Magic Quadrant for Cloud ERP for Product-Centric Enterprises
Vendors or products added in this year’s report may indicate a change in the market, change in evaluation criteria, or change of focus by the vendor.
No vendors were added in this report.
Vendors or products dropped from one year to the next may indicate a change in the market, change in evaluation criteria, or change of focus by the vendor.
No vendors were dropped in this report.
Gartner continues to see the market for cloud ERP for product-centric enterprises as being primarily driven by its adoption among lower-midsize organizations rather than large or global enterprises. While the number of customers adopting cloud ERP continues to grow at low double-digit rates, it is being driven more by those organizations where complexity is not as substantial. Gartner has seen few very large global enterprises fully adopt a public cloud native ERP, except for adopting a multitier ERP strategy for using cloud ERP in smaller operating units. This is primarily driven by the significant level of change management required with a "greenfield" implementation of a configure-only cloud ERP solution, but also by the difficulty of building a business case that primarily relies on improved productivity and superior data analytics for decision making. Gartner does believe, however, that the market is at an inflection point given the rise of generative AI and, more recently, agentic AI. Every vendor that we have evaluated in this Magic Quadrant has recognized the high potential of agentic AI, and some have already released basic AI agent capabilities and all vendors have very robust roadmap offerings.
A: We review and adjust our inclusion criteria for Magic Quadrants as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant may change over time. A vendor's appearance in a Magic Quadrant one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. It may be a reflection of a change in the market and, therefore, changed evaluation criteria, or of a change of focus by that vendor.