ENTERPRISE SOFTWARE:

Advantages, opportunities, challenges

Written by Scott Matteson

Data analysis by Meghann Agarwal
December 2015

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Enterprise Software: Credits
Advantages, opportunities, challenges
Global Editor In Chief
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CONTENTS

Contents
Introduction-------------------------------------------------------------- 4

Key findings------------------------------------------------------------- 5

Usage of enterprise software------------------------------------------ 7

Business functions for enterprise software-------------------------- 11

Trends in enterprise software----------------------------------------- 19

Preferred vendors------------------------------------------------------ 21

Satisfaction ratings---------------------------------------------------- 25

Plans for the cloud----------------------------------------------------- 30

Conclusion-------------------------------------------------------------- 32

Survey respondent demographics------------------------------------ 33

Survey methodology--------------------------------------------------- 38

About us---------------------------------------------------------------- 39

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ENTERPRISE SOFTWARE: ADVANTAGES, OPPORTUNITIES, CHALLENGES
4

Introduction
Enterprise software is the engine of many successful organizations, providing complex and diverse functions that
help the business achieve goals and stay profitable. As information grows more critical to strategic endeavors, having
the right tools to manage, utilize, interpret and process this information is a crucial priority.

What is enterprise software? Depending on which individual or department you ask, you may receive a different
answer. That’s not because it’s an ambiguous topic; rather, it’s almost an entire universe of its own within the
technology space.

Examples of enterprise software can include:

Asset management Financial applications

Business intelligence Identity management

CRM (customer relationship Order or retail software

management) utilities
Process management
Data processing
Resource planning
Databases

Enterprise software can run on either individual machines or on centralized servers, whether in-house, located in
the cloud or a hybrid combination of the two.

Because the utilization and management of enterprise software continues to remain at the forefront of key
business initiatives, we have covered the topic for the past few years. Annual reports in 2013 and 2014 indicated
some interesting comparisons:

Statistical Finding 2013 2014

Companies using enterprise software 53% 50%

Companies planning the use of enterprise software 28% 29%

Companies “very satisfied” with enterprise software 27% 26%

Companies “very dissatisfied” with enterprise software 5% 8%

Business intelligence, customer relationship management and financial management were the top three reported
business functions for enterprise software in 2013 and 2014.

The top three preferred enterprise software vendors in 2013 were Microsoft, SAP and Oracle compared with
Microsoft, Adobe and SAP in 2014.

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ENTERPRISE SOFTWARE: ADVANTAGES, OPPORTUNITIES, CHALLENGES
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The top three reasons for satisfaction with enterprise software in 2013 were the ability to improve operational
efficiencies, clear value to company/departments and reliability of data/software. Compare this to 2014 answers
awarding praise to the reliability of data/software, the ability to improve operational efficiencies and performance;
the trends appear largely the same.

In similar fashion, the top three reasons for enterprise software dissatisfaction in 2013 were difficulty of
implementation, problems with/inability to integrate with enterprise applications and poor vendor support/
tutorials/training. This was similar to 2014 respondents who chose poor vendor support/tutorials/training, lack of
automation and difficulty of implementation as their top three selections.

One of the goals of our survey was to not only analyze the current trends surrounding enterprise software but to
see how things have changed over the past two years. Let’s look at our key findings first.

Key findings
69% of respondents currently use enterprise software and another 9% are considering an
implementation within a year.

Use of enterprise software increases with organization size; 34% of small companies (fewer than 50
employees) and 61% of large companies (1000 or more employees) have implemented it.

Small companies were far more likely to not use or have a plan for enterprise software (nearly 22
times more likely than large companies, and over three times more likely than small to medium
organizations).

Implementation expenses, lack of business need and uncertainty regarding value were the top three
reasons against enterprise software.

Databases, storage and human resources were the most popular business functions towards which
companies are using or considering enterprise software, however mobility was also cited as a strong
category for future deployments.

Microsoft, Google and Adobe are the top three most common vendors chosen by respondents both
for current and future enterprise software deployments.

Customer Relationship Management (CRM), Business Intelligence (BI), Financial Management and IT
Service Management/System Integration were the top four components of enterprise software in use.

The evolution of enterprise software is oriented towards universal access, compatibility/integration

with other apps and client-side web apps, followed by HTML5.

24% of respondents were “very satisfied” with their current enterprise software products and another
55% described themselves as “somewhat satisfied.”

