Cloud ERP Trends 2025 According to Industry Giants

In 2025, the enterprise resource planning (ERP) landscape is set for an exciting transformation. Let’s dive into the exciting predictions from industry giants like Forrester, Gartner, IDC, Deloitte and PwC. Together, they paint a picture of a future where technology and strategy merge seamlessly, creating opportunities for businesses to thrive in an ever-evolving marketplace.

Grab your virtual crystal ball as we explore the trends that will shape Cloud ERP in 2025.

#1: The rise of agentic AI

One of the most prominent trends is the integration of Artificial Intelligence (AI) and automation within ERP systems. Deloitte highlights the need for organizations to invest in AI and automation technologies to streamline operations and increase productivity within their ERP systems. Their prediction suggests so 25% of enterprises using generative AI will deploy AI agents by 2025, with this figure expected to grow to 50% by 2027.

There’s a new word we seem to be hearing a lot this year: Agent AI. These AI agents are designed to perform complex tasks with minimal human intervention, reflecting a shift toward more autonomous systems in business operations. As companies recognize the potential benefits of AI in increasing productivity, greater changes are expected from the experimental stages to the practical implementation of AI.

PwC predicts that this will lead to an inclusive workforce both human workers and AI agentseffectively doubles the capacity of knowledge work and increases productivity, which will require new management approaches to integrate collaborative human-AI teams.

#2: Shifting to cloud native solutions

like hybrid adoption spreads, we see a clear movement towards native cloud solutions. This transition is essential as businesses adapt to changing market demands and operational challenges. Gartner predicts that end-user spending on public cloud services will reach $723 billion by 2025showing a significant migration of ERP systems to cloud platforms.

However, misunderstandings and concerns about public cloud security are not new. This reality highlights a pivotal moment in how organizations approach data management, especially in light of growing regulatory requirements and public concerns about data privacy. In this context, Forrester points out that organizations should also consider investing in private clouds due to growing concerns about data sovereignty and security.

Gartner projects worldwide IT spending to reach $5.75 trillion in 2025, up 9.3% from last year.

#3: Using AI-powered decision support tools

Incorporating AI into ERP systems is essential for improving data-driven decision making. Gartner predicts this by 2028, at least 15% of daily work decisions will be made autonomously using Agent AIa marked increase from zero percent in 2024.

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Forrester emphasizes the possibility of decision-making and adds the importance offostering a culture that prioritizes data-driven decision-makingusing advanced analytics within ERP systems to improve business results. Similarly, Deloitte emphasizes the importance of using cloud-based ERP solutions for real-time insights that can lead to better financial management and strategic planning.

IDC adds thisby the end of 2025, 35% of organizations will use AI-driven digital workers and invest in training programs to increase employee skills and collaboration.

#4 Prioritize Advanced Cyber ​​Security Protocols

Technology evolves and so do threats. Cybercrime is expected to cost organizations$12 trillion in 2025driving a greater emphasis on proactive security measures.

As organizations increasingly migrate data to the cloud and AI integration becomes the norm, robust cybersecurity measures become key to minimizing or eliminating damage. Gartner highlights the need for organizations to prioritize data security and compliance as they move more data to cloud environments.

Integrating AI into public cloud strategies is becoming increasingly important, fueling discussions about private cloud solutions. Forrester predicts thisby 2025, most large public cloud providers will significantly increase their investments in private cloud offerings.

#5: Embrace ESG reporting and carbon footprint tracking

In The Future of ERP podcast, SAP’s Head of Sustainability and Commerce, Sophia Mendelsohn emphasized the need to treat carbon emissions as money, saying: “If we want to treat carbon as money, we have to count it the same way that we make the money. We have to put it in the same place where we put the money, where the business decisions are made”.

As regulatory expectations increase and stakeholders demand greater transparency, companies are expected to allocate more resources towards Environmental, Social and Governance (ESG) initiatives. This trend reflects not only a response to compliance requirements, but also a bold statement of corporate responsibility, indicating that sustainable practices are becoming an integral part of business strategies.

In 2025, carbon emissions from high-scale cloud services will be one of the top three factors influencing cloud purchase decisionspredicts Gartner.

As organizations increasingly prioritize sustainability, large-scale cloud providers are under pressure to increase their sustainability initiatives and transparently report their carbon emissions. Companies are expected to advocate cost- and carbon-aware design patterns that optimize cloud workloads while minimizing environmental impact.

#6: Elevating the modular system over the monolithic system

The shift from monolithic to modular ERP systems is gaining traction. IDC predicts that by 2027, it is predicted that75% of global businesses will begin to replace traditional monolithic ERP systems with modular solutions – driven by the need for increased flexibility and scalability in business operations.

Deloitte supports this change, advocating standardized systems that simplify operations and improve integration across business functions. Modular systems allow organizations to tailor functionalities to their specific needs, making them more agile and responsive to market demands.

#7: Navigating the complex world of regulatory compliance

As regulatory environments become more complex, ERP systems must evolve to keep pace. Deloitte finds out92% of organizations are preparing to improve their regulatory compliance capabilities within the next three years – an impressive commitment that speaks volumes for the importance of staying ahead in this landscape.

Future ERP systems will come equipped with built-in compliance features that automatically update to reflect changes in regulations, easing the burden on businesses to manually track and implement these updates. Enhanced compliance capabilities also include advanced reporting and auditing tools that ensure transparency and accountability. By proactively addressing regulatory changes, businesses can maintain their reputation and emerge as leaders in their respective fields.

If you want to explore more insights from SAP and industry experts, join us at Released virtual event of SAP Business on February 13.