By Neal Weinberg Contributing writer, CIO Magazine – FEB 17, 2022
For decades, traditional ERP systems—a cornerstone of enterprise resource planning—enabled organizations to run core business processes on a single platform, delivering stability and reliability. Over time, however, the monolithic, on-premises ERP has become outdated. This is especially true in modern industries where complex manufacturing supply chains, demanding human resources requirements, aerospace defense regulations, and finance supply chain needs require solutions that provide real-time insights and user-friendly interfaces.
Today, companies embracing digital transformation seek the flexibility, agility, speed, and remote access offered by cloud-based solutions. New approaches to resource planning ERP are emerging, with some focusing on specific needs such as project management, inventory management, or industry-specific configurations for mid-sized businesses and the mid-market. Meanwhile, the industry is moving toward what Gartner calls “composable” ERP, which combines cloud-based ERP software, machine learning capabilities, and diverse deployment options into a highly configurable, interoperable, and flexible software platform designed for enterprise planning.
In compiling our list of the 10 most powerful ERP vendors, we considered vendor size, cloud strategy, and how their vision for the future of enterprise resource planning is shaping the market. The inclusion of vendors not traditionally seen as ERP leaders highlights how the cloud and evolving digital strategies are blurring traditional enterprise software boundaries and reshaping competition for corporate budgets. Many of these ERP vendors serve verticals such as aerospace defense or regulated manufacturing, offering solutions that span human resources to advanced analytics. Below, we explain why these vendors made the list and offer insights into how quickly they can help you transition to a real-time, cloud-based ERP capable of fueling business growth.
1. Oracle: Gaining Ground with Two Cloud ERP Products
Why they’re here: Oracle ranks second in market share and is aggressively pursuing SAP with two cloud-native offerings. Oracle NetSuite ERP, acquired in 2016, targets midrange businesses. Oracle Fusion Cloud ERP, developed internally, is a broad platform suitable for the largest global enterprises. Gartner places Fusion Cloud ERP in the top leadership position in its latest Magic Quadrant for product-centric ERP, standing out for real-time insights and resource planning.
Oracle’s cloud-based approach supports various deployment options, covering finance supply chain, inventory management, project management, human resources, and manufacturing supply chain tasks. Its real-time analytics help businesses—including mid-sized and mid-market companies—make rapid, data-driven decisions.
Power moves: In late 2021, Oracle made its largest acquisition to date, buying electronic healthcare records company Cerner Corp. for $28.3 billion. This move gives Oracle a major foothold in the fast-growing healthcare industry, demonstrating its commitment to industry-specific needs from healthcare to aerospace defense.
By the numbers: Oracle’s annual cloud ERP revenue is about $5 billion. Chairman and CTO Larry Ellison predicts this could reach $20 billion in five years.
Outlook: Oracle’s ERP business is a strong performer. In December, CEO Safra Catz reported, “We now have 8,500 Fusion ERP customers with revenue growing 35% and 28,400 NetSuite ERP customers with revenue growing 29%.” Ellison noted Oracle is not only gaining new customers but also plans to transition 6,500 on-premises legacy ERP customers (from JD Edwards and PeopleSoft acquisitions) to the cloud, highlighting Oracle’s focus on real-time resource planning ERP solutions.
2. SAP: The Battleship Is Turning Around
Why they’re here: German giant SAP leads the market with annual revenue nearing $30 billion. However, most of SAP’s vast installed base still runs on-premises ERP. SAP’s challenge is to compete with cloud-only ERP vendors and persuade S4/HANA customers to migrate to the SAP cloud, including SAP HANA and SAP HANA Cloud. This shift to cloud-based ERP reflects SAP’s commitment to user-friendly, industry-specific solutions, from aerospace defense to manufacturing ERP systems.
SAP’s technology stack increasingly leverages HANA Cloud for real-time data processing, enabling customers to streamline resource planning, inventory management, and finance supply chain processes. SAP also supports machine learning and advanced deployment options to address a wide range of business needs.
Power moves: In January, SAP acquired a majority stake in US fintech firm Taulia, expanding its presence in supply chain financing and strengthening its reach in manufacturing supply chain and mid-market finance solutions.
By the numbers: 74: The number of acquisitions SAP has made over the years.
Outlook: Nucleus Research analyst Trevor White says, “While slower than others to embrace the cloud, SAP has now committed to the cloud’s future, providing a clear and modern roadmap for enterprise clients.” SAP’s Rise program helps customers migrate to the cloud and pursue digital transformation. SAP’s cloud revenue rose around 25%, and CEO Christian Klein projects $25 billion in cloud revenue by 2025, further integrating real-time insights, resource planning ERP modules, and potential aerospace defense expansions.
