Four Thousand Customer Wins in 2008 for Enterprise Applications Vendors Despite Global Recession, IDC Finds

FRAMINGHAM, Mass. – April 30, 2009 – Despite the severity of the global recession, the enterprise applications market posted more than 4,000 customer wins in 2008 IDC found, in one of the most extensive surveys of its kind. Many of these purchases were logged in the last quarter of 2008 when the economic downturn was broadly felt, underscoring the resiliency of the market.

"Based on the 2008 customer wins results, vendors that have succeeded in winning new deals consistently are those that managed to build and harness their vertical and ecosystem-building expertise, along with their customer insights and well-architected products that meet precise user requirements," said Albert Pang, research director, Enterprise Applications Research.

Additional key study findings include:

* A closer look at the 2008 customer wins points to a number of recurring themes that run through the decision-making process as well as the positioning of the winning vendors and the risks facing them if they want to prevail over time. Legacy system replacement, process improvement, and strategic and tactical add-on purchases resonated with the buying organizations for much of 2008.

* It will be more challenging to secure customer wins in 2009 because not only will vendors have to target the right customers with the appropriate products, they also need to anticipate their needs by providing tools for cost benefit analysis and readily available financing as well as implementation templates and performance guarantees.

* IDC believes that in this economy, the guiding principles of developing and selling enterprise applications will be transparency in one's operations, agility to spot and meet customer needs, as well as a commitment to using technology innovation as the means to make the lives of their customers easier.

* IDC recommends that due to increased emphasis of the public sector as a strategic vertical, enterprise applications vendors need to step up their own corporate governance programs in order to ensure that their business practices can withstand extreme regulatory scrutiny.

This IDC study, IDC Enterprise Applications Deal Watch, Analysis of 2008 Customer Wins (IDC #217912) presents the latest IDC Enterprise Applications Deal Watch survey results examining the details of 4,052 customer purchases announced by 125 vendors in 2008. These vendors continued to expand their presence across six major product categories for both the SMB and enterprise size segments and existing and net new customers in more than 24 vertical industries and five regions around the world in 2008.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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