The enterprise applications (EA) software market in the Asia/Pacific excluding Japan (APEJ) region is predicted to grow at a rate of 9.5% per year to reach $8.6bn by 2016, according to International Data Corporation (IDC).
The research firm said the EA market revived slowly but still surpassed forecasts and reached a 9.8% growth year-on-year in the APEJ region in 2011.
IDC Asia/Pacific Enterprise Applications Software Research research manager Sabharinath Bala said, "Although the economy hasn’t revived completely, it has been showing some optimistic signs; uncertainties and risks continue to propel the usage of enterprise software to reduce cost, improve productivity and efficiency, and mitigate risk."
IDC expects technology trends like SaaS, socialytics, mobility and the rising interest in customers for enterprise software to drive growth, but, any growth may still be stunted by the negative economic sentiments prevailing in the region.
The latest IDC Asia/Pacific Semiannual Enterprise Applications Tracker, reveals that although vendors have done well to create awareness about SaaS deployment of enterprise software, there hasn’t been much traction except for the mature economies.
SAP, Oracle, UFIDA, Infor, and Microsoft were the top five vendors by market share and occupy almost 50% of the overall EA market.
SAP and Oracle have a dominant presence across the overall secondary markets, but vendors like Salesforce.com, Bokesoft, and JDA Software have a strong play in their respective secondary market areas like customer relationship management (CRM) market and product supply chain (PSC) market.
IDC observed acquisitions were rampant in the EA space, as some of the major vendors preferred to add technology and delivery capabilities to their existing portfolio.
While some of these acquisitions have already started delivering value, a few of them are yet to be completely amalgamated and brought to the market.
At the secondary market level, CRM market saw a minor increase at 23.3% in 2011 against 22.7% in 2010, while there was a slight decline for PSC applications; enterprise resource management market also had a slight increase from 2010.
