Investment Rating - The report provides a positive outlook for the global software industry, particularly in the ERP sector, with a growth forecast of 5.7% for ERP spending in 2025, consistent with 2024's rate [2][21]. Core Insights - AI is recognized as a significant driver for ERP modernization and consolidation, with 53% of respondents indicating that AI-related initiatives have accelerated their core financials upgrade timelines [2][55]. - The survey indicates a strong intention among organizations to upgrade their core financial systems, with 72% planning an upgrade within the next two years, despite a slight decrease from 76% in 2023 [2][49]. - The average age of core financial systems is decreasing, currently reported at 3.45 years, down from 3.94 years in the previous year, indicating ongoing modernization efforts [48][50]. Summary by Sections IT Budget Growth - The mean expectation for IT budget growth in 2025 is 5.4%, an increase from 4.8% in 2024, with ERP software and cloud growth slightly higher at 5.7% [7][22]. - China shows the strongest growth outlook at 7.1%, while Germany has the lowest at 3.6% [24]. AI Adoption and Impact - 56% of respondents reported that their core financials provider offers AI capabilities, with 66% of this group currently using these functionalities [3][59]. - The average cost increase per user due to AI adoption is reported at 14% for both core financials and HCM [3][66]. Vendor Landscape - Microsoft remains the most widely used vendor for core financials at 32%, followed by SAP at 25% and Oracle at 12% [12][35]. - The Net Promoter Score (NPS) for Microsoft is the highest among major vendors at 42, while SAP's NPS has declined to 15 [39][40]. Upgrade Plans - 26% of organizations plan to upgrade their core financial systems this year, with an additional 43% planning upgrades in 2026 [49][50]. - The report highlights that 61% of respondents believe their AI strategy has accelerated their ERP upgrade timelines, up from 51% in the previous survey [55][56]. Pricing Trends - 85% of respondents have experienced or been informed of planned price increases, averaging 6.2%, with the highest expected increase in China at 7.6% [19][70]. - Microsoft customers anticipate the highest price increase at 6.3%, while SAP customers expect the lowest at 5.6% [19][70].