When people think of ERP systems, most think of SAP, Oracle, and Microsoft Dynamics as the leading solutions. Among these top three, SAP is generally viewed as the leading ERP vendor in terms of real and perceived market share. Each of our recent annual ERP Reports has supported this concept, where we’ve seen SAP lead the pack in terms of the rates at which ERP systems are short-listed and selected.

In the 2011 Report, the second part of which is to be published later this month, we see a changing trend. While SAP still has the largest share of the ERP software market, this is the first year that we’ve seen Oracle nudge ahead of SAP in terms of the rate at which companies are selecting the software. The below table highlights the selection rate of the top 10 vendors in this year’s study:

Top 10 ERP Selections

Since selection rates can be seen as a leading indicator of market share, as they will ultimately lead to increased license, maintenance, and professional services revenue, could this mean that Oracle is taking a bite of SAP’s market share? Only time will tell and these are only preliminary estimates from our research to be published in the coming month, but it could provide further fuel to the heated competition among SAP and Oracle among the top ERP systems.

In the meantime, feel free to download the first part of our 2011 ERP Report to read about the other interesting trends we’re seeing in the market.

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