What is the useful life of ERP software?

Around the turn of the millennium, ERP systems were introduced in many companies. At a stage many companies took the opportunity to replace their old systems with enterprise resource planning. Since the average use has so far been around fifteen years, many companies are currently looking for a modern alternative.

ERP change cycles indicate how long companies will stick with their ERP system consultant  before migrating to new solutions. This does not mean release changes, but changes to a completely new system. The  ERP change cycles are tending to become shorter and shorter .

It doesn’t matter whether companies have been used to mapping their business processes with the same ERP system for ten to fifteen years – on average, a changeover to a new ERP software takes place at a much shorter time compared to the last change.

A major reason for the increasing flexibility, i.e. the shorter years of commitment to the previous ERP system, is to be found in a paradigm shift. Because more and more companies are opting for cloud ERP solutions. In contrast to on-premise solutions, which first have to be laboriously installed, cloud ERP software is immediately ready for use.

There are other factors that contribute to shortening ERP change cycles:

• easier data transfer
• shorter training times
• falling costs

Providers of cloud ERP solutions also create additional incentives to switch with attractive price models.

Large companies and international corporations in particular have experienced that an ERP system can be the backbone of the entire company. But what is now an indispensable standard for large companies and larger medium-sized companies is still a question mark for many companies in the SME sector.