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CDC license predictions point to enterprise software revival

Microscope contributor


CDC Software is predicting a significant rise in the volume of licence revenue it can reap from its installed base in the fourth quarter as a result of resumed buying activity in vertical markets.

As a result of a return to more seasonal patterns of spending the enterprise software application specialist has informed the analyst community it expects license revenue from its installed base to increase by 30% from Q3 to the $10.3m mark.

The manufacturing, life sciences, auto and food and beverage industries have all contributed licence growth, which the vendor forecasts will be split by 50% in the US, 31% in EMEA and 19% coming from Asia Pacific.

CDC has made three recent acquisitions in the software as a service arena, Activplant, Truition and gomembers, and these have also fuelled licence revenue growth.

“We have been seeing such as faster sales cycles and growth from virtually all of our vertical markets, which leads us to believe the enterprise software market is likely on the rebound,” said Bruce Cameron, president of CDC Software.

He also revealed that its plans to expand into the SaaS arena would continue: “We expect this segment to grow as a percentage of our total revenue over time as we acquire more SaaS companies in fast growth vertical markets such as e-commerce and the Not-For-Profit.”

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