Thursday, January 04, 2007
A Spectator reader alerted me to a recent decision by Gartner to discontinue its "magic quadrant" for mid-market ERP. Gartner's magic quadrants are a way to graphically display competing IT products in terms of the vendor's completeness of vision versus its ability to execute. Gartner has over 150 of them.
In attending vendor presentations, I am always amused by the fact that the vendor always seems to be able to find one magic quadrant that puts his product in the most favorable position.
Now it seems that Gartner is retiring its magic quadrant for ERP Midmarket Manufacturing. My source, who works for one of these vendors, says that as a result of consolidation there are not enough vendors left in midmarket ERP to populate the quadrant.
Software vendor consolidation and buyer concernsby Frank Scavo, 1/04/2007 09:12:00 AM | permalink | e-mail this!
Reader Comments:This seems a little short sighted on Gartners part. I find it hard to beleive there aren't some viable midmarket options to the behemoths of Oracle and SAP. But at the same time PeopleSoft went to great pains to make the case that Oracle's aqqusition was anti-competitive. Now that the dust has settled what do you think?
I think that vendor consolidation is just a symptom of the fact that it is difficult to make money using the traditional software license model. Economies of scale are about the only lever to pull to make it work at all--hence the trend toward large vendors.
Concerning anti-competition, I don't see any signs that enterprise software pricing has increased generally since the Oracle takeover of PeopleSoft. Oracle and SAP are still locked in a fierce battle for market share, and neither party has the power to increase pricing unilaterally. It would be interesting, though, to see if anyone has done a study to identify the trend in ERP pricing since the takeover.
We are a mid market co surveying the market right now and we don't feel like we have many options. WE manufacture, sell and rent construction eqt. We have looked at a few ERP systems but are having trouble finding a rental POS system on the front end.
Any thoughts? Thanks
Its funny how people live and die by Gartner's quadrant. very simlarly as the srticle says, for every report from Gartner that talks negative about a vendor's product there will always be another article from another Gartner writer talking great about the same product.