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ERP revenue to reach US$24.9 billion in 2012

Anuradha Shukla | June 21, 2012
Global IT spending in 2012 is anticipated to focus on industry-specific applications, says Gartner.

Enterprise resource planning (ERP) revenue is projected to reach US$24.9 billion in 2012, according to Gartner which anticipates global IT spending in 2012 to focus on industry-specific applications.

The research firm predicts global spending on enterprise application software will total US$120.4 billion in 2012.

This increase represents a 4.5 percent increase from 2011 spending of US$115.2 billion.

Gartner has also predicted BI revenue to reach US$13 billion and CRM revenue to exceed US$13 billion this year.

"Spending in 2012 is anticipated to focus on industry-specific applications; upgrades to established, mission-critical software; integrating and securing established systems and infrastructure; and software as a service (SaaS) deployments representing extensions to, or replacement of, existing applications and new solutions," said Tom Eid, research vice president at Gartner.

Key markets in 2012

Gartner's report "Forecast: Enterprise Software Markets, Worldwide, 2011-2016, 2Q12 Update," cites business intelligence (BI) and customer relationship management (CRM) as the key enterprise application software market segments in 2012.

Other key segments include content, communications and collaboration; digital content creation (DCC); office suites and personal productivity; project and portfolio management (PPM); and supply chain management (SCM).

Organisations today are searching for ways to shift spending from capital expenditure to operating expenditure.

Factors such as cost optimisation and shifts in spending from "megasuites" to the automation of processes will continue to benefit alternative software acquisition models.

Gartner notes an increasing number of organisations searching for software functionality as a service or via cloud-based services rather than on-premises.

Vendors are thus driven to offer more technology as subscription-based solutions and "pay as you go" offerings.

"After more than a decade of SaaS and cloud service use, adoption continues to grow and evolve within the enterprise application markets. This is occurring as tighter capital budgets demand leaner alternatives, popularity and familiarity with the model increase, and interest in SaaS and cloud computing grows," said Eid.

 

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