APAC enterprise apps to hit $8.7B in 2015
Businesses in Asia-Pacific, excluding Japan, are emphasizing on productivity, process optimization and business integration and this, in turn, is driving growth in the region's enterprise applications market, noted IDC. It added that the market will reach US$8.7 billion in revenue by 2015.
The research firm's report, which was released Wednesday, stated that the enterprise applications market witnessed a 13.4 percent year-on-year growth in the second half of 2010 on the back of companies' looking to increase internal productivity and collaboration.
It went on to predict that this "positive impetus" will continue and drive the market, which is expected to rake in over US$5 billion in 2011, to grow at 13.74 percent CAGR (compound annual growth rate) until 2015 to become a US$8.7 billion market.
Countries covered in the IDC report include Australia, New Zealand, South Korea, India, China, Taiwan, Hong Kong, Singapore, Malaysia and Thailand.
"Newer delivery models, such as software-as-a-service (SaaS) and appliances for example, together with 'socialytic' applications and enterprise applications mobility, will start gaining traction and would graduate to mainstream adoption owing to the need for optimized business processes, better marketing, customer relationship and executive decision making," said Sabharinath Bala, research manager of IDC Asia-Pacific's enterprise application software department, in the report.
"Socialytics", he added, can be defined as the convergence of enterprise applications, unified communications (UC), collaboration tools, social media and analytics.
The report also revealed that while "core application modules" were the primary focus, software that handles enterprise asset management, financial performance and strategy management applications and other back-office applications are expected to "grow significantly" in 2011. This is because these areas are not substantially covered in traditional enterprise resource planning (ERP) apps, said IDC.
The research firm's report comes hot on the heels of Gartner's study on global enterprise software revenue, which was released on Jun. 22.
In an earlier report, Gartner said worldwide enterprise software revenue was projected to exceed US$267 billion this year, growing 9.5 percent from 2010's US$244 billion. The market is also expected to see continual growth into 2012, hitting US$288 billion that year.