Huawei's ERP system gains traction with SOEs, rivaling Oracle and SAP

Huawei Technologies Co has made progress in commercializing its self-developed enterprise resource planning system, MetaERP, with multiple State-owned enterprises adopting the system to support daily operations. This move puts pressure on foreign companies such as SAP and Oracle in the Chinese market, sources familiar with the matter told China Daily.

ERP is key software that underpins a company's business operations, ranging from accounting to supply chain management. It is widely seen as the most critical enterprise management IT system.

"ERP serves as the cornerstone of enterprises' digital transformation, and the ERP market for State-owned enterprises is an undisputed high-end sector, which is historically dominated by foreign players like Oracle and SAP," one source said.

"Huawei's MetaERP has been adopted by multiple SOEs, proving that its competitiveness and real-world performance are on par with foreign counterparts," another source added.

Huawei's MetaERP is reportedly used by several SOEs in sectors like energy to support their units' day-to-day operations.

In April 2023, Huawei announced that it had replaced its legacy ERP system with its in-house MetaERP, after previously relying on Oracle's ERP software.

Ren Zhengfei, founder of Huawei, said in a speech in April 2023 that the company has full control over its ERP system, thanks to the support of its partners.

"We are still lagging behind in software today, but will we be strong one day? Maybe," Ren said.

The ERP market size in China is projected to exceed 45 billion yuan ($6.3 billion) by 2025, representing a year-on-year increase of 19.7 percent, according to the China Manufacturing ERP Market Research Report released by consulting company EqualOcean.

Xiang Ligang, director-general of the Zhongguancun Modern Information Consumer Application Industry Technology Alliance, a telecom industry association, said Huawei has about 200,000 employees across the world, and sprawling and sophisticated businesses. As the MetaERP system passed tests supporting Huawei's businesses, it can also support big State-owned enterprises' operations after tailor-made improvements.

Compared to foreign products, Huawei's ERP system is more secure and better suited for Chinese companies, Xiang said.