Global software market grew 4.8% in 2013, Gartner says

Global software market grew 4.8% in 2013, Gartner says

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The worldwide software sales revenue totaled $407.3 billion in 2013, a 4.8 per cent increase from 2012 revenue of $388.5 billion, according to a US based information technology research and advisory company, Gartner.[blockquote cite=”Gartner”]The rankings of software producers according to revenue raked-in in 2013 from the first to the tenth position are Microsoft, Oracle, IBM, SAP, Symantec, EMC, HP, VMware, CA Technologies and Salesforce.com respectively.[/blockquote]

The developed geographies were the primary growth drivers offsetting the relative sluggishness in emerging markets according to Gartner, which said that the software industry is in the middle of a multiyear cyclical transition as organizations are focusing investment on technologies to support existing system structure, in order to maintain competitiveness, while still taking advantage of cloud/subscription-based pricing where it makes sense to grow and advance the business.

Chad Eschinger, research vice president at Gartner says “There is a shift in vendor rankings from 2013 at the top of the worldwide software market. This is the first time in Gartner’s global software market share research that Oracle has ranked second in terms of total software revenue with $29.6 billion and capturing 7.3 percent of the global market. Global trends around big data and analytics with business investment in database and cloud-based applications helped to drive Oracle’s top-line growth.”

“The software market has been changing shape over the past five years, and cloud is driving the bulk of this change as software vendors acquire and provide applications and infrastructure technology to support the cloud and the Internet of Things (IoT) movement. A clear indicator of this is that for the first time we have a pure cloud vendor in the top 10,” says Joanne Correia, research vice president at Gartner.

John Rizzuto, research vice president and Invest analyst at Gartner says “Investors continue to focus on revenue growth and market share gains as the primary criteria when evaluating vendors. At this point, the new and emerging technology markets in software, such as digital marketing and public cloud computing, are so nascent that investors are favoring those companies that are early and aggressive in grabbing both market and mind share — in many cases dismissing progress on earnings and cash flow in hopes that they will one day follow.”

The rankings of software producers according to revenue raked-in in 2013 from the first to the tenth position are Microsoft, Oracle, IBM, SAP, Symantec, EMC, HP, VMware, CA Technologies and Salesforce.com respectively.

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Kayode Oladeinde Technology Journalist at Technology Times. Mobile: +234 (0) 7031526929

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