Only 4% of respondents stated they were “very dissatisfied” with enterprise software and 17%
“somewhat dissatisfied.”

By a large margin the ability to improve operational efficiencies and ease of use/administration were
the top two determiners of satisfaction.

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ENTERPRISE SOFTWARE: ADVANTAGES, OPPORTUNITIES, CHALLENGES
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Difficulty of implementation, problems with/inability to integrate with enterprise applications and poor
vendor support/tutorials/training were the three most commonly chosen reasons for dissatisfaction
with enterprise software.

Nearly a third of respondents have replaced enterprise apps with cloud services within the past year,
or intend to do so in the next year and just slightly less are opting for a hybrid approach.

Once we gathered the data, our first step was to analyze usage trends for enterprise software to measure it’s
presence among businesses – and who is making the calls behind it.

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ENTERPRISE SOFTWARE: ADVANTAGES, OPPORTUNITIES, CHALLENGES
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Usage of enterprise software

CURRENT USE OF, OR FUTURE PLANS FOR ENTERPRISE SOFTWARE

Number of respondents, n=215

Figure A

Over two-thirds of respondents (69%) have an enterprise software solution in place, and another 9% are
considering an implementation. This is quite a shift from the small decrease in enterprise software usage between
2013 and 2014 (a 3% decrease, but it’s important to factor in the 2-3% margin of error).

While the “current use” percentage has spiked upwards from prior years, the same has applied in reverse to the
“planning” percentage, quite probably because these companies have completed their plans.

Companies stating they do not use enterprise software and have no such future plans are roughly the same as
from 2014; 22% compared to 21%.

We examine this question’s response based on company size to gain more insight:

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ENTERPRISE SOFTWARE: ADVANTAGES, OPPORTUNITIES, CHALLENGES
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CURRENT USE OF, OR FUTURE PLANS FOR ENTERPRISE SOFTWARE (BY COMPANY SIZE)

Number of respondents, n=215

Figure B

We currently use an enterprise software solution We do not currently use an enterprise software solution but
are considering implementing one in the next 12 months
We currently use an enterprise software solution
and are considering adding others We do not currently use an enterprise software solution and
have no current plans to implement one in the next 12 months

Here we can see the increasing prevalence of enterprise software as organizations get larger; the correlation of
company size is quite obvious. Compare these figures to the 75% and 68% of large companies using enterprise
software in 2014 and 2013, respectively (prior years did not break the question down into those using enterprise
software vs. those who are using it and considering adding others).

Smaller companies (fewer than 50 personnel) are more than three times as likely to rule out enterprise software as
medium-sized or higher organizations. This element will play a key factor later when we assess the results of this data.

We gathered input from those who have opted against enterprise software to determine why this is not a fit for
their company:

REASONS FOR NOT USING AN ENTERPRISE SOFTWARE PRODUCT

Number of respondents, n=47

Figure C

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Implementation expenses have consistently ranked as among the top reasons against enterprise software, as well
as a lack of business need/uncertainly regarding value.

It’s noteworthy that “too difficult to settle on a vendor/option” has steadily been chosen less often over the past 3
years, proving that vendors are becoming more well-known and the decision process in choosing them has eased.

“Other (Please specify.)” responses:

Company is too small

Linux and free software

None of my clients are large enough to warrant enterprise level

Open source / open license software meets our needs

There is consistently far too much insecurity across the gamut of MS products

User community not ready

Using Open Office

We have our own

We asked respondents to identify the decision makers responsible for opting for or against enterprise software so
that we could gauge the responsible parties involved.

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KEY DECISION-MAKERS FOR ORGANIZATION REGARDING ENTERPRISE SOFTWARE

Number of respondents, n=168

Figure D

The IT director was the most frequent choice, followed by the CEO. The CIO, CFO, CTO and COO were chosen in
descending order, showing the key decision makers after the IT department are usually the more well-known “C”
level executives.

Having established where enterprise software is in use (and by whom), we looked at how it’s actually being used.

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Business functions for enterprise software

BUSINESS FUNCTIONS FOR WHICH ENTERPRISE APPS ARE BEING CONSIDERED

Number of respondents, n=168

Figure E

Each respondent selected 2-3 answers, on average.

Most respondents (70%) are using or considering enterprise apps for databases. Around half selected storage
(56%) or human resources (48%). A smaller group selected mobile (36%) or big data (27%).

