Enterprise apps to reach $78 billion by 2004

Enterprise applications -- software typically used by big businesses -- will itself remain big business for years, according to a study released this week by AMR Research.

Enterprise applications -- software typically used by big businesses -- will itself remain big business for years, according to a study released this week by AMR Research.

The enterprise applications market will grow from $US27 billion in 1999 to $US78 billion in 2004, a compound annual growth rate of 24%, according to the study.

This growth will be fueled by enterprise applications for supply chain management (SCM), e-business relationship management (ERM) and e-commerce, AMR's study predicts.

Enterprise resource planning (ERP) applications made up 64% of the enterprise applications market in 1999 but will fall to less than a third of the market in 2004, AMR's study concludes.

The research firm predicts that the ERP market growth will slow to 5% a year, increasing from $16.9 billion in 1999 to $21.4 billion in 2004.

The top five ERP vendors -- SAP AG, Oracle, Peoplesoft, JD Edwards, and GEAC SmartEnterprise Solutions -- are in flux and being challenged by new market dynamics, allowing new players to gain ground, according to a statement from AMR.

These five market leaders account for 62% percent of the total market revenue, and will find new opportunities in ERM, SCM and e-commerce markets.

E-commerce, which made up only 6% of the enterprise applications market last year, will more than triple its share to 20% in 2004, according to the study. AMR predicts companies like Oracle and Broadband will sell $US16 billion in e-commerce software in 2004 -- 10 times more than last year's $1US.7 billion.

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