Cloud Based ERP for U.S. Local Government

Enterprise resource planning applications automate local government administrative and financial processes. This research helps local government leaders assess and select cloud ERP vendors as part of an enterprise cloud strategy that emphasizes core process automation and innovation.

Market Definition

Gartner defines cloud ERP services for local government as services provided by the vendor or third-party systems integrators (SI) to assess needs, implement solutions and evolve platforms that are transforming their back-office systems via the implementation of cloud-based ERP solutions. These integrated products include financial management system (FMS)functionality, order to cash (O2C), procure to pay (P2P), grant fund accounting, utility billing, human capital management (HCM), supply chain management (SCM) and other administrative ERP functionality.

Broadly speaking, local government ERP solutions enable a variety of enterprise wide business processes, primarily those associated with core systems that enable the government enterprise to conduct business and deliver services.

For local government ERP solutions, process enablement covers a wide range of enterprise processes that include:

• FMS functionality, including general ledger (GL), accounts payable (AP), accounts receivable (AR) and financial planning.

• P2P functionality, which must cover at least contract life cycle management, e-procurement, AP invoice automation, vendor management, collaboration and payments.

• HCM functionality, which must cover at least administrative HR capabilities, such as core HR data management, employee life cycle transactions and position management.

• Other administrative ERP functionality to support typical local government service-centric activities, such as budgeting, utility billing, grant fund accounting, project management (for project-centric capabilities) and developing a government’s Comprehensive Annual Financial Report (CAFR).

Report 2025

Here is a summary of the vendors featured in the Gartner magic quadrant 2025 report.
For the full analysis and detailed insights, you can read the report here and view the magic quadrant graphic here.

Market Status	Market Vendor
Leader	Workday
Leader	Oracle (Fusion Cloud ERP)
Leader	Microsoft (Dynamics 365)
Leader	Tyler Technologies (Enterprise ERP)
Leader	Infor (CloudSuite Public Sector)
Leader	SAP (S/4HANA Cloud Public Edition)
Visionary	Tyler Technologies (ERP Pro)
Visionary	Oracle (NetSuite)
Niche Player	OpenGov (ERP Cloud)
Niche Player	Springbrook (Cirrus ERP)
Niche Player	CentralSquare (Finance Enterprise)
Challenger	CGI (Advantage)