03 May Modernization & IT Transformation Projects Are Behind Growth in Enterprise Application Software Market
Global budget on enterprise application software will increase 7.5% to reach $149.9 billion in 2015, and it is expected to increase to more than $201 billion by 2019, according to the latest forecast from Gartner. Furthermore, long-term budget increase will be affected primarily by modernization, expansion and IT transformation projects.
Bianca Granetto, a director of research at Gartner says, “The majority of spending is going towards modernizing, functionally expanding or substituting long-standing business and office applications with cloud-based software-as-a-service. Projects have been approved and budgeted for, often over a multiyear period, meaning the pace of spending and adoption isn’t subject to any impending urgency.”
The market showing the highest expected growth during the forecast between 2014 and 2019 will be e-commerce, marketing and analytics software.
Here are some of Gartner’s key trends in the application software market.
1) Modernization of Core Enterprise Applications
2) Transitioning to New Consumption Models
3) Increase of Digital-Business Market Dynamics
4) Organizations Will Extend or Replace Human Capital Management Systems with SaaS
5) Application Purchases Will Increasingly Be “Build,” Not “Buy”
6) Reaching the Cloud Office Tipping Point
7) Advanced Analytics Adoption to Grow
8) Customer Relationship Management Continues Shifting to the Cloud
Among the above key trends, it is interesting to note the growth of advanced analytics. Gartner predicts that over 75 % of enterprises will deploy advanced analytics to enhance business decision-making by 2020. Therefore, creating intelligent apps with advanced analytics included in Kaonsoft Platform™ will become critical to achieving business success.
To read the full press release, click here.