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Chapter 1 • Introduction to Enterprise Systems for Management 25

TABLE 1-2 ERP Market Tiers
Tier I, Tier II, and Tier III ERP Software Vendors
Sample Vendors
Tier I Tier II Tier IIII

SAP Epicor ABAS
Oracle Sage Activant Solutions Inc.
Oracle—e-Business Suite Infor Bowen and Groves
Oracle—JD Edwards IFS Compiere
Oracle—Peoplesoft QAD Exact
Microsoft Dynamics Lawson NetSuite
CDC Software Visibility
CGS
Hansa World
Consona
Syspro

includes large vendors like SAP, Oracle, and Microsoft, who provide support for large compa-
nies; Tier II includes vendors supporting the midsize companies; and Tier III vendors support
small companies. Recently, the midsize and small company markets have shown tremendous
growth. Small companies, which usually have less than 30 users and less demanding needs,
prefer using Tier III software. Midsize companies (with less than 100 users) that have outgrown
Tier III packages often become Tier II clients. They usually have just a few localized sites and
prefer short-term investments. Tier I software is targeted for a large enterprise company.
Here is the market share vendor between Tier II and top three Tier I vendors.

Tier II
30% SAP
31%

Oracle
MS Dynamics
15% 25%

Key Vendors
The competition among ERP vendors has become fierce, and mergers and acquisitions have become
the latest trend. The key ERP vendors (i.e., SAP, Oracle, Microsoft, and Infor) are likely to hold on
to their 46 percent of the ERP applications market. Many organizations who are shopping for a
system will opt for a vendor who is a leader in the industry, whereas others take the time to examine
products from many vendors before making a decision. The ERP industry is continually changing
and evolving as more and more businesses have started using packaged solutions to support their
enterprise functions. The following is a brief description of the current major ERP vendors.