Cloud ERP for Service-Centric Enterprises

Service-centric enterprises adopt cloud ERP applications to benefit from industry standard sets of process capabilities that produce better business outcomes. Application leaders should use this research to evaluate vendors of cloud ERP application suites as part of a composable ERP strategy.

Market Definition

Gartner defines the market for cloud ERP for service-centric enterprises as a market for application technology that supports the automation of operational activities for service-centric (nonproduct) industries, including financial management, order-to-cash, source-to-pay, human capital management and other administrative capabilities. Cloud ERP for service-centric enterprises is delivered under a SaaS license model (with frequent mandatory updates), where application support, infrastructure provisioning and management are the responsibility of the vendor.

Broadly speaking, ERP solutions enable a variety of enterprise-wide business processes, primarily those associated with systems of record and systems of differentiation. ERP solutions form the core systems that allow an enterprise to conduct business. For service-centric ERP solutions, process enablement covers a wide range of enterprise processes that include:

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

• Order-to-cash (O2C) functionality, ranging from configure, price and quote (CPQ) to cash collection activities.

• Source-to-pay (S2P) functionality, which must cover at least e-sourcing, contract life cycle management, e-purchasing, AP invoice automation, supplier management, collaboration and payments.

• Human capital management (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 service-centric activities, such as extended planning and analysis (xP&A), project management (for project-centric capabilities), service procurement and real estate lease management.

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	Oracle (Fusion Cloud ERP)
Leader	Workday
Leader	SAP (Cloud ERP)
Leader	Microsoft (Dynamics 365)
Leader	Oracle (NetSuite)
Niche Player	Microsoft (Business Central)
Niche Player	Sage
Niche Player	SAP (Business ByDesign)
Niche Player	Certinia

Report 2024

Here is a summary of the vendors featured in the Gartner magic quadrant 2024 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	Oracle (Fusion Cloud ERP)
Leader	Workday
Leader	SAP (S/4HANA Cloud)
Leader	Microsoft (Dynamics 365)
Niche Player	Microsoft (Business Central)
Niche Player	Sage
Niche Player	SAP (Business ByDesign)
Niche Player	Certinia
Challenger	Oracle (NetSuite)