshot 145
Table 13.50: Manhattan Associates enterprise applications financial performance ($m), 2003–07146
Table 13.51: IBS snapshot 146
Table 13.52: IBS enterprise applications financial performance ($m), 2003–07 147