Will SOA Overtake ERP?

The answer is yes, according to Bruce Richardson, an analyst for AMR Research. In an Aug. 27 article he discussed why he believes this is the case.

"Here's the doomsday scenario, circa 2010: SAP and Oracle customers have stopped buying applications from their ERP vendors. Instead, they contract with low-cost Indian or Eastern European integrators to build custom composite apps that sit on top of their ERP backbone," he explains.

"Between 2010 and 2012, these same customers start to gripe that their legacy ERP systems have become bloated "understructures" that have become too expensive to maintain. CEOs threaten to withhold maintenance payments if fees aren't sharply reduced. At the same time, the Indian and Eastern European vendors are now offering their own "business process platforms" built around the newest development tools and technologies. They begin replacing large chunks of the ERP backbone with their own software or through business process outsourcing (BPO) products," Richardson continues.

Richardson concludes that the SAO integrators are the ones that benefit from this scenario.

To read the full article visit http://www.amrresearch.com/Content/View.asp?pmillid=19699&pubid=2726&custid=381817

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