Enterprise software grew 8.5 percent in 2010, boosted by demand for BI

The worldwide enterprise software market showed broad growth and recovery in 2010, with total software revenue increasing 8.5 percent annually to a worldwide market size of $US 245 billion, according to research firm, Gartner. In 2009, worldwide revenue declined 2.5 percent to $US 226 billion.

"In 2010, major software vendors expanded their product portfolios, acquired companies where appropriate to their plans, and reached deeper into emerging markets," said Gartner’s managing Vice President, Joanne Correia. "The year represented a return to solid footing as the market recovered and expanded in terms of revenue and geographies. However, some regions did not recover as rapidly as others. Japan and Western Europe saw relatively modest dollar-denominated growth, while Latin America and Asia/Pacific saw growth in the mid-to-high teens, nearly double the market average."

Enterprise software growth driven by vendor mergers and acquisitions

Gartner’s Vice President of Research, Tom Eid, attributed the rise in the enterprise software market to the shifting vendor landscape, expecting that trend to continue in 2011.

"Mergers and acquisitions are expected to continue as vendors and service providers look to expand their customer bases, add unique features aligned to a vertical-market or technology function, and improve overall market presence," said Eid.

Demand for Business Intelligence underpins growth of enterprise software market

The IDC reported that demand for Business Intelligence (BI) tools increased significantly during the first half of 2010, with software revenues reaching a combined $US 3.9 billion between January and June 2010. This represented a 13.9 per cent expansion on the previous six months, highlighting the greater interest in investment among companies.

Growth in enterprise software is expected to remain strong throughout 2011, boosted by the continued expansion of the BI market, with Gartner predicting BI software revenue to grow 9.7 percent, reaching US$10.8 billion in 2011.

Gartner said BI platforms would continue to be one of the fastest growing software markets, with more organizations turning to BI as a vital tool for smarter, more agile and efficient business decision-making.

BI ranked number five on the list of the top 10 technology priorities for Chief Information Officers (CIOs) in 2011, according to Gartner’s annual global CIO survey.

Strong results in Asia/Pacific enterprise software sales were also reflective of Australia’s BI software market, with Gartner estimating a 12.7 per cent year-on-year increase to $US 347.6 million, in 2011.

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