Analyst house Gartner, Inc. has officially released its 2018 Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large and Global Enterprises. The report highlights 12 providers of core financial management suites that are marketed and sold on a stand-alone basis and delivered as cloud services. Gartner adds, “It does not cover vendors that sell only a broader ERP suite that includes core financial management applications — or, to put it the other way round, vendors whose core financial management applications are always sold with operational ERP capabilities.”
Gartner’s previous Magic Quadrant for Cloud Core Financial Management Suites was the first of its kind. As such, the market is still evolving so the definition is broad, covering midsize, large and global organizations across all geographies. Gartner defines core financial management suites as:
The functional areas of general ledger (GL), accounts payable (AP), accounts receivable (AR), fixed assets (FA), project accounting, project costing and project billing.
Financial analytics and reporting capabilities, including provision of financial information and of key performance indicators to managers and executives.
Basic indirect purchasing functionality (from creating a requisition through to purchase order processing, and AP invoice matching and payment).
According to Gartner, the market for cloud suites will continue to evolve over the next five years and by 2023, 50% of all new midsize core financial management application projects and 25% of large and global ones will be public cloud implementations.
Since 2017’s Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large and Global Enterprises, Gartner has seen a major increase in the number of end-user inquiries about cloud solutions, mainly of the public cloud variety. At the same time, the number of inquiries about on-premises and hosted solutions has fallen dramatically.
In this Magic Quadrant, Gartner evaluates the strengths and weaknesses of 12 providers that it considers most significant in the marketplace, and provides readers with a graph (the Magic Quadrant) plotting the vendors based on their ability to execute and their completeness of vision. The graph is divided into four quadrants: niche players, challengers, visionaries, and leaders. At Solutions Review, we read the report, available here, and pulled out the key takeaways.
SAP (for S/4HANA Cloud) and Unit4 (for Business World) are the newcomers in this year’s report, while Deltek was removed for no longer meeting the inclusion criteria, specifically regarding its Deltek Vision product. Deltek is currently undertaking a transition to a new product, which did not fulfill the inclusion criteria for this Magic Quadrant.
For the second-straight year, Oracle ERP Cloud and Workday are the top players in the space with Oracle (NetSuite) just barely making it into the Leaders quadrant. Compared to last year’s report however, Oracle (NetSuite) saw positive progression from a Challenger in 2017.
Sage Intacct, Microsoft and Acumatica stayed where they were in 2017 in the Visionaries quadrant, and Financial Force distanced itself a bit from the pack with the move from Visionaries last year to Niche Players in 2018. SAP (S/4HANA Cloud) and Unit4 are new additions to the Visionaries quadrant in this year’s report due to their go-to-market capabilities and partnership development.
Epicor Software, SAP and Ramco Systems maintained their positions as Niche Players, as they are are more focused on core financial management applications as part of a broader ERP suite.
That’s it for this year’s inclusions. However, Gartner chose to add an honorable mentions header at the bottom of this report, and included an additional listing of providers based on their specialty offerings. We encourage you to read the Magic Quadrant in full.
Looking for more? Download our ERP buyers guide for free and compare the top-24 products available on the market with full page vendor profiles. The guide includes four key capabilities to look for in an ERP solution, plus five questions to ask yourself and five questions to ask the software provider before purchasing. It’s the perfect resource for anyone looking for the right ERP for their business/organization.
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