This article focuses on the implementation of the enterprise resource planning (ERP) by European midsize companies as of April 2000. Recently the major ERP groups like SAP, Oracle Peoplesoft were mainly targeting big companies, but this market comes close to saturation. Many large companies have already adopted ERP systems. Number of midsize companies in Europe is estimated to exceed 100,000. It is estimated that European midsize market for IT products and services surpasses a staggering $50 billion per year. The total European ERP mid-market can be roughly estimated to exceed $5 billion per year for 1999 and 2000. In the year 2000 a majority of all European midsize companies will embrace ERP. Electronics is expected to become the leader in ERP implementations, with an adoption percentage of nearly 70%. When companies consider buying a new product, the perceived characteristics of the product play an important role in the final decision to start using that new product. Thus the characteristics of the ERP software have to match the criteria used by companies to select an information system. The importance of criteria is very similar across all industries, but some differences between countries were found. In addition to criteria to select a new system, other criteria may be used to select the supplier of a new information system. Based on indications concerning preferred suppliers for ERP, it can be expected that the combined share of big five vendors will sharply increase over 60%. INSET: How the Survey was Conducted.