According to AMR Research, ERP software sales are expected to surge, mirroring growth in the late 1990s. Vendors have improved ERP systems, and buyers are recognizing the need to increase investment in higher quality information systems. In the 1990s, most of the spending came from customers replacing old systems with ERP suites. Today, however, there is a healthy mix of new customers, consolidation projects, add-on applications and deployment to additional users.

Two key reasons for the increased growth in ERP software, according to a report from the Aberdeen Group, are manufacturers’ needs to boost sales in new global markets and find ways to lower manufacturing costs. The report, The Role of ERP in Globalization: A low-cost approach to reaching new markets, says that 79% of companies Aberdeen interviewed view global markets as a growth opportunity, but of these companies, half are feeling the pressure to reduce costs. Of those companies seeking to reduce costs either directly or by providing the necessary flexibility to ship from more cost-effective locations, 74% are also seeking growth opportunities.