Enterprise Software Market Growing Steadily with Improving Technology

Global Enterprise Software Market: Overview

Enterprise software is increasingly used by organizations across the globe and across most industry verticals for a number of line-of-business operations, including and not limited to human resources, business intelligence, manufacturing, customer relationship management, sales and service, planning, inventory and materials management, purchasing, finance and accounting, and marketing. The primary goal of using enterprise software is to enhance efficiency as well as productivity and gain a significant competitive advantage.

As more and more companies upgrade core functionalities, the global spending on enterprise application software is anticipated to grow, with most spending dedicated toward replacing, modernizing, or functionally expanding current office and business applications. The approval of bigger budgets for IT projects in companies is a positive sign for the overall enterprise software market.

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Global Enterprise Software Market: Major Segments and Key Trends

The shift toward cloud computing is one of the most significant trends that has positively impacted the global enterprise software market. Additionally, enterprise mobility solutions such as the trend of bring-your-own-device (BYOD) have increased the adoption and implementation of enterprise platforms. The growing demand for business intelligence and analytics has also driven the need for enterprise application software programs, thereby propelling the global market.

Some of the key limitations that players in the enterprise software market have to deal with include drawbacks associated with the software itself: customization and flexibility issues, the high cost of support and licensing, and complexities related to the migration of existing data. However, if companies can manage to overcome these issues, the benefits of enterprise software can help an organization thrive in a competitive business environment.

Enterprise software is used for a number of applications, including web conferencing, business intelligence, customer relationship management, project and portfolio management, digital content creation, enterprise resource planning, enterprise content management, and supply chain management. Enterprise software is used by organizations of all sizes – small, medium, and large – in various industry verticals such as manufacturing, media and entertainment, healthcare, retail, public sector, banking, financial services, and insurance, telecom, transportation, energy and utilities, and distribution. The major regions comprising the global enterprise software market are Europe, Asia Pacific, North America, and Rest of the World.

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Global Enterprise Software Market: Region-wise Outlook

Countries in North America and Europe have been identified as early adopters of enterprise software such as software as a service (SaaS) and customer relationship management (CRM). Enterprise software penetration rates in these regions are rather high and the adoption of these solutions has become commonplace with companies rapidly utilizing hybrid models of cloud as well as on-premise products. Countries in the Rest of the World, especially those in North Africa and the Middle East, have been reporting a very gradual rise in enterprise software adoption and these countries are still at the very early stages of SaaS penetration. The adoption of enterprise software in these regions is restrained by the lack of data center and network infrastructure, inadequate local-language cloud or SaaS offerings, and government regulations.

However, research indicates that investments in local-language offerings and build-out of data centers by vendors in emerging countries of Asia Pacific and Rest of the World are on the rise. These trends are likely to boost the enterprise software market in these two regions.

The global enterprise software market is dominated by players such as Salesforce.com, SAP, EMC Corporation, Symantec, Oracle Corporation, HP, Microsoft Corporation, IBM Corporation, CA Technologies, and VMware.

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