Some of the more common “Other (Please specify)” responses included business functions such as finance/
payroll/accounting, CRM, ERP, and office apps.

The full list of “Other (Please specify)” responses:

Accounting and CRM Education

Accounting, inventory, invoicing, MRP Email

ALM - Software Engineering/Software Engineering

Factory
Enterprise search
Automotive Diagnostics, Maintenance,
ERP
Service, and Repair
ERP & CRM
Cloud computation
ERP, Portal, issue tracker
Collaboration and DMS
FInancials
Communications
General ERP (Purchasing, Production,
CRM
Sales, Accounting)
Disaster Recovery
Integration
Document management system
Learning management system

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Logistics, Financial, BI, Production Project Management

Managing proposal/internal documents Project management and coordination

Manufacturing Sales

Medical Practice Management Security

Office Management, including Accounts Source control

Payable and Receivable
Student information system; student
Office Productivity collaboration; targeted admin/service
functions
Operations
Supply chain management
Organizing
Upgrade website software applications
Product

Productivity

We gauged which of these functions had been implemented in the past year as a way to determine recent trends
among enterprise software usage.

BUSINESS FUNCTIONS FOR WHICH ENTERPRISE APPS HAVE BEEN DEPLOYED

IN THE PAST 12 MONTHS

Number of respondents, n=168

Figure F

Each respondent selected 2 answers, on average.

Business functions follow the same order of popularity among respondents as in the last question: databases,
storage, human resources, mobile, then big data. Databases were the most frequently deployed function in the
past year, followed by storage and human resources.

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ENTERPRISE SOFTWARE: ADVANTAGES, OPPORTUNITIES, CHALLENGES
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We asked this same question in the 2014 survey as it applied to expectations regarding the next 12 months,
so the above graph depicts the results of those efforts. In 2014, mobile was chosen most frequently (44%)
followed by big data (31%) and databases (12%). Storage and human resources only received marks of 7%
and 6%, respectively, so it is interesting to note that the three least-picked selections in 2014 turned out to be
the three most popular selections in 2015. Priorities and capabilities can change as plans merge with reality. It’s
also possible that enterprise software offerings in the mobile and big data sectors have not been on par with
expectations, resulting in growth in other areas instead.

“Other (Please specify)” responses:

All Lectures

BPM, CRM, Marketing, Logistics, Identity Management reporting

Management, Analytics, BI, Productivity
Manufacturing
CRM
Medical Practice Management
Disaster Recovery
None
Education
Office Productivity
Email
Organizing
ERP
Productivity
Financials
Project Management
Forms
Sales
Integration
Supply chain management
Invoicing
Telecommunication

We asked the same question as it applies to future plans as well:

BUSINESS FUNCTIONS WHERE ENTERPRISE APPS WILL BE DEPLOYED

IN THE NEXT 12 MONTHS

Number of respondents, n=168

Figure G

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ENTERPRISE SOFTWARE: ADVANTAGES, OPPORTUNITIES, CHALLENGES
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Each respondent selected 2 answers, on average. Databases are still favored, but only ahead of mobility by a
razor-thin margin.

“Other (Please specify)” responses:

Accounting and CRM None

Cloud computation Office

Collaboration and DMS Real-time analytics, collaboration, CRM,

BPM driven case management
Device deployment
Sales & Marketing
Disaster Recovery
Security
Education
Communication
Enterprise search
Student/teacher collaboration
ERP
Supply Chain Management and Finance
Knowledge Management
Web improvement
Manufacturing

Medical Practice Management

Here is a chart to compare the past and future Enterprise Software deployments:

COMPARISON OF WHERE BUSINESS FUNCTIONS FOR WHICH ENTERPRISE APPS

HAVE BEEN DEPLOYED IN THE PAST 12 MONTHS AND WHERE THEY
WILL BE DEPLOYED IN THE NEXT 12 MONTHS

Past 12 months

Next 12 months

Number of respondents, n=168

Figure H

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Compared to the past 12 months, significantly more respondents anticipate deploying mobile enterprise apps in
the next 12 months (39% vs 24%). There is also a bit more anticipation about deploying big data enterprise apps
(24% vs. 19%). This is a sign that hopefully enterprise software offerings can deliver in these realms.

Conversely, there are fewer plans to implement human resources, storage and database enterprise apps, likely
because these are already in place.

