Dutch firms increasingly outsourcing ERP
Dutch organisations are increasingly opting for a hosting partner for their ERP application. This percentage has grown by more than 400 percent since 2012. Almost 3 out of 10 workplaces now run their ERP application in the data centre of an external service provider. 38 percent of firms run the ERP software at their own location. This percentage is steadily continuing to decline. In 2012, more than half of ERP users indicated running the on-premise package. The same declining trend is also visible for remote use of the ERP solution. These include ERP solutions that run at a sister or mother location in the Netherlands or abroad. This percentage decreased from 43 percent of ERP users to 31 percent. This was revealed from a Computer Profile analysis based on 6,000 interviews on business application usage conducted with IT-officers from Dutch firms with 50 or more employees.
Furthermore, it appears that 6 percent of Dutch firms use ERP via the cloud. The cloud solutions chosen are predominantly AFAS, Exact and SAP.
For the Dutch market, SAP is still the most common ERP supplier, with 30 percent. SAP owes its number 1 position to its place within the public sector and, to an even greater extent, its presence in multinationals. In this latter sector, slightly more than 60 percent of workplaces make use of SAP. In the national enterprise sector, Microsoft is one step ahead of SAP. In the medium sized business sector, it’s a neck-to-neck race between Microsoft and Exact. And customised ERP software still has a significant user base in the Netherlands. Approximately 7 percent of ERP locations use a self-developed (internal or external) package.
A fairly constant penetration can be observed for the majority of ERP vendors. The percentage of SAP users for example, has remained at just over 30 percent over the last five years. 2017 appears to show a decrease of a few percentage points versus the last five years. Microsoft fluctuates slightly, however the trend has clearly been increasing over the last seven years. Namely from just under 15 percent in 2010, to just under 19 percent today. Exact has maintained its position in the last five years. Oracle initially enjoyed several years of growth, yet seems to have slowly relinquished ground over the last three years. Evidently customisation is finally decreasing. In 2010, this was still at 14 percent. This has decreased linearly to the current 7 percent.
The penetration rate of ERP software in the Netherlands has barely changed in recent years. This is also reflected in the illustration of ERP usage per sector for 2011 until the present date. The majority of commercial sectors witnessed slight growth during this period. The government is the exception. Public authorities have seen a major consolidation battle in recent years. This appears to have been responsible for the decline in 2017.