3. Microsoft: A Vertically Integrated Offering from Desktop to Cloud
Why they’re here: Microsoft has become an ERP leader with its broad Dynamics product line, mainly targeting small to midsize businesses and available both on-premises and in the cloud. Dynamics Business Central serves the mid-market. A key advantage is the integration of ERP business processes with Microsoft tools such as Office, Teams, Outlook, Power BI, and SQL Server, while leveraging real-time analytics and machine learning in Azure. This approach benefits project management, enterprise resource planning, and manufacturing supply chain operations that require cross-department collaboration.
Power moves: Microsoft recently acquired Orions Systems, a leader in real-time video and image content analysis. This technology enhances Dynamics 365 for brick-and-mortar retailers, showing how Microsoft tailors ERP and CRM solutions for industry-specific needs, including aerospace defense.
By the numbers: Dynamics revenue grew 29% year over year, while Dynamics 365 (cloud-based) revenue jumped 45%, according to the latest earnings report.
Outlook: The pandemic’s shift to remote work, cloud migration, and increased demand for user-friendly collaboration tools played to Microsoft’s strengths. In the long term, organizations are rethinking business processes, reinforcing Microsoft’s ability to enhance enterprise resource planning with collaboration, data visualization, finance supply chain analysis, and AI-powered machine learning.
4. Workday: Shaking Up the ERP Market
Why they’re here: Workday began as a SaaS-based Human Capital Management (HCM) application but has expanded into financial management and enterprise planning, primarily for service-based organizations. Workday executives advocate for replacing “ERP” with “enterprise management cloud,” emphasizing real-time capabilities, robust human resources services, and industry-specific features.
Workday’s cloud-based modules enable many mid-sized businesses to modernize processes. It also offers advanced features such as machine learning for data analysis, providing better insights into resource planning and project management.
Power moves: In 2021, Workday acquired VNDLY, which helps organizations manage contractors and third parties.
By the numbers: $510 million: The amount Workday spent to acquire VNDLY.
Outlook: Workday lacks the deep, industry-specific manufacturing ERP modules of legacy vendors, particularly in manufacturing supply chain, inventory management, or aerospace defense. However, it positions itself as a strong challenger, offering a cloud-based, best-of-breed alternative in financials, HR, payroll, and planning. Workday’s revenue is growing steadily at 25% annually, with total revenue exceeding $4 billion.
5. Sage: Carving Out a Low-Cost, High-Value Niche
Why they’re here: Often seen as a low-cost alternative to Oracle and SAP, Sage Group aims to reignite revenue growth after hovering around $2.5 billion for several years. Sage has developed its own cloud platform and is expanding beyond accounting and payroll for small businesses. Gartner rates Sage Intacct as a visionary. Under the Sage X3 brand, Sage is moving deeper into supply chain management, manufacturing, and sales, targeting mid-sized and mid-market clients seeking robust enterprise resource planning modules.
By bundling inventory management, human resources, and project management tools, Sage targets industry-specific segments. This approach benefits aerospace defense companies needing interconnected systems with real-time finance supply chain insights.
Power moves: In late 2021, Sage acquired Brightpearl, which provides ERP and CRM software for retailers.
By the numbers: $300 million: The amount Sage paid for Brightpearl.
Outlook: Sage is pursuing aggressive growth. CEO Steve Hare says, “Having re-shaped and invested significantly in the group over the last three years, we are now focused on growing the business in absolute terms, both organically and through acquisitions.” Sage’s evolving approach to resource planning ERP, including manufacturing supply chain and human resources, continues to move toward real-time, cloud-based ERP.
6. Infor: Banking on Deep Industry-Specific Knowhow
Why they’re here: With annual revenue exceeding $3 billion and a market share of 5–6%, Infor is among the top ERP vendors. It offers a full range of ERP solutions across industries such as aerospace defense and has transitioned from legacy to cloud. Infor differentiates itself with industry-specific ERP modules and a multi-tenant cloud platform hosted on AWS, delivering real-time insights for manufacturing supply chain operations and advanced inventory management. Infor CloudSuites is rated as a leader by Gartner for product-centric enterprises, with expanding machine learning features.
Power moves: In 2020, Infor was acquired by Koch Industries and is now a subsidiary of the $110 billion conglomerate.
By the numbers: $13 billion: The amount Koch Industries paid for Infor.
Outlook: Koch Industries, both a customer and investor before the acquisition, saw potential in Infor and believes additional capital will elevate Infor in resource planning, project management, and mid-market expansions. Koch Executive Vice President and CEO of Enterprises Jim Hannan stated, “Koch has the resources, knowledge, and relationships to help Infor continue to expand its transformative capabilities.”
