Online publication, “Computing”, recently wrote a summary of a recent Gartner analysis. There are some interesting numbers in the Gartner analysis, but I question how they were calculated.

According to the article, the Supply Chain Software Market accounts for $6bn annually, and is growing at 17% per year. Gartner reports that SAP is leading the race with 22% of the entire market (or $1.32bn), Ariba holds 5% ($308million last year).

Although I agree with the size of the marketplace, and that there is some room for consolidation, I question how they calculated the 22% share that SAP supposedly owns. Perhaps they have sold that many licenses for Supply Chain Solutions, but they certainly have not actively deployed working software in that much of the market.

For better or worse, we encounter triple the amount of clients/prospects that actively have Ariba deployed in the organization. And we have yet to encounter a single organization that is using a fully functional version of SAP’s solution. This year at the ISM conference we talked to handfuls of people that had acquired SAP and Oracle’s supply chain solutions, but either had 5 year deployment schedules, or had no intention of using the solution at all.

It would be interesting to see the study conducted again, but based on actual functional deployments (with case studies), not the numbers that the software giants are reporting to the press.
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William Dorn

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