We then delved further into how enterprise software is benefiting companies by looking at the details of what it’s
doing:

BUSINESS FUNCTIONS CURRENTLY BEING USED WITH AN ENTERPRISE SOFTWARE PACKAGE

Number of respondents, n=168

Figure I

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Each respondent selected 5-6 answers, on average.

Clearly, Customer Relationship Management (CRM) was the winner, with strong showings by Business Intelligence
(BI), financial management and IT service management/system integration (this data matches the 2014 enterprise
software report). However, most of the other categories here were reported as being in use by at least a quarter of
respondents.

Enterprise software plays much less of a role in enterprise search, manufacturing/supply chain operations,
business continuity and database operations. This last issue seems to counteract the fact databases were a
popular function for which to deploy enterprise applications, however it is important to note many functions have
databases, but database operations themselves can be their own function. In other words, enterprise software can
entail many uses of databases, but databases on their own (IBM DB2 management for instance) may not need
enterprise software to manage them.

Other elements of comparison between current results and 2014 data:

Project management has gained popularity (32% in 2015 vs. 22% in 2014)

Content management systems have gained popularity (35% in 2015 vs. 26% in 2014)

Business process management has decreased in popularity (24% in 2015 vs. 30% in 2014)

Human capital management has decreased in popularity (20% in 2015 vs. 31% in 2014)

“Other (Please specify.)” responses:

ALM - Software Engineering

Education

Office Productivity

Organizing

Product development

Supplier Management, Sourcing/Purchasing, LIMS

Our next question was a general one; “which of your business functions would benefit from an enterprise software
product or function which is currently not present or available? (Please specify)?” Our purpose was to allow
respondents to fill in the blank to state which of their needs were currently unfulfilled by enterprise software. Here
are the responses, which were diverse and interesting:

Accounting

Accounts management with cloud storage

All R&D having to develop software (embedded or service)

Auto diary record/merge with location integration

Better support of apps on Microsoft devices

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Each respondent selected 5-6 answers, on average. Office Productivity

Organizing
Clearly, Customer Relationship Management (CRM)
was the winner, with strong showings by Business Product development

Intelligence (BI), financial management and IT service Supplier Management, Sourcing/

management/system integration (this data matches the Purchasing, LIMS
2014 enterprise software report). However, most of the
Our next question was a general one; “which of your
other categories here were reported as being in use by
business functions would benefit from an enterprise
at least a quarter of respondents.
software product or function which is currently not

Enterprise software plays much less of a role in present or available? (Please specify)?” Our purpose

enterprise search, manufacturing/supply chain was to allow respondents to fill in the blank to state

operations, business continuity and database which of their needs were currently unfulfilled by

operations. This last issue seems to counteract the enterprise software. Here are the responses, which

fact databases were a popular function for which to were diverse and interesting:

deploy enterprise applications, however it is important Accounting

to note many functions have databases, but database
Accounts management with cloud
operations themselves can be their own function. In storage
other words, enterprise software can entail many uses
All R&D having to develop software
of databases, but databases on their own (IBM DB2 (embedded or service)
management for instance) may not need enterprise
Auto diary record/merge with location
software to manage them. integration

Other elements of comparison between current results Better support of apps on Microsoft
devices
and 2014 data:
Business process automation for HR,
Project management has gained
Finance, Operations
popularity (32% in 2015 vs. 22% in 2014)
Business process management
Content management systems have
gained popularity (35% in 2015 vs. 26% Call center/customer service
in 2014) Capacity planning
Business process management has Capital Finance
decreased in popularity (24% in 2015 vs.
Centralize and prioritize comprehensive
30% in 2014)
business areas
Human capital management has
Collaboration
decreased in popularity (20% in 2015 vs.
31% in 2014) Collaborative tools between problem
tracking and product backlog
“Other (Please specify.)” responses:
Consulting, records management,
ALM - Software Engineering certification and compliance
Education

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Content management Marketing

CRM Marketing prospection

CRM for maintaining up-to-date and Mobile

accurate information on contacts and
Office 365
workflows, and Unified Communications
to help facilitate this Order Processing

Customer service and CRM Overall management

Data management, specifically, digital Procurement

asset management Production
Disaster recovery Project Management
Distribution R&D in database and communication
Document management Recruitment
Enterprise content management Sales
Enterprise document management Sales (--> CRM)
Enterprise IT hardware/software Sales and Marketing
management; fully functioning document
Management/sharing solution Sales Management

Estimating Scanned document storage

File sharing and backup Secure mobility

Finance and sales Single sign on

Global workflow / enterprise social Social Media Contact Management

network Student administration
Human Resources Supply chain
Integration Supply chain & logistics
Internal Audit Tighter integration with customer
Internet and telephone marketing and Trading desk
consulting
Unified communications
Inventory receiving
VOIP / QueueMetrics and Service
Invoicing Management Metrics
IT operations Wider use of mobility/ Web content
IT support management.

