Exploring the Criteria Used in Gartner’s Magic Quadrant for Cloud ERP Evaluation

The Gartner Magic Quadrant is a widely recognized and respected evaluation framework used by businesses to assess technology vendors and their solutions. One such evaluation that holds significant importance in the realm of enterprise resource planning (ERP) is the Gartner Magic Quadrant for Cloud ERP. In this article, we will delve into the criteria used by Gartner to evaluate cloud ERP vendors and understand how it impacts businesses looking for a suitable solution.

Completeness of Vision

Gartner evaluates vendors based on their completeness of vision, which encompasses several key aspects. Firstly, vendors are assessed on their ability to understand market trends and customer needs while aligning their roadmap accordingly. This includes the vendor’s strategy, innovation, and differentiation in the market.

Secondly, Gartner looks at the vendor’s marketing strategy and execution. This involves analyzing how well vendors communicate their value proposition, target specific industries or segments, and position themselves as leaders in the cloud ERP space.

Lastly, the analysts evaluate a vendor’s offering strategy. This involves assessing factors such as product functionality, scalability, flexibility, integration capabilities with other systems or platforms (e.g., CRM), and support for multi-cloud or hybrid deployments.

Ability to Execute

In addition to assessing a vendor’s vision, Gartner also evaluates its ability to execute effectively in delivering cloud ERP solutions. This criterion focuses on several important areas that determine a vendor’s ability to meet customer expectations.

Firstly, Gartner examines a vendor’s product or service offering by evaluating its core capabilities and features. This includes assessing factors like ease of use, performance reliability, security measures implemented within the solution, and overall user experience.

Secondly, analysts assess a vendor’s sales execution/pricing model by evaluating its pricing structure (e.g., subscription-based pricing), sales approach (direct sales or channel partners), and the vendor’s ability to meet customer needs through effective sales processes.

Lastly, Gartner evaluates a vendor’s market responsiveness and track record. This involves analyzing factors such as customer support, product updates and enhancements, and the vendor’s ability to address emerging market requirements or changes effectively.

Market Understanding

Gartner also considers a vendor’s understanding of the ERP market when evaluating cloud ERP solutions. This criterion assesses how well a vendor comprehends market dynamics, including industry trends, customer demands, and competitive landscapes.

Analysts evaluate a vendor’s understanding of various industries or verticals by assessing its industry-specific functionality and capabilities. This includes evaluating how well the cloud ERP solution caters to specific business requirements within sectors like manufacturing, healthcare, retail, or finance.

Additionally, Gartner examines a vendor’s strategy for addressing global markets. This involves assessing factors like localization support (multi-language/currency), internationalization capabilities, and the vendor’s partnerships or alliances with regional service providers.


The fourth criterion evaluated by Gartner is innovation. In today’s rapidly evolving technology landscape, businesses need cloud ERP solutions that can keep pace with emerging trends and disruptions.

Gartner assesses a vendor’s innovation by evaluating its approach to research and development (R&D). Analysts look at factors like investment in R&D resources, technology partnerships or collaborations for innovation purposes, as well as the use of cutting-edge technologies (e.g., artificial intelligence or machine learning) within their solution.

Furthermore, analysts evaluate a vendor’s track record in delivering innovative features or functionalities that provide customers with a competitive advantage in their respective industries. This includes assessing whether vendors have successfully introduced new capabilities that address emerging market needs or challenges faced by businesses today.

In conclusion, understanding the criteria used by Gartner in their Magic Quadrant for Cloud ERP evaluation is crucial for businesses seeking an appropriate cloud ERP solution. By considering completeness of vision, ability to execute, market understanding, and innovation, organizations can make informed decisions when choosing a vendor that aligns with their specific requirements and business goals.

This text was generated using a large language model, and select text has been reviewed and moderated for purposes such as readability.