Software market defies cloud pressure in 2010

Latest Gartner figures reveal a healthy demand for enterprise software, with 8.5 per cent growth

Despite the rise of the cloud, demand for enterprise software in 2010 caused the market to grow 8.5 per cent, according to the latest Gartner figures.

The total global enterprise software market reached $245bn (£148bn) in 2010, compared with a 2.5 per cent drop to $226bn in 2009.

Topping the table was Microsoft, with 22.4 per cent market share, with IBM occupying second place with 10.4 per cent market share. Oracle was third with 9.8 per cent, followed by SAP and Symantec with 5.3 per cent and 2.3 per cent respectively.

Joanne Correia, managing vice president at Gartner, said: “In 2010, major software vendors expanded their product portfolios, acquired companies where appropriate to their plans and reached deeper into emerging markets.

“This year represented a return to solid footing as the market recovered and expanded in terms of revenue and geographies,” she added. “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.”

Other vendors appearing in the top 25 include VMware, which saw 41 per cent growth in 2010, Adobe with 29 per cent growth and Salesforce.com with 28 per cent growth.

Tom Eid, research vice president at Gartner, said: “The enterprise software vendor landscape continues to change. 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.”