Machining data Workflow

Manufacturing

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Clearly there are many potential areas which could be mined to find a fit (or a better one) for enterprise software,
based on these needs. Many of these revolve around the improved use of data and using it to more efficiently
guide and manage the business.

Among the least-popular business uses of enterprise software, only manufacturing appears here, showing that the
field may yet be untapped but there is potential for expansion there.

Of course, needs are often linked to trends, with one driving the other in round robin fashion. So which trends have
been tied to enterprise software over the past year?

Trends in enterprise software

TRENDS THAT HAVE DRIVEN THE EVOLUTION OF ENTERPRISE SOFTWARE
OVER THE PAST 12 MONTHS

Number of respondents, n=168

Figure J

Each respondent selected 2 answers, on average.

Universal access and compatibility/integration were nearly tied for the most popular choice. Clearly, respondents
want to access their enterprise software in numerous ways and for it to connect with other applications for better
usability.

Client-side web apps were chosen by another 43% of respondents. HTML5 was selected by nearly a quarter of
those who took the survey, and there was very little interest in gamification.

In 2014 we asked the same question as it applied to the next 12 months. Answers largely mirrored the results
shown above, demonstrating the trends shown above have remained consistent.

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“Other (Please specify)” responses:

1:1 Chromebook initiative for students

Apps that are similar but can be personalized side by side like two different Google drives or a cloud
service to distinguish them

Changes in industry specific reporting (ICD-10)

Chrome OS

Cloud technology

Cost

Cost/loss of various resources (time, money, support, etc.)

CRM

Digital Transformation

Enterprise security

Growth of our organization leading to collaboration across locations

IT Security

Long term stability and savings due to efficiency and simplification

New PMO initiatives

Outdated existing systems

Productivity and control

Reliability

Scale of data, plus an ability to apply uniform product across company and client

Team integration and collaboration

Too many disparate systems

UX

The next step of our survey was to examine the vendors who are delivering the goods in the enterprise software
space.

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Preferred vendors
ENTERPRISE APPS/VENDORS IN USE AT COMPANY

Number of respondents, n=168

Figure K

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Each respondent selected 5-6 answers, on average.

Microsoft, Google and Adobe Systems were by far the top three preferred vendors (and since the #4 choice, Office
365 is a Microsoft product it shows how well Microsoft has dominated the enterprise software scene). In fact,
Microsoft’s popularity has risen from 43% in 2013 to 56% in 2014 to 63% in 2015.

However, Google has also demonstrated some amazing gains in this area as well; although it was commonly
chosen as an “other” choice in the past two years, here we can see it in use in half of our respondent
organizations. Dropbox and LinkedIn enjoyed similar gains as well, barely mentioned last year and now in use at
26% and 22% of respondent organizations, respectively.

Conversely, vendors such as SAP, Oracle, JBoss (Red Hat) and CA Technologies have lost ground – Oracle in
particular, as it was among the top three vendor choices in 2013. In fact, usage of SAP and Oracle has been
consistently decreasing since 2013, according to survey participants.

“Other (Please specify)” responses:

Accenture Fiserv MYOB

Apache Open Office Freshdesk OpenEdge

Suite
GE OpenText
Atlassian Confluence
Global Shop (an ERP PathGuide Latitude
Atos system)
Primavera Software
Blackboard ILP Henry Schein Practice
ProfitBoost
Solutions
CGI
QAD
In-house solutions
CINCOM
QR
Intenda Solution Suite
Cincom
Siemens
Invensys
Cisco
Smartsheet
JIRA
Collabnet
Sprint
Kofax
Dell
Tableau
Kukui Platform
Dell (AppAssure)
Trello
Labware
Dynamsoft
Vmware
Level 3 conferencing
Ellucian Colleague
WORKetc
LibreOffice
Epicor Prophet 21
Zimbra
MS CRM in a private
tFamous Software LLC
cloud

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Our next question focused on which vendors respondents were planning to use or evaluate:

ENTERPRISE SOFTWARE VENDORS PLANNED TO BE USED OR EVALUATE

IN THE NEXT 12 MONTHS

Number of respondents, n=168

Figure L

Each respondent selected 2 answers, on average.

