Big data, analytics to drive software spend growth into 2017

IDC predicts 8.2% growth in software market over 2012-2017 period

Tags: International Data Corporation
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Big data, analytics to drive software spend growth into 2017 In constant US dollars, the expected growth rate for 2013 remains very close to the forecast of 5.9%.
By  ITP.net Staff Writer Published  November 24, 2013

Collaborative applications along with structured data management software and data access, analysis and delivery solutions are expected to show the strongest growth over the 2012-2017 forecast period with over 8% CAGR, according to International Data Corporation's (IDC) Worldwide Semiannual Software Tracker.

"Leveraging the social dimensions of the Internet keeps fuelling the collaboration growth, much of which is in the form of software as a service," said Henry Morris, senior vice president, Worldwide Software, Services, and Executive Advisory Research, IDC.

"This is complementary to the increased attention to big data and analytics solutions, which help enterprises to understand, and act on, anticipated customer behavior, and provide new insights into product reliability and maintenance."

The new Tracker report shows year-on-year growth in the worldwide software market for 2013 has been revised to 4.3% in current US dollars. The forecast was lowered from the 5.7% year-on-year growth projected in May because of depreciation in the Japanese yen announced during the second quarter. In constant US dollars, the expected growth rate for 2013 remains very close to the forecast of 5.9%. Despite the fluctuation in currency exchange rates, IDC believes that the compound annual growth rate (CAGR) for the 2012-2017 forecast period will remain close to 6%.

Enterprise applications such as CRM, ERM, SCM, and operations and manufacturing applications show CAGR rates around 6%.

"Enterprises are starting to implement applications that either didn't exist or weren't needed in the past, such as commerce applications in all industries, not just retail, but also manufacturing, hospitality, food and beverage, and even the public sector," said Christine Dover, research director, Enterprise Applications and Digital Commerce.

"IDC is also seeing applications in categories that didn't exist in the past - for example, subscription billing, spend optimisation, and revenue management - for requirements that may have been met using custom applications or manual processes."

On a regional basis, emerging economies continue to experience stronger growth than mature economies. The average 2012-2017 CAGR for Asia/Pacific (excluding Japan); Latin America; and Central Europe, Middle East, and Africa (CEMA) is 8.2% while the average CAGR for mature regions - North America, Western Europe, and Japan - is 5.4%.

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