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Network Effects in the ERP Systems Market - An Analysis of the Implications of Business Intelligence and Cloud Computing

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Executive Summary

Presently the vendors of ERP software are facing threats as well as opportunities by new technological challenges. In particular, business intelligence and cloud computing are, besides others, important trends in the ERP market. It is crucial for the ERP vendors to gain strong positions in both fields to remain competitive. Since, the software market is often influenced by network effect the authors analyzed four big ERP vendors, namely Microsoft, Oracle, Sage, and SAP with respect to these effects on business intelligence and cloud computing. They enriched their analysis by IBM which is not an ERP vendor but is a leading IT company in both fields: business intelligence as well as cloud computing.

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