The ERP market has seen a lot of mergers and acquisitions activity recently, and while the shake-up may not have had a direct impact on you, it likely will down the road. To maximize your own long-term ERP strategy, analyst Albert Pang suggests you take several steps now.

This year's M&A activity includes the acquisition of Lawson by Infor, and the purchase of Epicor and Activant by a private equity firm that merged the two, notes Todd R. Weiss in a post at CIO. Constellation Software is looking into its options, which include possible sale. The top five vendors as of this spring were SAP, Oracle (NASDAQ: ORCL), Sage, Infor/Lawson and Microsoft (NASDAQ: MSFT), but in Pang's view it is "premature to think that Oracle and SAP are going to be able to sustain their existing lead in the ERP market over time."

Pang recommends keeping an eye on your options so you are prepared in the event your vendor is snatched up. Come up with three viable alternatives that can meet 99 percent of your needs, and be sure to establish that they can support your needs throughout the product cycle. Less well-known vendors sometimes can be the best option, especially if special features are required, he advises. 

"If you are competing in the Latin America region, where Spanish is often spoken, then the vendor TOTVS can be a good selection because their applications are localized," Pang says.

It is also a good idea to keep an eye on what approaches the various vendors are taking with regard to cloud computing. Cloud-based ERP holds out the potential for less maintenance, lower costs and improved efficiencies, Pang advises. Finally, as consolidation persists, watch the changes to get an idea whether your vendor will be here when you need it. 

For more:
- see Todd R. Weiss's post at CIO

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