Hi and welcome to The ERP Advisor, I’m your host Ashley Glasgow.
As reported by the Wall Street Journal, a significant number of companies have incurred “technical debt” in the past 18 months. With the speed of digital projects drastically increasing in response to the pandemic, CIOs have sacrificed quality for convenience in an effort to meet immediate demands of customers — while seemingly ignoring the long-term negative effects that are sure to follow. Our take: now is the time for organizations to evaluate ERP solutions that solve their underlying problems.
And it seems that more prudent organizations are taking this advice, as we have observed significant growth from several ERP software providers. Oracle reported an 8% increase in revenue in Q4, while Microsoft Dynamics 365 reported a 49% increase in their 4th quarter. Sage’s revenue grew 32% over its first three quarters, and IFS was up 20% year-over-year. Our analysts have identified a possible correlation between software innovation and revenue growth, with losses coming from vendors stagnating on research and development.
In international news, Alithya recently opened an office in Morocco, while Unit4 is starting a research and development center in Jakarta, Indonesia. These tactical efforts indicate that ERP vendors and implementation partners could be looking to increase support for emerging markets throughout the world.
Thanks for tuning into The ERP Minute this week!