Magic Quadrant for Cloud ERP

Posted on 27th October, 2023

Magic Quadrant for Cloud ERP

Organizations are adopting cloud ERP applications with superior process automation and analytic capabilities. Leaders should use Magic Quadrant to evaluate cloud ERP vendors as part of a strategy that emphasizes process standardization and agility. By 2026, up to 35% of product-centric enterprises will have achieved high composability in their ERP applications, integration, data, and security. ERP for product-centric businesses refers to technology supporting the automation of operational and financial activities for the manufacturing, distribution, and servicing of goods.

The four quadrants within the Gartner ERP Magic Quadrant are Niche Players, Visionaries, Leaders, and Challengers. The ERP Magic Quadrant from Gartner also ranks ERP vendors based on their "ability to execute" and "completeness of vision." As software that organizations use to manage everyday business activities like accounting, project management, procurement, risk management and compliance, and supply chain operations, ERP systems are crucial for managing businesses of all sizes and in all industries. Gartner Magic Quadrants provide visual snapshots, in-depth analyses, and actionable advice, offering insight into a market's direction, maturity, and participants.

1. Epicor Software

As a Leader in this Magic Quadrant, Epicor Industry ERP Cloud is its cloud solution, including purpose-built, industry-specific solution packages such as Kinetic for manufacturers, Prophet 21 for distributors, and Eagle and Propello for retailers. Most of this system's customers are midsize and based in North America, mainly in automotive, building supply, distribution, manufacturing, and retail verticals. Recent innovations include enhanced analytics with its GROW business intelligence platform and further enhancements to the extensibility of the solution. Some of the strengths of Epicor Software are the following:

  • Composable platform: Epicor leverages Microsoft Azure for infrastructure services and can provide a wide range of services with its Automation Studio and Data Fabric. Services include low-code and full-code development, integration, AI/ML capabilities, and analytics in a variety of geographies for hosting its cloud solution.
  • Data as a service: Epicor's product strategy focuses on a shift from transactional ERP to a data-driven operational model enabled by AI and business intelligence capabilities. This "data as a service" approach is designed to change how data is shared between trading partners to optimize supply chain processes and minimize disruptions.

2. Infor

Infor is a Leader in this Magic Quadrant. Its CloudSuite provides applications with separate cores depending on industry vertical and size. This includes LN for large and global discrete manufacturing, M3 for process manufacturing and distribution, and SyteLine for small and midsize manufacturing businesses. Its operations are geographically distributed, with clients in industrial manufacturing, food and beverage, distribution, automotive, fashion, and aerospace and defense. Some of the recent improvements are user experience upgrades, data analytics, and continued embedding of AI/ML for process automation. The strengths of this ERP system include:

  • Deployment speed and ease of adoption: This ERP system continuously reviews and adjusts its implementation methodologies to enable faster time to market. Infor's agility provides a "pick and choose" industry process catalog, adapting to different use-case scenarios in a prescriptive approach. The program, equipped with a robust toolset, strives to provide a continuous implementation approach.
  • Support for multiple and highly complex manufacturing scenarios: Infor CloudSuite provides a flexible solution for complex scenarios in discrete, process, project, "x to order," and asset-intensive manufacturing within one ERP. It is supplemented by prebuilt analytics, reporting capabilities, and solid-edge applications like supply chain planning, warehouse management, IoT traceability, and manufacturing execution systems.

3. Oracle (Fusion Cloud ERP)

Oracle is a Leader in this Magic Quadrant with its Oracle Fusion Cloud ERP. Aimed at upper-midsize and large enterprises, it has numerous global clients across the Americas, EMEA, and Asia/Pacific. Oracle supports multiple industry verticals, with strengths in industrial manufacturing, high tech, medical technology, pharmaceuticals, and consumer packaged goods. Recent innovations are improvements to the user experience, industry-specific supply chain functionality, asset-intensive manufacturing, and AI-enabled process automation and analytics. Some of the strengths of this ERP system are the following:

  • Global scale: Oracle has a wide network of implementation partners across the world. The system is available with local language, currency, and regulatory support in most countries. Furthermore, for organizations that have data residency requirements, Oracle can provide its cloud at customer offering to meet those requirements while providing all of the benefits of a cloud ERP solution.
  • Breadth of capabilities: Oracle supports customers' needs ranging from moderate to complex manufacturing, supply chain, and finance. It also has a portfolio of market-leading solutions such as WMS, TMS, digital commerce, HCM, project management, procurement, enterprise performance management, and analytics. This portfolio can support the most complex global organizations with hybrid business models for both product- and service-centric requirements.

4. Priority Software

Priority Software is a Niche Player in this Magic Quadrant. It provides general administrative and mixed-model operational ERP capabilities. Priority has mostly been successful with small and midsize enterprises in EMEA, even though it also has a sales office in the U.S. The ERP system appeals to businesses that may be wary of the cost and complexity of a large vendor's system. Midsize manufacturing customers seeking a single-suite approach should consider Priority when seeking to balance operational and administrative capabilities. Recent improvements were focused on user experience, mobility, and data analytics. The strengths of this ERP system include:

  • Seamless migration to cloud ERP: Despite the architectural shift from on-premises to cloud, current users of Priority's on-premises ERP can migrate to the cloud version and immediately start working with all the prior configurations, data, business logic, and customizations.
  • Strategic partnership with AWS: Priority recently signed a strategic partnership with AWS that will allow it to use a variety of data center and platform services that should help it expand its geographic footprint and capabilities, such as AI/ML. Priority is also developing its solution to be platform-agnostic.

Gartner's client inquiry data indicates that overall interest in cloud ERP suites is increasing significantly. Still, for product-centric enterprises, while the interest in exploring cloud ERP is high, the actual number of enterprises migrating to cloud ERP is not yet significant. Certain product-centric enterprises have migrated parts of their applications to cloud, starting with HCM or finance applications before moving on to core manufacturing requirements. The lag in moving core manufacturing operations is due to the higher levels of business process complexity and change management involved.

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