Big Data Accelerates 2013 Software Market; IBM Absent From Top Spots
May 27, 2014 Dan Burger
Are we there yet? The year-long trek that determines whether the software market gained or lost in 2013 is over. And the trip gets two thumbs up for the gains made. However, IBM was locked out of the leader position in all of the software categories.
The worldwide software market grew 5.5 percent during 2013, rocking and rolling to a total market size of $369 billion, according to the numbers crunchers at IDC. According to the paid observers at IDC, Europe’s economic recovery and a better than predicted outcome in the US, lifted software revenue past its high water 2013 markers. Barring any unexpected surprises, IDC is comfortable with its prediction that similar percentage gains will be tacked on in the coming years.
Big data and analytics were highlighted for their performance gains, but there was little separation among any of the software heavy hitters.
The Application Development and Deployment segment was the fastest growing market. It zipped along with a 5.6 percent year-over-year growth rate, which is impressive for a segment that commanded 23 percent of total software revenues in 2013.
Oracle continued to lead the AD&D segment with steady market share of 21.5 percent. Next in line were IBM, Microsoft, SAP, and SAS. Among these vendors, Microsoft and SAP gained the most market share year over year.
Within that segment, IDC determined increased growth by Structured Data Management (7.3 percent) and Data Access, Analysis, and Delivery (6.0 percent) were both accelerants.
Advanced Analytics Software and Database Management Systems (DBMS) software were chief factors due to expanded Big Data and Analytics adoption.
In the Applications primary market segment–which comprised 50 percent of total software revenue–year-over-year growth for 2013 was 5.5 percent. From a vendor perspective, Microsoft led the led the pack with 14.1 percent of market share, while gaining more than 1 point of share year over year. SAP, Oracle, IBM, and Intuit followed. Microsoft and Intuit experienced the highest growth rates.
Within this market segment, big data and analytics adoption trend fueled Collaborative Applications and Content Applications propelling these categories to year-over-year growth rates exceeding 10 percent. Enterprise Social Networks and Team Collaborative Applications adoption grew at 13.2 percent year over year.
The launch of Windows 8, in addition to the adoption of virtual machine and cloud system software, pushed the System Software secondary segment to an 8 percent increase. Microsoft improved its leadership in the Systems Infrastructure Software market by claiming 29.3 percent market share. That’s up more than 1.5 points of share. IBM, Symantec, EMC, and VMware followed.
The Systems Infrastructure Software market factors into 27 percent of the total software revenue picture.
Latin America and North America were the top growing regions followed by Western Europe.
Japan was punished by the effects of yen devaluation, which resulted in a year-over-year decline of 11.6 percent in U.S. dollars.