This IDC study examines the market for financial applications software that is growing at a solid pace (with a CAGR of 4.1%, it's expected to reach $24.9 billion by 2020), driven in part by the demand for public cloud offerings, small and medium-sized businesses' requirement for cloud financial applications versus traditional spreadsheet management, the desire to make real-time financial decisions faster, and the convergence of large quantities of data. The demand for public cloud (CAGR of 12.8%) applications is clearly outpacing on-premises/other (CAGR of 0.2%) alternatives. However, the on-premises market remains significant as large enterprises are still choosing to maintain existing software rather than disrupt core applications such as the general ledger and financial reporting that continue to work smoothly.
"As more and more data is enabled across the enterprise, the ability to analyze it quickly and make real-time strategic financial decisions will become a large driver for all organizations to move toward cloud-based financial applications. Without core financial records tied to the intelligent data, an organization is at risk of financial accounting inaccuracies and lengthy financial business processes such as month- and year-end close." — Mickey North Rizza, program vice president, Enterprise Applications and Digital Commerce