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Enterprise application software 'on the rise'
IT News |
25/06/2012
Global spending on enterprise application software will continue to rise during 2012, it has been predicted.
In its latest industry forecast, IT analyst Gartner predicted that the market will expand to $120.4 billion (£77.32 billion) in 2012, up by 4.5 per cent on last year.
However, this represents a downwards revision on the firm's previous forecast, with Gartner having predicted a growth rate of five per cent during Q1 2012.
"The global marketplace is still experiencing a series of conflicting and contrasting economic news reports," said Tom Eid, research vice-president at Gartner.
"As such, the full impact of the economic uncertainty on the enterprise software markets may not be readily assessable until the end of the first half of 2012."
He noted that spending is anticipated to focus on industry-specific applications, upgrades to established, mission-critical software, integrating and securing established systems and infrastructure, and Software-as-a-Service (SaaS).
Mr Eid added that the key enterprise application software market segments in 2012 include business intelligence, content, communications and collaboration, customer relationship management, enterprise resource planning and supply chain management.
He explained that an increasing number of organisations are demanding software functionality as-a-service or via cloud-based services rather than on-premises.
As a result, vendors are offering more technology as subscription-based solutions and 'pay-as-you-go' offerings, the expert stated.
"After more than a decade of SaaS and cloud service use, adoption continues to grow and evolve within the enterprise application markets," Mr Eid said.
"This is occurring as tighter capital budgets demand leaner alternatives, popularity and familiarity with the model increase, and interest in SaaS and cloud computing grows."
He claimed that adoption varies between and within markets, with the most widespread use still characterised by horizontal applications with common processes, among distributed virtual workforce teams and within Web 2.0 initiatives.
Posted by Stephen Wilkinson
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