Monday, June 27, 2011

Worldwide Enterprise Software Revenue to Grow 9.5 Percent in 2011

Worldwide enterprise software revenue is on pace to surpass $267 billion in 2011, a 9.5 percent increase from 2010 revenue of $244 billion, according to Gartner, Inc. The enterprise software market is projected for continued growth in 2012, with revenue forecast to reach $288 billion.

Enterprise infrastructure software spending is on pace to a $153.3 billion total in 2011, a 9 percent increase from 2010 revenue of $140.6 billion. The market is led by the operating systems (OS) segment in which revenue is projected to reach $32.6 billion in 2011, followed by database management systems (DBMSs) revenue at $25.5 billion.

Worldwide enterprise application software spending is forecast to total $114.4 billion in 2011, a 10.2 percent increase from 2010 spending of $103.8 billion. Enterprise resource planning (ERP) is the largest segment within the enterprise application software market. ERP revenue is expected to reach $23.3 billion, followed by office suites with $15.7 billion.

Emerging countries such as Poland, India, China and Brazil, which were less affected by the latest economic downturn than the U.S. and Europe, are expected to continue to invest heavily in enterprise software initiatives in the next few years as they build the IT infrastructures necessary to do business on a global basis.

Enterprise software spending in North America is forecast to reach $121.2 billion in 2011, up from 2010 revenue of $112.9 billion. The market will experience consistent growth through 2015, when spending in North America will surpass $158.1 billion.

Gartner believes that oil prices and the outcome of the federal budget deliberations are the largest threats to economic stability in North America. However, current indicators are positive with consumer and business spending on both equipment and software holding up. With the extension of federal tax cuts —including the tax relief on capital equipment depreciation —due to expire at the end of the year, additional stimulus revenue could further boost enterprise spending on technology and other capital goods.

Enterprise software spending in Western Europe is forecast to reach $78.3 billion in 2011, up from 2010 revenue of $70.3 billion. The market will experience growth on a par with North America through 2015.

Asia/Pacific (excluding Japan) will have the second fastest growth, after Latin America, in enterprise software revenue of all the regions in 2011. Spending is forecast to reach $26.4 billion in 2011, up from 2010 revenue of $23.6 billion. The market will experience strong growth through 2015, when spending in Asia/Pacific will surpass $40 billion.

More information on enterprise software can be found at www.SupportIndustry.com.

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