Enterprise apps market to grow steady in APEJ

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Analyst firm IDC said it expects the technology trends and the increased interest in customers for enterprise software to drive growth. However, any growth may still be stunted by the negative economic sentiments prevailing in the region. As per the latest IDC report, the EA market revived slowly but still surpassed forecasts and reached a 9.8 percent growth year-on-year (YoY) in the Asia-Pacific excluding Japan (APEJ) region in 2011. The EA market is expected to grow at a compound annual growth rate (CAGR) of 9.5 percent to reach $8.6 billion till 2016. ?Although the economy hasn’t revived completely, it has been showing some optimistic signs; uncertainties and risks continue to propel the usage of enterprise software to reduce cost, improve productivity and efficiency, and mitigate risk,? said Sabharinath Bala, research manager of at IDC. Key points from the study include:

? SAP, Oracle, UFIDA, Infor, and Microsoft roundup the top 5 vendors by market share and hold almost half of the overall EA market. ? SAP and Oracle have a dominant presence across the overall secondary markets, but vendors like Salesforce.com, Bokesoft, and JDA Software have a strong play in their respective secondary market areas like customer relationship management (CRM) market and product supply chain (PSC) market. ? Although vendors have done well to create awareness about SaaS deployment of enterprise software, there hasn’t been much traction except for the mature economies. ? Acquisitions were rampant in the EA space, as some the major vendors wanted to add technology and delivery capabilities to their existing portfolio. Some of these acquisitions have already started delivering value, but a few of them are yet to be completely amalgamated and brought to the market.

At the secondary market level, CRM market saw a minor increase in percentage share in 2011 and stood at 23.3 percent as compared to 22.7 percent in 2010, while there was a slight decline for PSC applications; enterprise resource management (ERM) market also witnessed a slight increase from 2010. Sales among the CRM functional markets, and human capital management and financial accounting applications among the ERM functional markets posted the largest growth in 2011.]]>

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