This list is fairly comparable to the graph demonstrating vendors in use. Microsoft tops the list (36%) again,
followed by Google (26%) and Adobe Systems (18%), then IBM, Oracle, Salesforce, and SAP (12-14%). The fact
that Oracle and SAP rank fairly high among “planned” vendors shows they may not be permanently losing traction
in the Enterprise Software space – the battle may yet continue.

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“Other (Please specify.)” responses: PAYCOR

Apache Open Office Suite Primavera Software

Cornerstone OnDemand Slack

Dynamsoft Slack

ENALEAN Smartsheet

Fiserv Softdocs

Global Shop Solumina

Henry Schein Practice Solutions Sunview

IBM SCCD Teamcenter

In-house apps TeamworkPM

Intenda Solution Suite Trello

Lexmark WebEx

LibreOffice WORKetc

MYOB

Our next focus is on respondent satisfaction levels with the enterprise software deployment at their organization.

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Satisfaction ratings
SATISFACTION WITH ORGANIZATION’S CURRENT ENTERPRISE SOFTWARE PRODUCT(S)

Number of respondents, n=168

Figure M

More than three quarters (79%) of respondents report satisfaction with their enterprise software. The “very
satisfied” answer was chosen 27% of the time in 2013 and 26% of the time in 2014, showing this figure has
remained roughly static (given the usual margin of error).

Dissatisfaction levels have fluctuated slightly. This figure represented 24% of respondents in 2013, 13% in 2014,
and 21% in 2015. Overall, however, enterprise software is consistently meeting most user expectations by a
comfortable margin.

How do respondents establish their criteria for satisfaction?

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FACTORS DETERMINING SATISFACTION WITH ENTERPRISE SOFTWARE PRODUCTS

Number of respondents, n=168

Figure N

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Each respondent selected 9 answers, on average.

“Operational efficiencies” and “ease of use/administration” are clear priorities when it comes to enterprise
software, and products which can deliver on both will receive high marks. Operational efficiencies in particular
have been a common criteria for determining satisfaction with enterprise software over the past three years.

“Clear value to company/departments” and “reliability of data/software” have also ranked highly among survey
respondents across multiple surveys.

“Mobile device capability,” innovation,” “cloud integration” and “licensing structure” are factors which have grown
in prominence. Conversely, “open source” and “forecasting for trends” have decreased in significance among
respondents.

“Other (Please specify)” responses:

Customer Experience

Ideally (though I don’t think it’s possible) for all our software to be able to operate on Linux

Minimal training (voluntary workers already use products in home environment)

Non-compliant uses of messaging relays, lack of archival and retrieval, use of data mining and BI as
a result of intellectual property agreements and loss of business privacy

Proven vendor investment in increased functionality of products

Rapid Automotive Diagnostics

Next on our agenda came our analysis of the factors behind dissatisfaction with enterprise software:

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ENTERPRISE SOFTWARE: ADVANTAGES, OPPORTUNITIES, CHALLENGES
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FACTORS CONTRIBUTING TO DISSATISFACTION WITH ENTERPRISE SOFTWARE

Number of respondents, n=168

Figure O

Implementation woes was the significant front-runner among those who were dissatisfied (and this has increased
from 31% to 52% over the past year), followed by integration problems (another increase from 23% to 42%) and
poor experiences with vendors. This latter choice was the #1 selection in 2014 by dissatisfied respondents and it’s
clear that this remains a negative factor.

“Lack of collaboration”, “poor or no security controls,” “no mobility/browser-based access” and “lack of enterprise
forms automation” are growing concerns, as evidenced by the fact these answers are now more commonly
chosen by respondents than in prior surveys. On the other hand, “lack of big data integration,” “no open source
capability” and “lack of interactive product catalog” are decreasing in priority, showing these elements are less
likely to provoke dissatisfaction.

