Big Data/Analytics, Content Applications, and System Software Drove Enterprise Software Growth in the First Half of 2013, According to IDC

FRAMINGHAM, Mass.--()--International Data Corporation (IDC) today released the latest results from the Worldwide Semiannual Software Tracker. For the first half of 2013 (1H13), the worldwide software market grew 5.5% year over year reaching a total market size of $179 billion, which is close to IDC's forecast of 5.7% growth for the full year. It's also slightly higher than 5.1% growth experienced in the first half of 2012, which could be interpreted as a sign of recovery following a period of uncertainty caused by turmoil in the Eurozone. IDC expects this moderately positive scenario to continue for several more years.

"Enterprises are seeing new opportunities to drive new and improved products and services by leveraging information. Therefore, it stands to reason that software to manage, access, and share information (structured and unstructured) continues to be a priority for competing in today's economy and a driver of software market growth," said Henry D. Morris, Senior Vice President for Worldwide Software, Services and Executive Advisory Research.

All three primary segments that comprise the total software market in IDC's software taxonomy – Applications; Application Development & Deployment (AD&D); and Systems Infrastructure Software – grew between 5% and 6% year over year in 1H13. It was the Applications primary market which finished slightly higher with a 5.8% growth rate because of the strong gains in the Content and Collaborative Applications markets. Within the Collaboration market, Enterprise Social Networks solutions grew 28.3% year over year and now represents almost 13% of the total Collaborative Applications market. It has gained 10 points of market share in the last five years within an environment that includes mature solutions such as Email Applications. In contrast to previous years, CRM solutions seem to have reached some stability while Content Applications have accelerated because of recent product launchings, the increasing trend of content-collaboration support for business processes, and digital marketing. Microsoft has improved its leadership in the Applications primary market by gaining one point of market share up to 14.9%. Microsoft's strongest Applications secondary markets are Content and Collaborative Applications. SAP, Oracle, IBM, and Intuit complete the Top 5 vendors for the Applications primary market, with Intuit gaining 0.6 points of share in this market.

In the Applications Development & Deployment (AD&D) primary market segment, which comprised 23.4% of total software revenue, year-over-year growth for 1H13 was 5.1%, which is slightly lower than for software overall. Within this market segment, Integration and Process Automation Middleware and Structured Data Management stood out with year-over-year growth rates above 6%. While the former is driven by Business Process Management adoption, the latter is largely driven by the Relational Database Management Systems market growth, which grew at 7.0% year over year because Big Data and analytics adoption continues. Big data and analytics are also closely tied to the fast growth of social business software markets on the Applications side. From a vendor perspective, Oracle led the AD&D primary market in 1H13 with 23.1% of market share followed by IBM, Microsoft, SAP, and SAS. Microsoft and SAP experienced the highest growth rates due to the demand for their RDBMS solutions.

In the System Infrastructure Software primary market segment, which comprised 23.4% of total software revenue and grew 5.1% year over year in 1H13, the System Software secondary segment grew more than 8% year over year driven by the launching of Windows 8 and Cloud enablement solutions adoption from vendors like Vmware and Citrix. Microsoft has improved its leadership in the System Infrastructure Software overall with 30.1% of market share, gaining more than 1.5 points and followed by IBM, Symantec, EMC, and VMware.

Top 5 Worldwide Software Vendors, First Half of 2013 Revenues and Market Share

(revenues in US$M)

Vendor  

1H13
Revenue

 

1H13 Market
Share

 

1H12
Revenue

 

1H12 Market
Share

 

Year-Over-
Year Growth

Microsoft   $32,990   18.4%   $29,398   17.3%   12.2%
Oracle   $15,442   8.6%   $15,076   8.9%   2.4%
IBM   $13,582   7.6%   $13,632   8.0%   -0.4%
SAP   $8,101   4.5%   $7,570   4.5%   7.0%
Symantec   $3,234   1.8%   $3,148   1.9%   2.7%
Others   $105,867   59.1%   $101,103   59.5%   4.7%
Total   $179,216   100.0%   $169,927   100.0%   5.5%

Source: IDC Worldwide Semiannual Software Tracker, October 2013

On a regional basis, the top growing regions were Latin America and the U.S. with 8.6% and 7.9% year-over-year growth respectively, making the Americas stronger than ever with 52.8% market share, which is one point above last year's market share. As expected, Western Europe started a slow recovery reaching a 5.1% year-over-year growth in 1H13. In Asia/Pacific (excluding Japan), the region had a year-over-year growth rate of 6.6%. Unfortunately in Japan, the devaluation of the yen turned positive growth in local currency into a decline of -9.2% in U.S. dollars.

An interactive graphic showing regional software revenues and year-over-year growth for 1H13 is available here. The chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic can be found by viewing this press release on IDC.com.

IDC's Worldwide Semiannual Software Tracker provides total market size and vendor share for the seventy-nine segments of the global software market. The Tracker covers more than 800 software vendors across a total of 49 countries markets. Historical market size, vendor share, and forecasts are updated on a semiannual basis.

For more information about IDC's Worldwide Semiannual Software Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app, available at iTunes, allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 49 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events' company. You can learn more about IDC by visiting www.idc.com.

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Contacts

IDC
Patrick Melgarejo, +51-996328641
pmelgarejo@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com

Release Summary

According to the IDC Worldwide Semiannual Software Tracker, the worldwide software market grew 5.5% year over year reaching a total market size of $179 billion in the first half of 2013.

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Contacts

IDC
Patrick Melgarejo, +51-996328641
pmelgarejo@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com