Gartner report has a report with the same title, Below are some excerpts from the same:

The next three years will be lean for vendors selling integrated software applications, especially those supporting core ERP functionality, as low-single-digit growth continues.

Economic conditions and vendor consolidations are reshaping the core enterprise resource planning application midmarket. The technology transformation to service-oriented architectures will be the most-significant factor redefining this space.

Consolidation among midmarket vendors will continue; therefore, users selecting midmarket enterprise resource planning products should ensure long-term support or, at the very least, ensure access to source code in contract negotiations. Be wary of vendors that don't have plans to make required technology changes to their software to deliver deeper vertical application functionality for such domains as discrete and process manufacturing.

The technology transformation to a service-oriented architecture (SOA) will have the largest effect on redefining the ERP midmarket since the term "ERP" was coined. This technological improvement will require large R&D investments to totally re-engineer a great deal of code - an effort that will not provide vendors with an immediate return on investment (ROI) and will put additional pressure on their survival. The midmarket providers are likely to narrow their focus to provide services for specific manufacturing types that fit the vendor's current products, creating a "tiering" effect in the overall ERP space. This will be similar to the automotive manufacturing market, in which large vendors command networks of suppliers.

Source: 1

Prashanth Rai