Microsoft, Oracle, IBM still rule enterprise software: But look out, here comes the cloud

Microsoft, Oracle, IBM still rule enterprise software: But look out, here comes the cloud

Summary: Cloud company makes it into the ranking of the top 10 enterprise software companies for the first time.


While tech giants such as Microsoft, Oracle and IBM still account for the lion's share of enterprise software revenues, the cloud is having a major impact on how the industry looks.

Worldwide software revenue totalled $407.3bn last year, a 4.8 percent increase from 2012 revenues of $388.5bn according to figures from analyst Gartner, which said the software industry is in the middle of a "multiyear cyclical transition".

Microsoft continues to be the unquestionable enterprise software giant, its $65.7bn in revenue more than double that of its nearest rival Oracle, which this year narrowly overtook IBM ($29.6bn in revenue versus $29.1bn). Gartner said Oracle's strong showing was thanks to trends such as big data and analytics.

The software market has been changing shape over the past five years, and cloud is driving the bulk of this change, said Joanne Correia, research vice president at Gartner, as big software vendors buy or build the technology to support their customers' cloud and the Internet of Things projects.

Top 10 Worldwide Software Vendors, Worldwide, 2012-2013

Rank 2013 Rank 2012 Vendor 2013 Revenue ($bn) 2012 Revenue ($bn) Growth %
1 1 Microsoft 65.7 62.0 6
2 3 Oracle 29.6 28.7 3.4
3 2 IBM 29.1 28.7 1.4
4 4 SAP 18.5 16.9 9.5
5 5 Symantec 6.4 6.4 -0.8
6 6 EMC 5.6 5.4 4.9
7 7 HP 4.9 5.0 -2.7
8 9 VMware 4.8 4.2 14.1
9 8 CA Technologies 4.2 4.3 -2.6
10 12 3.8 2.9 33.3

Source - Gartner April 2014

"A clear indicator of this is that for the first time we have a pure cloud vendor in the top 10," she said. with $3.8bn in revenue during 2013, climbed two positions to capture the number ten slot in the worldwide enterprise software market.

While its revenues are little more than six percent of those of Microsoft, the cloud company is by far the fastest growing of the top 10, clocking up a 33.3 percent increase in revenue between 2012 and 2013. Gartner said it has also moved into the top five for overall application revenue.

Read more on cloud computing

Topics: Enterprise Software, Cloud, Emerging Tech

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  • I agree

    ...but Microsoft is doing pretty well in the Cloud also.
    • MSFT > #2 & #3 combined

      ... and we have FOSS crowd talking about MSFT collapse for how many years (if not decades) already? LOL
      • There is a limit to how many times MS can raise prices...

        And their core is still down over 20%.
        • They haven't found it yet...

's been 20-some-odd years and they're still growing faster than inflation. You'd think they'd have found the limit a long time ago..

          Of course, you do also realize that their biggest cash cow - Office - is much cheaper now than it was 15 years ago, right?
  • Where is Apple

    Yes, they are not Enterprise, but they make commercial apps that are sold in volume.
    • This is top 10

      they could be somewhere lower on the chart.

      I doubt that their commercial apps are sold to the tune of billions -millions, sure, I would agree to that.
    • Not a software company

      just for starters. Sure they produce software for there hardware products.
      But that's about it.
  • Interesting how Steve and others think "the Cloud" is the opposite...

    ...of Microsoft, IBM, Oracle, and SAP.

    Because apparently being big, old, and established means you can't possibly have cloud offerings.. well, except for pretty much everybody listed in that first line of my comment.
  • The real cloud leaders

    I work as software engineer and so far from my work experience, the real cloud leaders are Microsoft with is Azure offering (by far the most complete product by offering SAAS, PAAS and IAAS products) followed by Amazon (offering only IAAS, but still a pretty good product).

    I saw those 2 cloud services in nearly every business I had a contract with in the last 5 years.