Published on the 22/02/2010 | Written by Newsdesk
Ovum says major vendors are well-placed as the economy improves…
Consulting firm Ovum is predicting an ongoing recovery within the Australia/New Zealand software market, saying the ANZ market will show growth of above 4.8% in 2010.
While even with such a relatively positive forecast, the market will not see pre-recessionary growth levels until the end of 2012 at the earliest, Ovum says by the end of 2013, the market will grow to over $A5.6 billion. “The ANZ software market did not suffer a huge drop off in growth during the financial crisis period and these ongoing revenue streams have enabled the major players to be well-positioned for the predicted upturn”, said Ovum principal analyst Jens Butler.
Even though the ANZ market tends to only contribute 2% to 5% of most global software organisations’ revenues, there is still substantial interest in the region, often as a test-bed for enhancements to products, offerings as well as their partner eco-systems.
“ANZ is currently leading the pack in terms of economic performance and will see further influx of investment going forward, but not reaching pre-recession growth levels before 2012,” says Butler.
The recession did impact the IT software market in ANZ to some extent, but with a large proportion of revenues locked into multi-year deals, this area was less impacted than others. Even with such annuities, the market’s growth rate did take a slight hit, but has rebounded on the back of the pent-up demand being released within a number of the key verticals and, as such, this is leading the investment charge into 2010.
“Systems infrastructure software will see growth on the back of hardware refresh and windows 7 uptick/replacement programmes and information management demand will continue to grow exponentially,” Butler says.
