Is Enterprise Software Dead?

Big software, like ERP solutions from vendors like SAP and Oracle are what most large business use to run their operations.  From supply chain logistics controlling how much product to order, from which supplier, at what price to human resources management solutions which help organizations keep track of their inventory of talent and produce payroll – it’s all part of what is called Enterprise Applications.  Since the death of the mainframe, Enterprise Applications have been the lifeblood of many IT organizations and one of the largest initiatives on the mind of a typical CIO.

How do we know that what the top priorities of a CIO are?  To help answer this questions, analysts from Gartner publish the results of their annual Executive Program CIO Survey which queries over 1,500 CIOs on their top priorities for the year.  In the 2010 survey there was a remarkable absence from the top 10 priorities – Enterprise Applications

Gartner Executive Program CIO Survey, January 2010

After ranking as the second most pressing priority for CIOs, Enterprise Applications suddenly fell out of the top 10 slots.  Equally interesting is that Cloud Computing has quickly shot up from #16 in 2009 and not ranked before then to #2 on the list.

While there are a number of questions that this study raises, the specific ones to consider for this post are:

  1. Is the sudden and dramatic shift in Cloud Computing an anomaly or an indication of something more substantial?
  2. How does Business Intelligence go from #1 to #5 behind several relatively new topics?
  3. Is the substantial decline of Enterprise Software’s ranking related to the sudden increase in focus on Cloud Computing?
  4. Is Enterprise Software Dead?

I have my own perspective on this one and will share it in a future post.  Meanwhile, I would welcome your thoughts on this topic.  Please join in the conversation by posting your comments.

2 thoughts on “Is Enterprise Software Dead?

  1. I would have to agree and disagree. I don’t think that it’s dead, but I do think they need to adjust their philosophy otherwise they will continue to lose alot of market share to quicker, more nimble cloud companies.

    They will always have those huge clients that will always need huge tailored software, but how many of those smaller to medium sized clients are only using the software because it’s the only choice? Alternatives are popping up at an alarming rate.

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