Enterprise software spend to rebound in 2010: Gartner

Post GFC spend will grow to 8.2 per cent in Australia

Gartner is tipping a bullish 8.2 per cent growth in Australian enterprise software expenditure next year, up from the 5.4 per cent growth rate of 2009.

According to the analyst firm, the revenue growth is being supported by a consistent maintenance revenue stream and a strong vendor channel and service infrastructure, as well as positive expectations for end-user software budget increases in 2010.

“While some mature countries are experiencing a notable recession, Australia's economic growth in 2009 will experience only slight negative growth before picking up in 2010,” the firm said. “Australia also has the advantage of a well-established IT infrastructure and a well-developed sales and service infrastructure.”

In the Asia-Pacific region, Gartner is predicting enterprise software market revenue will reach $US22.1 billion in 2010, posting 10.2 per cent growth.

The figure is an up-tick from 2009’s expected 6.6 per cent growth, which itself was a slow down from the 13.8 per cent growth of 2008.

Breaking down the enterprise software spend, Gartner predicts that infrastructure software will represent 64.4 per cent of enterprise software spending in Asia-Pacific in 2010.

The bulk of which will consist of operating systems, database and security software segments. Data integration tools and virtualisation software will have the fastest CAGRs in the next five years in the infrastructure software category, the firm predicts.

Application software spending is predicted to grow at 9.9 per cent over the next five years with ERP and office suites remaining the largest segments throughout the forecast period. Web conferencing and project and portfolio management (PPM) will have the fastest CAGRs within the application software category the firm predicts.

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