{"id":66735,"date":"2025-01-21T15:39:27","date_gmt":"2025-01-21T15:39:27","guid":{"rendered":"https:\/\/www.cxtoday.com\/?p=66735"},"modified":"2025-01-23T08:37:51","modified_gmt":"2025-01-23T08:37:51","slug":"gartner-magic-quadrant-for-cloud-erp-for-service-centric-enterprises-2024","status":"publish","type":"post","link":"https:\/\/www.cxtoday.com\/crm\/gartner-magic-quadrant-for-cloud-erp-for-service-centric-enterprises-2024\/","title":{"rendered":"Gartner Magic Quadrant for Cloud ERP for Service-Centric Enterprises 2024: The Rundown"},"content":{"rendered":"<p>The Cloud ERP for Service-Centric Enterprises 2024 Magic Quadrant is here, with Oracle (Fusion Cloud ERP) in the top-right corner for consecutive years.<\/p>\n<p>However, Oracle is not alone as a Magic Quadrant leader. It&#8217;s joined by Workday, SAP (S\/4HANA Cloud), and &#8211; in a change from the 2023 edition &#8211; Microsoft (Dynamics 365).<\/p>\n<p>That is the only significant shift in positioning, with no other vendors switching quadrants from last year.<\/p>\n<p>Interestingly, many vendors have multiple products included in the study. Indeed, Oracle (NetSuite) sits in the challenger square. Meanwhile, Microsoft (Business Central) and SAP (Business ByDesign) are niche players.<\/p>\n<p>Sage and Certina also feature as niche players, pegged to the bottom-left of the Magic Quadrant matrix.<\/p>\n<p>Gartner has added no new vendors to its 2024 report.<\/p>\n<h2>The Definition of a Cloud ERP for Service-Centric Enterprises<\/h2>\n<p>An ERP system is a platform that comprises solutions for managing business-wide processes.<\/p>\n<p>As such, it acts as the central source of truth across various functions, including customer-facing teams, HR, manufacturing, supply chain, procurement, etc.<\/p>\n<p>The ERP systems featured in the Gartner Magic Quadrant are cloud-based, and the analyst evaluates their ability to serve businesses that primarily offer services, not products.<\/p>\n<p>In doing so, these ERP systems offer various financial, human capital management (HCM), and administrative functionalities \u2013 alongside integrations, automation tools, and analytics.<\/p>\n<h2>Gartner Magic Quadrant Leaders<\/h2>\n<p>Leaders in the Magic Quadrant demonstrate a pioneering vision of how the cloud can support and improve service-centric ERP systems and processes. This year\u2019s leaders are:<\/p>\n<ul>\n<li>Oracle (Fusion Cloud ERP)<\/li>\n<li>Workday<\/li>\n<li>SAP (S\/4HANA Cloud)<\/li>\n<li>Microsoft (Dynamics 365)<\/li>\n<\/ul>\n<h3>Oracle (Fusion Cloud ERP)<\/h3>\n<p>Gartner commended Oracle for the maturity of its core functions for service-centric enterprises. Among others, these included cloud financial, people, project, and third-party resource management. &#8220;Big Red&#8221; also earned praise for its robust application and data integration capabilities alongside its embedded AI.<\/p>\n<h3>Workday<\/h3>\n<p>Workday wins plaudits for its \u201cunified data core\u201d that supports the AI features embedded into its platform. Gartner also praises the platform\u2019s affinity with the broader Workday stack, including its Human Capital Management (HCM), configure-price-quote (CPQ), and financial management system (FMS) solutions.<\/p>\n<h3>SAP (S\/4HANA Cloud)<\/h3>\n<p>Like Workday, SAP earns acclaim for how S\/4HANA Cloud fits into its broader portfolio. Additionally, Gartner lauds the global support network that SAP wraps around the platform alongside its embedded AI features. That now includes agentic AI, with <a href=\"https:\/\/www.cxtoday.com\/crm\/sap-microsoft-preview-the-integration-between-joule-and-copilot\/\" target=\"_blank\" rel=\"noopener\">the tech giant rapidly building out Joule<\/a>, its copilot turned AI Agent hub.<\/p>\n<h3>Microsoft (Dynamics 365)<\/h3>\n<p>Microsoft wins praise for how its Dynamics 365 platform has embedded GenAI with Copilot. Now, with <a href=\"https:\/\/www.cxtoday.com\/customer-data-platform\/what-is-microsoft-copilot-studio-and-how-can-i-create-a-custom-agent\/\" target=\"_blank\" rel=\"noopener\">Copilot Studio<\/a>, the ability for enterprises to build their AI agents for the ERP is massive, as it may allow them to recreate much of their on-premise customizations in the cloud. Gartner also credits Microsoft&#8217;s Azure and native FMS capabilities.<\/p>\n<h2>Gartner Magic Quadrant Challengers<\/h2>\n<p>Challengers in the Magic Quadrant have a more significant market presence than Niche Players and Visionaries. Yet, they lack the broader vision of leaders to drive industry innovation forward. This year&#8217;s challengers are:<\/p>\n<ul>\n<li>Oracle (NetSuite)<\/li>\n<\/ul>\n<h3>Oracle (NetSuite)<\/h3>\n<p>NetSuite is a prominent ERP platform with a presence spanning the globe. Gartner notes this as a core strength alongside the solution&#8217;s &#8220;360-degree dashboards&#8221; and integrations with the broader Oracle OCI ecosystem. Yet, one caution Gartner cites is its &#8220;planning and analysis&#8221; solutions that require considerable customization.