This IDC study examines the market for ERM software, which is forecast to grow quickly at a CAGR of 6.6%. The market is expected to reach $77.0 billion by 2021 and is driven by the demand for public cloud offerings and more modern and consumerlike intuitive and machine learning user experiences. Demand for public cloud software (CAGR of 14.8%) contrasts greatly with that for on-premises applications (CAGR of 0.1%). Digital transformation initiatives aimed at bringing the back-office applications such as ERM in parity with front-office applications are creating the interest in cloud offerings and new technology partnerships. However, the on-premises software market remains important as medium-sized and large enterprises are still maintaining existing back-office software until contracts run out and they have a full digital transformation strategy.
"ERM solutions are moving rapidly to the cloud as organizations of all sizes embrace digital transformation initiatives and look to modern business applications with intuitive user experiences that can help them drive growth and agility while adapting to rapidly changing business models," says Mickey North Rizza, program vice president, Enterprise Applications.