This IDC study examines the market for procurement software that is growing at a great clip (with a CAGR of 7.3%, it's expected to reach $5.6 billion by 2020). Demand for public cloud (CAGR of 18.1%) is clearly outpacing that for on-premises/other software (CAGR of -1.8%), but the on-premises market remains significant as medium-sized and large enterprises are choosing to maintain existing software rather than disrupt the critical integrated processes and data required to procure the needed materials, parts, services, and supplies.
"Procurement is the second largest contributor of eight application markets within the ERM market. Procurement is a critical function to organizations because it contributes cost savings, improves cash management, builds awareness and improves risk management practices, and even brings revenue when their efforts are tied to additional customer opportunities. But the right technology is required to enhance procurements efforts. Increasingly, organizations of all sizes are looking to cloud solutions that deliver the promise of procuring products just as easily as the consumer does at home. Organizations want to do their jobs as simply as they shop at home — from product previews, 3D views,, specifications, and online help," says Mickey North Rizza, program vice president for Enterprise Applications.