Global software market stabilises

Gartner says the global software market is stabilising. However, before salesmen everywhere rush out to buy a new set of wheels, it is worth noting that the analyst house also recommends caution for the coming 12 months.

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By  Matthew Southwell Published  April 7, 2003

Although the clouds of economic depression and political uncertainty continue to cast a shadow over the world’s IT markets, Gartner Dataquest has finally delivered a little ray of light.

According to the analyst house, the worldwide software will return to positive, stabilised growth in 2003 as global end user spending reaches US $76.1 billion — a mighty 3.5% increase from 2002.

However, before software sales execs everywhere rush out and buy that new car they’ve been eying up for the past 12 months, it is worth pointing out that Gartner has liberally garnished its figures with caution.

"Uncertainty is riding high with a very restrained economic outlook, so it can only be sensible to advise continued caution for the near future," says Thomas Topolinski, vice president for Gartner Dataquest's Software Industry Research group.

"While some sectors are seeing increased demand, other sectors are losing their share. The most prudent planning assumption is that, at least for the next 12 months, overall global demand for software licenses will remain as static as it is today," he adds.

In fact, the only sales people able to buy a new set of wheels in the near future will be those that work for the tier one vendors, as Gartner suggests that these software giants will continue to take market share from the pure-play vendors.

”Pure-play vendors derive most of their software revenue from the sale of products within one market. The realities of the weak economy continue to shift the competitive advantage from pure-plays to titans,” says Gartner.

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