For an interesting and expansive overview of the changes enterprise software underwent last year, take a look at an article by IDG News Service's Chris Kanaracus. While it would be going too far to say that the sector saw transformative change in 2011, it did experience some significant advances, he writes.

Both SAP (NYSE: SAP) and Oracle (NASDAQ: ORCL) learned to "accept cloud reality," as evidenced by the former's purchase of SuccessFactors and the latter's purchase of RightNow, Kanaracus writes. Together, the two acquisitions of cloud-based software makers cost $5 billion, and they marked a turning point for the traditional, on-site software industry. The influence of cloud computing can also be seen in Oracle's long-awaited delivery of Fusion Applications, which can be deployed as needed, adding to existing systems. Oracle's "message of easier, more flexible consumption for Fusion is straight from the cloud-vendor playbook," he writes.

SaaS vendor Workday made notable inroads into the enterprise, landing a big deal for its human capital management (HCM) offering with Kimberly-Clark, and elevating the profile of software as a service in non-CRM functions. Meanwhile, SaaS ERP offerings gained prominence as a number of vendors, including Microsoft (NASDAQ: MSFT), announced cloud-based services. The ERP space overall experienced continued consolidation, giving Oracle and SAP potential new competition down the road.

A look back on 2011 wouldn't be complete without noting the impact of social media. Oracle, SAP and Salesforce.com all announced social networking initiatives.

For more:
- see Chris Kanaracus's article at InfoWorld

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