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ENTERPRISE SOFTWARE: ADVANTAGES, OPPORTUNITIES, CHALLENGES
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“Other (Please specify)” responses:

Bad performance

Bloatware

Cost

Ease of use

Extent of customization supported

Poor basic reporting functions

Usability

Use of private intellectual property metrics and service management rights

Our final pair of questions revolved around the universal theme which runs through technology and projects
related thereto: the cloud. We asked about the topic last year and now return to it again this year to match
expectations with reality.

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Plans for the cloud

HAVE YOU REPLACED ENTERPRISE APPS WITH CLOUD SERVICES IN THE PAST 12 MONTHS?

Number of respondents, n=168

Figure P

The cloud demonstrates a substantial foundation for enterprise software, with more than half (58%) of respondents
using it either in dedicated or hybrid fashion. Another 15% are ready to commit to the use of the cloud for
enterprise software on at least a partial basis. Approximately a quarter of respondents (26%) have no plans for it,
however.

We asked respondents this question in 2014 as how it applied to the next 12 months. A similar amount of
respondents (59%) reported using cloud services, and roughly similar figures applied to those planning to do so
and those who ruled it out.

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DO YOU INTEND TO REPLACE ENTERPRISE APPS WITH CLOUD SERVICES

IN THE NEXT 12 MONTHS?

Number of respondents, n=168

Figure Q

Answers to this question were quite similar to those of the previous question; 59% use the cloud and about a
tenth plan to do so down the road. Respondents made it clear they’re very certain about their use – or rejection –
of the cloud.

There has been a sea change here. In 2013 about one-third of respondents thought cloud integration was
important, and the fact that now approximately twice as many feel the same way proves the driving ubiquity of the
cloud and the versatility in which it can provide a fit for many organizations. Cloud services have not threatened
the growth of enterprise apps, as was speculated last year, but actually enhanced it.

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Conclusion
Enterprise software is in an excellent spot – it is commonly deployed with a solid vendor base and high levels
of user satisfaction. It services multiple business functions across the industry, from Customer Relationship
Management to enterprise search. The cloud continues to aid, rather than slow, the increased adoption of
enterprise software.

Advantages of enterprise software are clear: it improves business efficiencies, offers ease of use and
administration, is customizable, has good total cost of ownership (TCO) levels and provides advantages with
databases, storage, human resource elements. However, there is still room for improvement in the mobility and big
data sectors which are in demand.

Universal access, compatibility/integration with other apps, ease of implementation, quality vendor interactions,
collaboration and automation remain key trends and factors on which enterprise software should also continue
focus in order to ensure - and improve - continued user/administrator satisfaction. Mobility and big data, in
particular, are fields which are ripe for solutions if vendors can deliver the goods.

In 2013 we observed that the widespread variety of vendors might limit enterprise software adoption and that
“vendors should be more than willing to educate, accommodate and improvise to ensure their offerings fit
customer needs, no matter how wide-ranging or diverse.” Clearly vendors have seized these opportunities. The
difficulties of the past in choosing the right vendor have largely vanished. Microsoft continues to lead the pack
among vendors, though several relatively recent newcomers such as Google, Dropbox and LinkedIn are also vying
for the crown. Adobe remains a solid and reasonable choice but Oracle should take heed of the responses here
and shore up their enterprise software foundation, lest it erode underneath them. However, based on the diversity
of respondent vendor options, there is plenty of room at the table for mainstream and niche products in this space
– so long as vendors can stay relevant.

Despite the boom, the roadblocks against enterprise software remain consistent – the cost of implementation
and lack of business need/perceived value continue to be major sticking points. In addition, as we’ve observed
in previous years, company size remains a staunch determining factor in the deployment of enterprise software.
In 2013 we suggested that “reaching out to small but expanding organizations to educate them on enterprise
software potential would be a valuable move for enterprising vendors.” This advice can still apply as the statistics
involving enterprise software usage remain similar; smaller companies are less likely to see a need for it – or
perhaps to secure funds to deploy it.

Here’s where the cloud can tie in. As cloud deployments continue, one area in which we’d like to see improvement
is the cost factor which should fit within the “better, faster, cheaper” theme often espoused by cloud vendors. This
is a perfect opportunity to put this mantra to the test. Given the fact enterprise software is truly a Swiss army knife
with multiple complex uses and applications, the final frontier in this realm may well be the organizations with 50 or
fewer employees.

