Enterprise software market recovers in 2010 with $245-billion revenue

By eGov Innovation Editors | May 9, 2011

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CONNECTICUT - The worldwide enterprise software market posted revenue of $245 billion in 2010, representing an 8.5 percent increase from 2009, research firm Gartner Inc. said.
 
"In 2010, major software vendors expanded their product portfolios, acquired companies where appropriate to their plans, and reached deeper into emerging markets," said Joanne Correia, managing vice president at Gartner. "The year represented a return to solid footing as the market recovered and expanded in terms of revenue and geographies.

Three of the top five vendors experienced revenue gains above the industry average, according to Gartner.

Microsoft maintained the No. 1 position as it increased its worldwide enterprise software revenue market share to 22.4 percent in 2010.

"Microsoft's total software revenue results have been improved by new strategies aimed not only at individuals, but also at organizations and multiple delivery models. The company is placing more emphasis on enterprise application and infrastructure software programming platforms," Gartner explained.
 
IBM maintained its No. 2 ranking but Gartner disclosed that it would have been the No. 1 enterprise software vendor if consumer sales of Microsoft's office and operating systems were not counted.

"IBM sells only to enterprises and partners. The company's software revenue grew more than 5.7 percent in 2010, mainly due to its WebSphere, Tivoli, Information Management, Operating Systems and Rational brands. IBM expanded dramatically in 2010 into the applications with a focus on e-commerce, marketing and sales with more than 20 industry solution frameworks as its "smarter planet" go-to-market strategy evolves," Gartner said.

Oracle at No. 3 showed the strongest growth among the top five vendors, as it increased its revenue 19.4 percent.

"It has kept most acquired technologies intact while integrating the infrastructure and middleware into Oracle Fusion Middleware (OFM) 11g with some integration across the application portfolio. Oracle expects continued market momentum in its industry offerings, middleware, data quality and integration tools, master data management, database CRM and SCM solutions," said Gartner.

SAP and Symantec cornered the fourth and fifth places, respectively.