Worldwide software market grew 4.8 percent in 2013: Gartner


Bangalore: Worldwide software revenue totalled $407.3 billion in 2013, a 4.8% increase from 2012 revenue of $388.5 billion, according to Gartner, Inc. The developed geographies were the primary growth drivers offsetting the relative sluggishness in emerging markets.

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.

“There is a shift in vendor rankings from 2013 at the top of the worldwide software market,” said Chad Eschinger, VP – Research, Gartner. “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,” said Joanne Correia, VP – Research, Gartner. “A clear indicator of this is that for the first time we have a pure cloud vendor in the top 10.”

The top ten worldwide software vendors in 2013, in terms of their ranking, are: Microsoft, Oracle, IBM, SAP, Symantec, EMC, HP, VMware, CA Technologies and Microsoft has retained the No. 1 spot while Oracle moved into No. 2 spot replacing IBM, as compared to 2012.

“Investors continue to focus on revenue growth and market share gains as the primary criteria when evaluating vendors,” said John Rizzuto, VP – Research and Invest Analyst, Gartner. “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.”

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