Agresso (News - Alert) officials reported that the firm ranks number six on the list of vendors for ERP revenue in the Medium-Sized Business Segment, by market research firm IDC (News - Alert). The company also garnered the second highest growth rate of the Top10 ERP vendors in this segment, according to the most recent IDC report.

 

This ranking, IDC officials say, is based on revenue generated for worldwide license, maintenance, and subscription ERP revenue in the medium-sized business segment.

 

According to the IDC report the medium-sized business ERP market will experience an compounded annual growth rate (CAGR) of 11.6 percent CAGR through 2011. This rate will exceed the overall growth rate of 8.1 percent for the entire ERP market as a whole. Agresso's stated goal is to have business revenues of $700 million by 2009.

 

"Agresso has been expanding steadily to claim a growing share of the midmarket ERP space," states IDC in the report, Worldwide ERP Applications 2006 Vendor Shares: Top Vendors in Small, Medium-Sized, and Large Customer Segments.

 

The report indicated that "Agresso is assuming the role of a change agent on behalf of its many customers frustrated with the rigid nature of many enterprise applications."

 

IDC sells global market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. In this report IDC defines the medium-sized business segment as those with 500-4,999 employees.

 

The report notes Agresso's products for responding to constant change, such as "Business Living IN Change," and other financial reporting, HR administration, project resource management and costing and billing offerings.

 

A couple weeks ago Agresso released survey results showing what it says is "a clear trend by business software buyers to favor and re-select their current ERP vendors, despite facing substantially higher than expected costs after implementing those vendors."

 

The survey sponsored by Agresso and conducted by IDC as part of its quarterly AppStats Survey includes more than 250 companies in the U.S. and U.K. An overview of the survey results, titled Mid-Market Service Companies' Enterprise Investment Strategies and Adoption Trends, is available at www.agresso.com/IDC.

 

Forty-seven percent of the respondents said their financial applications costs exceeded their planned budgets as much as 100 percent. According to IDC, this buyer complacency to continue down the same path with the same vendors may be costing public and private sector businesses millions of dollars annually.

 

Eighty-three percent of ERP customers say they will still buy from the same vendor despite cost over-runs and change issues.