Oracle Fusion Cloud continued to lead the pack in the 2024 Gartner Magic Quadrant for Cloud ERP for Product-Centric Enterprises.
However, its Fusion Cloud offering was not alone. Esteemed vendors such as Microsoft, Infor, SAP S/4 HANA Cloud, and Epicor Software also made it into the top-right section of the quadrant.
Interestingly, SAP and Oracle have multiple products in the quadrant, with SAP Business ByDesign highlighted as a niche player and Oracle NetSuite highlighted as a challenger.
QAD missed out this year, as it did not meet all of the inclusion criteria outlined in the complete report.
No vendors were added to the Magic Quadrant this year.
The Definition of an ERP for Product-Centric Enterprises
A cloud enterprise resource planning (ERP) for product-centric enterprises enables the support and automation of various operational activities across manufacturing and distribution sectors.
In doing so, it becomes the cornerstone of a business, touching HR, manufacturing, supply chain, customer-facing teams, etc.
Vendors delivering a cloud ERP for product-centric enterprises are responsible for delivering infrastructure, application, and ongoing management support.
Gartner Magic Quadrant Leaders
Magic Quadrant leaders demonstrate a market-defining vision of how the cloud can support and improve ERP product-centric systems and processes can be supported and improved. This year’s leaders are:
- Oracle Fusion Cloud ERP
- Microsoft
- Infor
- SAP S/4 HANA Cloud Public Edition
- Epicor Software
Oracle Fusion Cloud ERP
The Oracle Fusion Cloud ERP targets large enterprises. Gartner highlighted its “breadth of capabilities” as a core strength. This is evident in its recent innovation streak, which includes various GenAI use cases, an ESG ledger, and a Smart Operations workbench for retailers. Other key strengths are its “complex corporate capabilities coverage” and “sustainability offering”.
Microsoft
Joining Oracle as a leader, Microsoft receives plaudits for its robust Dynamics 365 platform strategy by Gartner. Indeed, it provides specialized solution development tools, leveraging capabilities from its broader ecosystem. The analyst also cites its AI strategy as a strength, with Copilot Studio evolving into a hub for AI agents. These agents’ potential to simplify the migration of highly customized on-premise environments may prove hugely significant in the ERP space.
SAP 4/S HANA Cloud Public Edition
According to Gartner, SAP stands out for its innovation roadmap. Joule – its virtual assistant – will play a big role here, but the analyst also touts advanced, industry-specific product-centric capabilities, like predictive replenishment in retail. Gartner also commends SAP for its “comprehensive capabilities” and “partner ecosystem”.
Infor
Gartner cites Infor’s “deep industry vertical focus” as a core strength, with the vendor demonstrating its expertise across manufacturing and distribution industries. That’s evident in its tech and “augmented technical services”, which Gartner also singles out for praise. Finally, Infor gains credit for its “advanced workspaces,” which are role-based to increase productivity and improve decision-making.
Epicore Software
Every ERP is data-driven. However, Epicore’s approach to building operational data models is helping brands combat many of their most significant ERP-related challenges. These include maintaining records, data security, and managing data retention periods. Alongside this data prowess, Gartner commends Epicore Software for its “robust midsize offering” and “embedded integration platform as a service (iPaaS)” that allows brands to connect systems with little coding.
Gartner Magic Quadrant Challengers
Challengers in the Magic Quadrant have a greater market presence than Niche Players and Visionaries. However, they do not have a broad enough vision to execute consistently across the wider market. This year’s challengers are:
- Oracle NetSuite
Oracle’s NetSuite
Oracle NetSuite gained challenger status chiefly through its robust “infrastructure and services”, which Oracle continues to improve with various iPaaS resources and AI that meet the needs of midsize enterprises. Gartner also credits Oracle for its “ESG capabilities” and “36o dashboards”. Nevertheless, the analyst notes that Big Red can bolster its manufacturing functionality tailored toward highly complex organizations.
Gartner Magic Quadrant Visionaries
Visionaries understand how the cloud is changing ERP applications with innovative technology and functionalities. However, they are limited in terms of execution or track record (or both). This year’s visionaries are:
- IFS
IFS
IFS differentiates with its industry focus, offering a set of core features that businesses can augment with additional first and third party capabilities. Its composability strategy aligns particularly well with this, Gartner notes. Yet, its “modular licensing” can improve to better support the approach, so customers can better manage their expenditures.
Gartner Magic Quadrant Niche Players
Niche Players may have success in targeting industry segments or company sizes with deeper functionality than other competitors do. Yet, overall, they lack the execution and vision of market leaders. This year’s niche players are:
- SAP Business ByDesign
- Priority Software
- Plex, by Rockwell Automation
SAP Business ByDesign
SAP Business ByDesign is aimed at lower-midsize organizations. As Gartner gears its Magic Quadrant towards larger enterprises, this overarching aim likely hindered its performance. Nevertheless, the analyst notes its drive for the midsize enterprise market – and its understanding of that market – as a strength. However, it cautions as to the platform’s “portfolio position and future roadmap”.
Priority Software
Like BusinessByDesign, Priority Software goes after smaller, cost-conscious manufacturing customers, chiefly in EMEA. Aligning with this aim, the vendor stands out for its short “implementation lead timeline” and its native warehouse management features for “loading and unloading control”. Gartner notes support documentation and “AI and sustainability” as key cautions.
Plex, by Rockwell Automation
Like its fellow niche players, Rockwell Automation puts forward a “midsize offering” paired with high expertise across this market segment. Its feature plans for embedded Microsoft Teams and extended IoT capabilities for devices are also notable. Yet, Gartner cautions to its “geographically dispersed adoption” and “customer support”.
A Final Takeaway from the Cloud ERP for Product-Centric Enterprises Magic Quadrant
Regular readers of the Gartner Magic Quadrant reports will be familiar with the industry trend analysis that coincides with the research.
Perhaps the most interesting statistic in the 2024 Quadrant for Product-Centric Enterprises is that:
By 2027, 60 percent of customers replacing ERP applications will select software for the platform and business process orchestration capabilities as critical requirements, along with transactional capabilities, in order to deliver more tailored outcomes.
The demand for orchestration will come as more brands implement agentic AI to learn more about these processes and – ultimately – automate them. Look out for this as a key industry trend over the coming years.
For more Gartner Magic Quadrant coverage, check out the following articles: