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28 Percent Of Legacy On-Premises EPM Users Plan To Switch To New Solution In 2016, Study Finds
Frustration with Outdated Legacy Systems Drives Finance Professionals to Explore Alternatives
Host Analytics, the leader in cloud-based enterprise performance management (EPM), along with Radius Global Market Research, a leader in independent market research, today announced findings from an annual survey that captures the satisfaction levels of current users of financial solutions. Last year, a similar survey discovered that 20-30 percent of companies using legacy on-premises EPM solutions intended to make a switch to a new solution. That trend continued for a second consecutive year, as 28 percent of respondents said they plan to switch within the next 12 months. The research was commissioned by Host Analytics. Additional highlights from the survey include:
- 65 percent of those currently using legacy on-premises EPM solutions plan to migrate away from the solution at some point.
- Legacy on-premises EPM solutions were below the category average on satisfaction and Net Promoter, and well below the cloud alternatives.
- The legacy on-premises EPM solutions scored below the category average for value, ease of use, and customer service.
The research was completed by over 450 executives in the accounting and finance field, randomly recruited by Radius Research from a large pool representative of the market. 60 percent of the executives surveyed for the study are the final decision maker of finance tools for their organizations and the remainder all have some level of influence. Participants came from a wide range of industries including services, manufacturing, retail, technology, healthcare, non-profit, and education with 40 percent of the respondents working at companies of $1 billion or more of revenue.
Forrester on EPM Movement to the Cloud
Recent research by analyst firm Forrester highlights the growing trend among financial leaders toward the use of cloud-based EPM solutions. In that report, entitled "The EPM Market Landscape Responds To The Growth Agenda And Digital Disruption," analyst Paul D. Hamerman wrote:
"As SaaS broadly gains momentum in many business application areas, the appetite for EPM delivered as SaaS is increasing rapidly. While SaaS alone is a major disruptive force that is driving EPM replacements and net new adoption, several other significant technologies enrich EPM platforms and drive product innovation in this software category."
“As we see in the other technology market research studies that we conduct, companies continue to migrate away from on-premises, legacy software to cloud-based solutions such as that offered by Host Analytics,” said Michael Patterson, senior vice president at Radius Research. “We have every reason to believe that this trend will continue in the EPM category as more companies become aware of the benefits offered by cloud-based solutions like Host Analytics Cloud EPM Suite.”
"The research by Radius Research highlights why the move to cloud-based EPM by finance is inevitable," said Andre Lafayette, senior director, strategic marketing for Host Analytics. "Outdated on-premises software cannot deliver on the core EPM requirements with the speed and agility of cloud EPM applications. The legacy EPM vendors have responded to this trend by hosting the same legacy software products in the cloud. However, this approach also falls short and fails to meet the needs of today’s fast-growing organizations. ”
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About Radius Global Market Research
Radius Global Market Research is one of the largest independent market research companies in the world. We are single-minded in our focus: to grow our client’s brand by strategically optimizing their offerings, identifying differentiating innovations in the marketplace, and delivering a compelling customer proposition that drives business performance.
Our prestigious client list reflects the fact that Radius is the go-to company for answers meant to meaningfully affect results. We strive to maintain best practices across all our research engagements. The real core of Radius is the intellectual capital of our people who take every project from inception through to deliverables, looking at each stage to optimize the client experience and the power of our research’s impact.
The Radius team approach is built around our clients’ unique needs. It’s an end-to-end process that begins in the issues phase in concert with our clients so that marketing needs are well translated into research methods; and research methods are well translated into business impact. It yields a powerful linkage between issue and solution, much because of the level of involvement from the Radius team.
About Host Analytics
Host Analytics is the leader in cloud-based enterprise performance management (EPM), offering a suite of financial applications for modeling, planning, consolidation, reporting and analytics. World-class companies like NEC, Burlington Coat Factory and Sanmina trust Host Analytics to power their strategic financial systems. Host Analytics is a fast-growing, private company backed by leading venture capitalists and is headquartered in Silicon Valley with customers in over 90 countries.
For more information about Host Analytics, please visit www.hostanalytics.com
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