Use of on-demand Enterprise Resource Planning (ERP) applications grew 63 per cent in 2006, according to market analyst IDC.

Overall, Europe's €6.4bn (£4.7bn) ERP sector underwent a revival, with license and maintenance revenue up seven per cent.

"On-demand ERP applications will gain importance over the next five years," said IDC programme manager Bo Lykkegaard.

"While customers might not ask for ERP on-demand today, the changes caused by new delivery models and technologies will transform the ERP market as we know it."

SAP, Oracle, Sage, Microsoft, and Infor were the top five supplier in Western Europe, with a combined market share of 69 per cent.