Enterprise software revenue to hit $267B this year

Led by Latin America and Asia-Pacific, worldwide enterprise software revenue will increase by 9.5 percent from 2010, reveals Gartner report.

Worldwide enterprise software revenue will exceed US$267 billion this year, growing 9.5 percent from last year which clocked US$244 billion, according to a report Wednesday by Gartner.

The market is also expected to see continual growth into 2012, hitting US$288 billion that year.. The Asia-Pacific region, excluding Japan, is also projected to clock the second-fastest growth rate, after Latin America, by the end of 2011.

In fact, enterprise software spending in Asia-Pacific will hit US$26.4 billion, up from US$23.6 billion last year, Gartner noted, adding that this figure will grow pass US$40 billion by 2015.

"The market for enterprise software continues to recover well following the 2009 downturn," Joanne Correia, managing vice president at the research firm, said in the report. "The earthquake and tsunami in Japan has created additional marketplace uncertainty with a multiplicity of effects that are beginning to be determined. GDP (Gross Domestic Product) results and other research have pointed to a second-quarter 2011 slowdown in demand with some recovery later this year."

Worldwide, enterprise infrastructure software is on pace to reach US$153.3 billion this year, registering a 9 percent increase from 2010's revenue of US$140.6 billion. Within this category, operating systems (OSes) see the largest spending with a projected revenue of US$32.6 billion in 2011, followed by database management systems revenue at US$25.5 billion.

Enterprise application software spending will hit US$114.4 billion, growing 10.2 percent from last year's US$103.8 billion, Enterprise resource planning (ERP) will lead as the largest segment with revenues expected to hit US$23.3 billion, followed by office suites at US$15.7 billion.

Correira said: "With this latest research, we see short-term currency uplift for U.S. dollar-denominated growth for the period of 2011 to 2012, and downward adjustments in GDP across all regions.

"We have identified a strong correlation between GDP growth and enterprise software spending growth, where software tends to grow 4 to 6 percent above GDP in normal market conditions. However, we do have concerns about the rising cost of commodities including oil, and its impact on certain regional and country economies."