This IDC study examines the market for ERP software, which forecasts strong growth through 2023. Digital transformation initiatives are aimed at bringing back-office ERP applications to parity with front office, creating a new digital core. 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/or they have a full digital transformation strategy. Smaller organizations and start-ups are now moving to cloud ERP systems as they set up their organizations' technology backbone.

"DX initiatives are forcing companies to look at their ERP systems and enterprise applications. This rationalization and modernization exercise is helping organizations recognize they need digitally relevant ERP systems that are cloud, intelligent, agile, scalable, and innovative than previous on-premises systems," says Mickey North Rizza, program vice president, Enterprise Applications and Digital Commerce.



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