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Survey respondent demographics

FULL-TIME EMPLOYEES AT RESPONDENTS’ COMPANY

1000 or more

250-999

50-249

Fewer than 50

Number of respondents, n=215

Figure R

Our survey respondents were balanced fairly well across organizational sizes, with well over a third representing
small (fewer than 50) and about a fifth employed by large (1000 or more) companies. Another quarter or so of
those who took the survey worked in companies of 50-249 employees, and the smallest amount (15%) were
based on mid-size organizations of 250-999 workers.

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RESPONDENTS’ PRIMARY JOB FUNCTION

Other

IT staff

IT consultant

IT manager

Executive IS/IT management

(CIO, CTO)

Executive management
(Chairman, CEO, CFO,
Partner)

Number of respondents, n=215

Figure S

Management comprised almost two-thirds (61%) of our respondents’ job functions with another fifth representing
hands-on staff and consultants.

“Other” responses included:

Business Area Middle Management HR Manager

Business Development Internal Audit Manager

CMO Marketing

COO Operations staff

Director Product Management

Engineering Professor

Enterprise Architect Sales

HCM Technology Director Senior Project Manager

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RESPONDENTS’ AGE RANGE

Number of respondents, n=215

Figure T

The majority of respondents (57%) represented the 41-60 age range, with another quarter representing 40 and
younger. Millennials were a small minority among survey takers; relatively few (9%) occupied the 18-24 or 25-30
age ranges, in contrast to a larger percentage (19%) representing 61 and above.

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PRIMARY INDUSTRY SECTOR AT RESPONDENT’S ORGANIZATION

Online/Web/ISP/ASP

Entertainment

Logistics & Transport

Legal & Professional

Research & Development

Non-Profit

Media/Publishing/Advertising

Telecommunications

Automotive/Aerospace

Healthcare

Engineering & Construction

Retail & Wholesale

Manufacturing (FMCG)

Government

Finance/Banking/Insurance

Education

Business Services/Consulting

Other (Please specify)

IT & Technology

Number of respondents, n=215

Figure U

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The IT & Technology sectors were the most commonly represented by our survey respondents, and almost a third
(29%) were in Business Services/Consulting, Finance/Banking/Insurance, Government and Manufacturing.

“Other” responses were the second-most commonly selected choice and included:

“Agriculture” “Design Services”

“Car & Equipment Rental” “E-commerce”

“Content writing and self-publishing” “Travel”

RESPONDENTS’ PRIMARY REGION

China

India

Canada

Australia / New Zealand

Asia-Pacific

Europe

US

Number of respondents, n=215

Figure V

Almost three-quarters (72%) of those who took our survey were located in the United States and Europe. Another
tenth represented Asia-Pacific. The rest were located in Australia/New Zealand, Canada, India and China,
respectively.

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Survey methodology
Tech Pro Research opened the enterprise software survey to IT professionals around the globe. Tech Pro Research
promoted the survey through editorial coverage and newsletters. Participation was voluntary and 216 respondents

completed the survey.

WHEN: Sept. 23-Oct. 18, 2015

TO WHOM: The IT decision-makers in organizations across the U.S., Canada, Europe, India, Asia-Pacific, China,
Australia and New Zealand

APPROACH: Quantitative study, fielded online

TOPICS:

Current and future plans for enterprise software

Business functions for enterprise apps

Satisfaction with enterprise software

Evolution of enterprise software

Enterprise software trends

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About Scott Matteson

Scott Matteson is a senior systems administrator, consultant and freelance technical writer. He has worked in
technology since 1993, starting out with DOS, moving onto Netware and Windows NT, and now specializes in
Windows/Active Directory, email administration, virtualization, VOIP, system security and Google products. He also
writes fiction and non-fiction and publishes weekly posts on TechRepublic. He resides in the Greater Boston area
with his wife and three children.

About Meghann Agarwal

Meghann Agarwal is a physics PhD student at the University of Texas, Austin, working on computational modeling
of galaxy formation and evolution. Prior to that she worked as a test engineer at IBM Research. She enjoys
learning new technologies and deriving insight from data. She lives in Austin.

About Tech Pro Research

Tech Pro Research provides the information that IT leaders need to make informed decisions and solve today’s
toughest IT problems. We encourage you to explore all we have to offer:

Original, in-depth research reports on global IT trends

Analyst briefings on the latest tech from industry experts

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Comprehensive ebooks compiled from the best of TechRepublic and ZDNet

(our award-winning sister sites)

Visit us at www.techproresearch.com.

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