Businesses 'to spend billions' on ERP software

News Article - 20 December 2006
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Businesses worldwide are expected to spend $2.44 billion (£1.24 billion) on customer relationship management (CRM) and enterprise resource planning (ERP) software over the coming year, a study has shown.

Findings from research company AMI-Partners highlighted a 17 per cent increase in the amount expected to be spent on the software in 2007 compared with 2006.

The countries planning to spend the most on hosted CRM were the UK, the US and France, which together will spend up to $674 million (£342 million), ZDnetAsia.com reports.

According to the website AMI analyst Spencer Richardson said that hosted software currently accounts for four per cent of global software spending by small and medium-sized enterprises, with the figure expected to increase further.

"Hosted/SaaS (software as a service) CRM and ERP are gaining market share over packaged software, as more SMBs [small and medium businesses] opt for these hosted services for mission-critical applications," he said.

Recent findings by the Service and Support Professionals Association claim that large technology companies will spend an estimated $565 million (£286 million) on CRM and e-services throughout 2007.

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