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IDC reports software market growth

The worldwide software market grew 3.6 per cent year over year reaching a total market size of US$342 billion in 2012, according to an IDC report.

Rapid growth in cloud deployments is fuelling growth in application areas associated with social business and customer experience

Henry Morris, Worldwide Software, Services and Executive Advisory Research

This is less than half the growth rate experienced in 2010 and 2011, according to IDC’s Worldwide Semiannual Software Tracker.

However, several areas within the software market rose by six to seven per cent including data access, analysis and delivery, collaborative applications, CRM applications, security software, and system and network management software.

“The management and leveraging of information for competitive advantage is driving growth in markets associated with big data and analytics,” said Henry Morris, senior vice president for Worldwide Software, Services and Executive Advisory Research. “Similarly, rapid growth in cloud deployments is fuelling growth in application areas associated with social business and customer experience.”

The application development and deployment segment comprised around 24 per cent of total software revenues in 2012 and showed a 4.6 per cent year-over-year growth rate.

This increase can be attributed to the six per cent growth in data access, analysis, and delivery, as well as a 5.9 per cent rise in the structured data management secondary markets.

The applications primary market segment, which comprises almost half of total software revenue, recorded 3.3 per cent of year-over-year growth for 2012, while the CRM and collaborative applications rose by seven per cent.

Cloud migration trends, the enterprise social software market, big data analysis and analytics are the main factors behind this increase.

System infrastructure software, which forms 27 per cent of total software revenue, increased by 3.3 per cent year over year in 2012.

The US market grew six per cent year over year, while the emerging markets in Latin America, Asia/Pacific (excluding Japan), and Central Europe, Middle East, and Africa also experienced solid growth in 2012. Western Europe was the only region to record a downward turn.

IDC’s Worldwide Semiannual Software Tracker provides total market size and vendor share for the 82 segments of the global software market and covers more than 800 software vendors across 49 countries.

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