Gartner’s new Magic Quadrant highlights which ERP vendors should be on the evaluation list for product-centric enterprises in the market for a cloud ERP solution, and Acumatica is on the list.
Gartner, a leading information technology research and advisory company, has released their 2021 Magic Quadrant for Cloud ERP for Product-Centric Enterprises. Acumatica is proud to announce that in one year, we achieved incredible growth in both our Ability to Execute and Completeness of Vision as noted by our strong positioning within the Niche Players quadrant.
Gartner Magic Quadrant: Who makes the list?
First things first, how do Gartner ERP analysts decide which cloud ERP vendors to include or exclude from the Magic Quadrant? There are quite a few requirements that need to be met.
ERP providers must have operational ERP (supply chain and manufacturing-related functionality) and financial management (GL, accounts payable, accounts receivable, and fixed assets) capabilities. Optional capabilities include indirect procurement, project accounting, human capital management (HCM), and specialized, industry-specific modules or applications.
Gartner’s Market Presence conditions for vendors are very specific, focusing on how many organizations use their cloud service with a set minimum of expenditures/revenue/funding/managing through the ERP suite along with a minimum dollar amount in booked subscription and support revenue for the ERP suite. Additionally, Cloud Service Attributes requires the ERP suite be deployed as a cloud service under the provided definitions of Responsibility, Licensing and Technology, Customization, and Pace of Change.
The Gartner Magic Quadrant provides further details, including their evaluation criteria. ERP vendors are assessed on their Ability to Execute (how competitive, efficient, and effective their products, technologies, services, and operations are and the positive impact on revenue, client satisfaction, client retention, and general market reputation) and Completeness of Vision (vendor’s ability to clearly address the market’s current/future direction, their customers’ needs, cloud technology trends, and competitive forces, as well as how they will create new opportunities for the vendor and for their clients).
Being included in Gartner’s Magic Quadrant is both a challenge and an honor.
Acumatica Cloud ERP as a Niche Player
The four quadrants are labeled Niche Players, Visionaries, Challenger, and Leaders. Gartner explains that the designations do not determine whether an ERP provider is more or less capable than other providers in the quadrant. For example, Leaders may differ from vendors within the other quadrants because of the market size they cover. Challengers “may have developed a substantial presence in one area of the market, but they do not have a broad-enough vision to execute consistently across the wider market.”
Acumatica Cloud ERP is positioned as a Niche Player. The Gartner analysts declare that Niche Players can offer deeper functionality due to targeting specific industries or company sizes and can be a perfect match for many organizations. Our cloud-native ERP solution, which is sold exclusively through Value Added Resellers and white-labeled in global regions by OEMs, such as MYOB, Cegid, and Lexware, was built specifically for midsize enterprises.
Gartner notes Acumatica’s strengths, including our well-regarded operational ERP capabilities (e.g., manage manufacturing of discrete goods through our manufacturing management software and distributing of goods through our distribution management software) and Acumatica’s consistently high customer satisfaction ratings. As Solutions Review’s Gartner Magic Quadrant recap notes, “Acumatica…sports higher levels of customer satisfaction, with many users expressing appreciation for the company’s product quality and pricing.”
Gartner emphasizes that all categories of vendors are viable candidates for cloud ERP suite evaluation.
Cloud ERP adoptions growing
The 2021 Magic Quadrant for Cloud ERP for Product-Centric Enterprises report forecasts ERP software revenue growth to continue. They note that 2020 grew 4% overall with a global total of $40.3 billion. They anticipate the number to be $44 billion by 2022, a 7% increase on a constant currency basis with product-centric ERP revenue making almost half of the overall ERP market’s revenue. The pandemic affected ERP applications for manufacturing, but administrative and service-centric ERP application revenues rose. Bottom line, Gartner says the adoption rate of cloud ERP solutions is steadily growing.
Acumatica is committed to innovation, customer service, and excellence in the industry, which is verified by these Acumatica reviews and analyst reports. Our experts are also available to answer questions about our cloud ERP software and/or to set up a demonstration.