Double-Digit Growth For Supply Chain Management Software Sellers
May 21, 2012 Jenny Thomas
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Despite uncertain economic times in most industries, IT related or not, there’s at least one group that’s got a reason to smile. According to a recent report from the analysts at Gartner, the worldwide supply chain management software market grew 12.3 percent in 2011, totaling out at a whopping $7.7 billion. Just two years ago, IT Jungle reported on slumping sales in SCM software revenue, which hit a mere $6.2 billion in 2009. The jump in 2011 is actually the second year of double-digit growth for the SCM software market. There wasn’t any shuffling for position amongst the top five players in the SCM market from year to year. SAP, Oracle, JDA Software, Ariba, and Manhattan Associates, all held onto their positions, each increasing revenues from 2010 to 2011. So it’s no big surprise that SAP continued to lead in SCM software revenues, accounting for 19.9 percent of the worldwide market. Oracle came in second with 16.9 percent of market share. Among the top five vendors, Ariba experienced the strongest growth with revenue increasing 46.5 percent in 2011.
“The SCM software market is fragmented, with a plethora of small and midsize vendors (with revenue of less than $50 million) across regions and its four primary market segments,” commented Chad Eschinger, research vice president at Gartner. “Nevertheless, the top five vendors collectively held 48.3 percent of the worldwide SCM software market based on 2011 total software revenue.” Gartner analysts found SCM offerings delivered as software as a service (SaaS) subscriptions continued to bolster above-market growth in 2011 at 21 percent. Perpetual licenses also grew significantly at 15 percent. “North America and Western Europe continued to be the prime consumers of SCM software in terms of dollars spent, with nearly 79 percent of market revenue,” said Eschinger. The Asia/Pacific regions also continued to experience robust growth that significantly outpaced the market average. European growth, however, did slow down last year. The report, Market Share Analysis: Supply Chain Management Software, Worldwide 2011, is available for purchase here on the Gartner website. RELATED STORIES Companies Still Bullish On Business Intelligence Spending Gartner Pads 2011 Spending Forecast with Media Tablets RFID Looks Better Without The Hype SCM Market Finds SaaS Beneficial in Otherwise Flat 2009 Analysts Top Off IT Spending Tank, Pump Up Earlier Expectations
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