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MENA enterprise software market recovering says IDC

EAS market recovered from economic slump, some local effects of Arab Spring

MENA enterprise software market recovering says IDC
The Enterprise Application Software market in the MENA region is largely healthy in the short term, says IDC.

The enterprise application software market (EAS) in Arab Middle East and North Africa region suffered some upheaval due to the Arab Spring, according to IDC, but has generally rebounded from the effects of the 2008-2009 economic crisis.

The market has been driven by major economic stimulus packages announced during the first half of 2011, with the rise in public services, housing projects, and the availability of credit in subsequent quarters, to continue to drive IT and EAS investments in the short term. Ongoing and greenfield infrastructure projects are also expected to contribute to increased spending on EAS solutions

IDC reports that the EAS market grew consistently across all geographies in the Arab MENA in 2010, with licence and maintenance (L&M) spending reaching $459.92 in 2010, a growth of 7.5% year-on-year. Spending was mainly focused on manufacturing companies, which accounted for 19.2% of the market, government sector which took up 14.1% share and finance which accounted for 11.8%.

By geography, Saudi was the largest market, followed by the UAE, the rest of the GCC, then Algeria, Morocco and Tunisia, followed by Egypt. The Levant was the smallest EAS market in the MENA region in 2010.

The GCC countries excluding Saudi and the UAE, were the fastest growing, followed by Egypt and Saudi Arabia.

The market was dominated by three vendors, SAP, Oracle and Microsoft Dynamics. SAP reported L&M revenues of $170.51 million, followed by Oracle with $156.39 million and  Microsoft Dynamics in third with $39.6 million.

"Spending on EAS solutions in the Middle East and North Africa, or MENA, region has recovered after the global economic crisis, with pent-up demand for up-to-date EAS solutions driving growth. That said, recent political turmoil in several states in the region will affect projects and delay some anticipated EAS spending for 2011 and 2012," said research manager Dhiraj Daryani, IDC Middle East, Africa, and Turkey.

"As IT budgets are squeezed, CIOs are being asked to do more with less, and customers are demanding that vendors bring in world-class implementation expertise for EAS projects. The current growth in analytics in the region is just the tip of the iceberg. Enormous opportunities for vendors exist to help organizations unlock the value in their data," Daryani added.

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