AI Is the Cloud of Tomorrow - 3 Key Takeaways from Gartner’s 2025 WMS Magic Quadrant

A few weeks ago, Gartner released the 2025 Magic Quadrant for Warehouse Management Systems (WMS). The report mostly focuses on enterprise giants in the field, however there are important takeaways that can be vital to SMEs as well:

1. Composable WMS Is on the Rise

A WMS that tries to be the one-size-fits-all platform is giving way to more modular, API-friendly systems. This means that vendors are designing their solutions with modular architecture so that businesses are able to quickly implement only the parts they currently need.

Some vendors are even offering standalone orchestration layers – this indicates that flexibility is becoming a must-have, not a luxury.

2. Cloud Is the Industry Standard - AI Is the Differentiator

Over 80% of new buyers prefer cloud-based WMS for deployments, according to Gartner’s Report. This means that being cloud-based, or cloud-enabled no longer sets the vendor apart from others – it is expected.

The differentiator is AI. Predictive analysis, generative interfaces, process automation – these are the new features that everyone is looking forward to.

All of this does not mean that Cloud is no longer important, on the contrary, it is even more important now because it provides the infrastructure that makes these innovations possible.

3. The Mid-Market Still Isn’t a Priority

If you are a small or medium-sized company that wants to automate and digitalize processes in the warehouse to keep up with the competition, chances are that you are struggling to find a suitable modern WMS system, that hits that sweet spot between capability and affordability. The report mentions this reality – market leaders are mostly focused on large enterprise deployments with complex requirements and long lead times.

The news isn’t all bad though. Some vendors are starting to offer simpler pricing, modular options, and faster go-lives – but the gap remains wide.

Bottom Line: AI Isn’t Optional Anymore

The main takeaway is simple – AI is now what cloud was a few years ago. And just as cloud disrupted the legacy software landscape, AI is set to do the same with warehouse performance, decision-making and adaptability.

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