Supply Chain Software Market Grows 7.3 Percent; Small Vendor Sales Up 18.3 Percent
By: MHI June 12, 2014
The global supply chain management and procurement software market grew 7.3 percent to $8.9bn last year, with small vendors combined significantly outpacing the overall industry growth rate, according to Gartner. Supply chain investments remained a high priority even as IT budget decision makers continued to exercise caution.
“Both influences have impacted strategic planning processes and have resulted in stronger price-based competition and smaller contracts. Cloud and subscription-based pricing is shifting revenue streams and influencing growth,” Chad Eschinger, Gartner research vice president, said.
“The impact of cloud on traditional on-premises license sales outside of the procurement market, which is heavily influenced by software as a service, is minimal today. Hence, while growth rates are high, the starting point is much lower and many of the deals are for specific functionality, rather than full suite deployments,” he said.