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Software vendors encouraged to modernise

Simon Quicke

Software vendors are going to have to get better at standing out from the crowd and with showing greater flexibility with their channel partners if they are to take advantage of changes happening in the market over the next few years.

According to Gartner's latest insights into the global enterprise software market, which it expects to increase by 7.5% and go past the $253bn mark in 2011, the analyst house has made some predictions about the future encouraging vendors to modernise applications in the light of the growth of SaaS and the cloud.

Cloud, virtualisation and SaaS are all expected to grow as is the use of social media and networking but the emphasis will be on taking advantage of those developments without spending large amounts of money.

Gartner expects the current weakened global economy to persist this year with the focus from customers remaining on tight budgets and upgrading existing systems rather than splashing out on new technology.

"In this shifting landscape, vendor differentiation in more competitive markets is crucial to survival. This requires a fundamental understanding of the market forces and business models needed to achieve profitable growth and sustain products and service, marketing programmes and channels," said Tom Eid, research vice president at Gartner.

"For 2011 through 2015, the highest instances of software market growth will align to the business requirements of attracting and retaining customers, enhancing business processes, improving collaboration and social networking, managing content of all types, reporting of performance and results transparency, and workforce effectiveness and flexibility," he added.


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