<\/p>\n<h2>Gartner Magic Quadrant Visionaries<\/h2>\n<p>Visionaries in the Magic Quadrant understand how enterprises change as they move to a cloud ERP, as evident in their vision. However, they typically fall behind in their track record for execution. This year\u2019s visionaries are:<\/p>\n<ul>\n<li>There are no visionaries in the 2024 Magic Quadrant for Cloud ERP for Service-Centric Enterprises<\/li>\n<\/ul>\n<h2>Gartner Magic Quadrant Niche Players<\/h2>\n<p>Niche players in the Magic Quadrant may perform well in particular industries or across specific use cases. Yet, they trail in completeness of vision and ability to execute. This year\u2019s niche players are:<\/p>\n<ul>\n<li>Microsoft (Business Central)<\/li>\n<li>Sage<\/li>\n<li>SAP (Business ByDesign)<\/li>\n<li>Certina<\/li>\n<\/ul>\n<h3>Microsoft (Business Central)<\/h3>\n<p>According to Gartner, Microsoft Business Central has 40,000 customers. That reflects its market momentum. The analyst highlights this, the platform\u2019s \u201cAI-enabled Copilot\u201d, and \u201cMicrosoft stack integration\u201d as strengths. However, Gartner cautions that migrations to the ERP from alternative Microsoft solutions have proven tricky.<\/p>\n<h3>Sage<\/h3>\n<p>Sage Intacct excels in &#8220;financial management&#8221;, thanks partly to its new accounts payable process automation capabilities. Gartner notes this and isolates further strengths in its &#8220;support for project-driven organizations&#8221; and &#8220;improved industry focus&#8221;. Its &#8220;incomplete procurement and HR strategy&#8221; is cited as a caution.<\/p>\n<h3>SAP (Business ByDesign)<\/h3>\n<p>SAP Business ByDesign promises to connect all business functions with in-depth analytics. Gartner notes how these analytics exemplify its \u201cmodern platform\u201d, which it cites as a strength, alongside ByDesign\u2019s industry-specific innovation and \u201cservice provider ecosystem\u201d. Its \u201cslowing product roadmap\u201d is marked as a concern.<\/p>\n<h3>Certinia<\/h3>\n<p>Certinia primarily targets the midmarket. That may have hampered its performance in this enterprise report. Nevertheless, the vendor wins credit for its &#8220;customer-centric operations&#8221;, community, and intuitive features. Its cautions include a &#8220;partner dependency on HR capabilities&#8221; and limited environmental, social, and governance (ESG) tools.<\/p>\n<h2>A Final Takeaway from the Cloud ERP for Service-Centric Enterprises Magic Quadrant<\/h2>\n<p>Alongside vendor analysis, Gartner sometimes reports on industry trends and statistics within its Magic Quadrant reports.<\/p>\n<p>One fascinating statistic in the 2024 Magic Quadrant is that:<\/p>\n<blockquote><p>By 2027, at least 50% of the AI-powered features of ERP applications will be enabled through GenAI capabilities.<\/p><\/blockquote>\n<p>That exemplifies the huge impact the technology is having on the space \u2013 and the potential for agentic AI.<\/p>\n<p>One area where this will prove massive is in ERP data management. After all, poor ERP data can have significant consequences, not only on business performance but also from a legal and regulatory perspective.<\/p>\n<p>If AI agents can cover the enterprise stack and update the ERP with the latest data points, the tech could considerably enhance customer and employee experiences.<\/p>\n<p>For more Gartner Magic Quadrant coverage, check out the following articles:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.cxtoday.com\/customer-data-platform\/gartner-magic-quadrant-for-customer-data-platforms-2024\/\" target=\"_blank\" rel=\"noopener\">Gartner Magic Quadrant for Customer Data Platforms 2024<\/a><\/li>\n<li><a href=\"https:\/\/www.cxtoday.com\/crm\/gartner-magic-quadrant-for-crm-customer-engagement-center-cec-2024-the-rundown\/\" target=\"_blank\" rel=\"noopener\">Gartner Magic Quadrant for CRM Customer Engagement Center (CEC) 2024<\/a><\/li>\n<li><a href=\"https:\/\/www.cxtoday.com\/contact-center\/gartner-magic-quadrant-for-contact-center-as-a-service-ccaas-2024-the-rundown\/\" target=\"_blank\" rel=\"noopener\">Gartner Magic Quadrant for Contact Center as a Service (CCaaS) 2024<\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Cloud ERP for Service-Centric Enterprises 2024 Magic Quadrant is here, with Oracle (Fusion Cloud ERP) in the top-right corner for consecutive years. However, Oracle is not alone as a Magic Quadrant leader. It&#8217;s joined by Workday, SAP (S\/4HANA Cloud), and &#8211; in a change from the 2023 edition &#8211; Microsoft (Dynamics 365). That is [&hellip;]<\/p>\n","protected":false},"author":9051,"featured_media":66775,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[61014],"class_list":["post-66735","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crm","tag-artificial-intelligence","tag-erp","tag-generative-ai","tag-magic-quadrant","brands_to_track-certinia","brands_to_track-microsoft","brands_to_track-netsuite","brands_to_track-oracle","brands_to_track-oracle-netsuite","brands_to_track-sage","brands_to_track-sage-intacct","brands_to_track-sap","brands_to_track-workday","editorial_type-news","intent-evaluation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.3.1 (Yoast SEO v25.3.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Gartner Magic Quadrant for Cloud ERP for Service-Centric Enterprises 2024: The Rundown - CX Today<\/title>\n<meta name=\"description\" content=\"CX Today covers CRM &amp; 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