Middleware and infrastructure market keeps growing

Summary:Gartner reports solid growth within middleware and infrastructure software space. Will it continue?

IBM led last year's middleware and infrastructure software market, with close to one-third of worldwide spending. Oracle and Microsoft followed in second and third place, respectively.

These calculations come from Gartner's latest report on the worldwide application infrastructure and middleware software revenue market, which saw solid growth in the most recent year. Middleware and infrastructure brought in $21.5 billion in 2013, a 5.6 percent increase from 2012, Gartner says.

The reason things have been growing? The rising interest in cloud and big data analytics, the consultancy says. "We are seeing a growing interest toward newer offerings, such as platform as a service (PaaS), low-latency messaging, complex event processing and in-memory data grids," says Fabrizio Biscotti, research director at Gartner. Emerging opportunities such as cloud computing, Internet of Things, mobile enablement, intelligent business operations and in-memory computing are all key areas.

Will this robust growth continue through 2014? There's no reason not to think it will. Looking at IBM's first-quarter results, issued in April, Big Blue's software sales were stronger over the past quarter. WebSphere led the way with revenues increasing 12 percent year over year.  Overall revenues from the Software segment were up two percent to $5.7 billion compared with the first quarter of 2013. Revenues from key middleware products, which include WebSphere, Information Management, Tivoli, Workforce Solutions and Rational products, were $3.7 billion, up 4 percent versus the first quarter of 2013.

The second-ranked middleware vendor, Oracle, reported new software licenses and cloud software subscriptions revenues were up 4 percent to $2.4 billion in the most recently reported quarter. Software license updates and product support revenues were up five percent to $4.6 billion. Cloud Software Subscriptions revenues grew 25 percent, while Engineered Systems revenue grew more than 30 percent in the quarter. Sales of Oracle’s Cloud Applications grew by more than 60 percent.


Worldwide Vendor Revenue Estimates for Total AIM Software, 2013

(Millions of U.S. Dollars)

Company

 

2013 revenues

 

2013 market share

 

2012 share

 

Change in revenues 2012-13

IBM

 

$6,448

 

30.0%

 

31.1%

 

1.6%

Oracle

 

$3,298

 

15.3%

 

16.1%

 

0.4%

Microsoft

 

$1,084

 

5.0%

 

5.0%

 

6.0%

Software AG

 

$703

 

3.3%

 

3.2%

 

8.1%

Tibco

 

$545

 

2.5%

 

2.7%

 

-2.3%

Others

 

$9,435

 

43.9%

 

41.8%

 

10.8%

Total

 

$21,512

 

100%

 

100%

 

5.6%

Source: Gartner (May 2014)

(Thumbnail photo: Joe McKendrick)

(Disclosure: The author has performed research work sponsored by Oracle, mentioned in this article.)

Topics: Enterprise Software

About

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. Joe is co-author, along with 16 leading industry leaders and thinkers, of the SOA Manifesto, which outlines the values and guiding principles of service orientation. He speaks frequently on cloud, SOA, data, and... Full Bio

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