7. Epicor: Guiding Customers on the Journey to SaaS
Why they’re here: Epicor’s Kinetic cloud ERP platform is recognized as a visionary in Gartner’s latest ERP evaluation. Epicor Kinetic addresses manufacturing ERP and distribution needs and suits mid-sized businesses seeking easy deployment. Gartner notes Kinetic “delivers a solid operational ERP solution for midmarket manufacturing and distribution companies, along with adjacent capabilities for demand planning, inventory and warehouse management.” The solution is user-friendly, offering real-time data visibility and advanced planning features.
Power moves: In January, Epicor acquired JMO Business Systems, a leader in warehouse management and enterprise mobility solutions for the automotive industry. This strengthens Epicor’s industry-specific solutions, including aerospace defense, manufacturing supply chain, and project management.
By the numbers: $4.8 billion: The amount Clayton, Dubilier & Rice (CD&R) paid to acquire Epicor in 2020.
Outlook: Like Infor, Epicor’s acquisition by a major private equity firm is expected to fund further acquisitions and drive the shift from on-premises to SaaS for its established customer base. Company officials report revenue nearing $1 billion with double-digit growth, and SaaS now represents half of recurring revenue. Epicor is likely to continue investing in resource planning, real-time insights, and deeper industry functionality for mid-market customers.
8. ServiceNow: Building a Platform for Digital Transformation
Why they’re here: ServiceNow, a cloud-based IT services leader, is not a traditional ERP vendor and lacks the deep industry-specific expertise of legacy players. However, ServiceNow approaches enterprise resource planning differently: its Now Platform connects digital workflows and optimizes business processes across IT, employees, customers, and application creators. Gartner rates ServiceNow as a leader in cloud-native, low-code application platforms. The technology integrates with existing ERP systems to deliver real-time insights and streamlined solutions.
Power moves: ServiceNow acquired ERP migration company Gekkobrain, helping organizations identify and understand custom code in their ERP apps and automate modernization of apps and workflows. This complements mid-sized businesses seeking to optimize finance supply chain or machine learning capabilities.
By the numbers: ServiceNow reported 30% growth in 2021, with total revenue nearing $6 billion.
Outlook: Industry analyst Josh Bersin notes that ServiceNow is tapping into a market beyond traditional ERP, calling it a content creator platform. “Every HR team, every manager, and every IT department wants to build a new workflow or design a new process. They’re going to ServiceNow to do so.” This approach to real-time workflow modeling also unifies resource planning and project management tasks across multiple business sectors.
9. QAD: Cloud-Based Innovator in Manufacturing and Supply Chain
Why they’re here: Gartner ranks QAD as a visionary for manufacturing and supply chain management for midsize manufacturers with its cloud-based QAD Adaptive ERP suite. QAD focuses on industry-specific software, real-time insights, and resource planning support. The company demonstrates how ERP and CRM lines can blur, as it recently acquired WebJaguar, a digital commerce platform, to create an omnichannel customer management solution for both B2B and B2C industries, including those needing advanced planning features or machine learning analytics.
Power moves: QAD was taken private by Thoma Bravo in 2021.
By the numbers: $2 billion: The amount Thoma Bravo paid for QAD.
Outlook: Thoma Bravo has a strong record of acquiring software companies, injecting capital, and providing management expertise. QAD founder and president Pamela Lopker says, “Through this partnership, we will be even better positioned to build on our strong foundation.” This could mean enhanced offerings for inventory management, project management, or cloud-based ERP expansions across industry verticals, including mid-sized businesses in aerospace defense or manufacturing supply chain segments.
10. Salesforce: Creating a Cloud-Based Platform for Digital Transformation
Why they’re here: Salesforce is the undisputed leader in CRM and has entered the ERP market with a unique approach. Salesforce built a robust cloud platform for running CRM applications (SaaS) and developing applications (PaaS). It then opened its platform to third-party companies to offer ERP solutions. For example, Rootstock provides manufacturing, distribution, and supply chain ERP on Salesforce Cloud, while FinancialForce delivers finance and accounting functions on the platform. These integrated solutions offer real-time analytics, resource planning, user-friendly interfaces, and project management features for business central environments or ERP planning tasks.
Outlook: Salesforce is a formidable player. It argues persuasively that since a company’s core business data is already on the Salesforce cloud, running integrated ERP apps on the same platform is logical. This creates synergy across enterprise resource planning and CRM scenarios, enabling mid-sized businesses and larger enterprises in the mid-market to leverage real-time data and synergy between CRM workflows and finance supply chain systems.
