Software Revenues Grew Twice as Fast in Emerging Markets as in Mature Markets in 2012, According to IDC

FRAMINGHAM, Mass.–(BUSINESS WIRE)–The worldwide software market grew 3.6% year over year in 2012, less than half the growth rate experienced in 2010 and 2011, according to the International Data Corporation (IDC) Worldwide Semiannual Software Tracker. Although some deceleration was expected, the economic contraction in the mature markets of Western Europe and Japan played a determinant role in the overall market performance. Meanwhile, the emerging markets of Central and Eastern Europe, Middle East, and Africa (CEMA), Latin America, and Asia/Pacific (excluding Japan, Australia, and New Zealand) enjoyed year-over-year growth of 7.2% in 2012. This was the fourth consecutive year of solid growth in these emerging markets, enabling them to collectively gain more than two points of worldwide market share over this period.

Mature markets still represent more than 85% of the worldwide software opportunity, but in recent years the strong growth in these emerging markets has attracted the attention of industry leaders. On the surface, the high-level competitive scenario within the emerging markets is not much different from mature markets. The five largest vendors are the same as in mature markets. However, there is a growing dependence on the emerging markets among these top players. Emerging markets now represent a higher share of global revenues for them than the market average of 14.4%. And emerging markets represent a higher share of Oracle and SAP revenues than for the other top players, representing more than 20% of their worldwide software revenue.

Among the top vendors, IBM, Oracle, and SAP stand out with growth rates that outperformed even the emerging market average. For IBM, the Latin America database and data management business was very successful in 2012 as was the application server business in CEMA and Asia/Pacific. In addition, IBM's software solutions have shown high double-digit growth rates in all emerging regions. Oracle enjoyed similar results for its database and data management solutions across all emerging regions while its ERM business was a top performer in Asia/Pacific. But the fastest growing vendor among the top 5 within the emerging markets was SAP. Its ERM market positioning was particularly good, growing at a double-digit pace, while its CRM and SCM solutions also experienced high double-digit growth, especially in Latin America and Asia/Pacific. SAP's data management and infrastructure software solutions also contributed to the vendor's overall performance within the emerging markets.

"The competitive scenario in Latin America is revolving around emerging trends such as converged systems, where software-driven solutions have generated demand for Oracle's Exa offering, particularly in Brazil. SAP has capitalized on Hana and its customer-centric portfolio around mobility, advanced analytics, and big data," said Cesar Longa, Software Program Manager in IDC Latin America.

IDC's Worldwide Semiannual Software Tracker provides total market size and vendor share for the eighty-two segments of the global software market. The Tracker covers more than 800 software vendors across a total of 49 countries markets. Historical market size, vendor share, and forecasts are updated on a semiannual basis.

For more information about IDC's Worldwide Semiannual Software Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app, available at iTunes, allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (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 to 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 110 countries. For more than 49 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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