Updated August 5, 2008

According to data of the analytical company IDC, in 2007 the volume of Russia's market

of integrated system for an enterprise management (Enterprise Resource Planning; ERP) grew by 58,7% to $579 million. This index is almost as twice higher as the average growth rate of Russia' s IT market.

According to IDC analyst Petr Gorodetsky, the target users have fully assessed EPR import

ance as the key instrument to optimize business processes and increase an enterprise competitiveness.

"Both vendors and their partners could offer their customers an optimum option, including solutions for separate business segments and industries", as the expert explains.

Obviously, enterprises feel the need of not only instruments purchase for getting in

formation, they are interested in financial reporting that correspond to the Russian legislation requirements.

That is why the market stake of budgetary and constantly updated 1C products, by the Russian Accounting Standards (RAS) and the Tax Code, increases steadily.

Thus, if in 2005-2006 growth of 1C presence at the market continued due to Microsoft stake reduction, in 2007 Oracle Corporation was the "victim". Its representative explains this fact by the relatively low number of target clients for "heavy" ERP systems. It is quite obvious that many Russian enterprises, including large industrial ones, have to use products of lighter class in term of funds shortage.

Among "heavyweights" are still enterprises with a continuous production cycle that specialize in raw material processing, including oil, as well as retailers and energy companies.

As 1C introduction does not imply high corporate investments, the companies of small and mid business proceeded with automation.

And it is a really gold mine.

In the opinion of deputy director of IBS corporate management system department Aleksander Saksin, SAP's succes is explained by the attention of the corporation to the small and mid business segment foremost.

As per IDC data, at Russia's small and mid business market SAP gained more than 30% of its earnings. Obviously, Oracle policy is not as active here.

IDC specialists consider that in the nearest five years the Russian ERP systems market will grow at an average of 35% per year. Expenditures on automated systems in retail and wholesale trade, energy, health care, education and government bodies will grow outstripping the market dynamics.

Stakes of core ERP system vendors at the Russian market