Impact of COVID-19 on the Global Cloud Enterprise Resource Planning (ERP) Market
Global Cloud Enterprise Resource Planning (ERP) Market has been negatively affected in recent months due to the outbreak of the pandemic, COVID-19, in December 2019. The pandemic outbreak has resulted in numerous countries imposing lockdowns and shutting down businesses except for essential services (allowed with minimum workforce). Several businesses have increased their focus on profitability and reduced their expenses in ERPs, which is decreasing the demand for cloud ERPs. In addition, several businesses have increased focus on enhancing their core competencies and closed a few offices to cut their expenses, which is further decreasing demand for the cloud ERPs. However, the demand for cloud ERPs is anticipated to recover in the coming months as numerous countries have begun to remove the lockdowns in a phased manner. The governments of several countries across the globe have granted permission to several businesses to restart their businesses keeping in mind the safety guidelines. In the long run, the demand for cloud ERP is anticipated to increase owing to constant innovations and continuous advancements in technology.
The global cloud enterprise resource planning (ERP) market is anticipated to increase at a significant pace owing to constant innovations, continuous advancements in technology, and rapid adoption of the Internet of Things. The cloud enterprise resource planning (ERP) market has numerous advantages, which include cloud ERP being cheaper upfront and easy to use. Cloud software is hosted on the vendor’s servers and can be accessed anywhere through a web browser. Due to the growing number of organizations that want to use ERP as a multi-tiered strategy, cloud ERP has been gaining traction from the last few years. Two key reasons to consider the cloud as a vital solution include lower capital expenditures and a significant decrease in IT cost. Different types of cloud ERPs are available in the market, including public, private, and hybrid. A public cloud ERP is based on the standard cloud computing model, in which a service provider makes resources, such as applications and storage, available to the general public over the Internet. Public cloud services may be free or offered on a pay-per-usage basis. The benefits mentioned above offered by a cloud ERP drive the demand for the product. The demand for cloud ERP is anticipated to rebound from the first quarter of 2021 as several countries prepare to resume their operations to restore their economic situations.
Source: MRFR Analysis
Source: MRFR Analysis