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MARKET ANALYSIS Worldwide Software 2008Œ2012 Forecast

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MARKET ANALYSIS Worldwide Software 2008Œ2012 Forecast MARKET ANALYSIS Worldwide Software 2008–2012 Forecast Summary Richard V. Heiman IDC OPINION The worldwide software market underwent very strong revenue growth from $231.1 billion in 2006 to $262.7 billion in 2007, an annual increase of 13.7%. However, from 2007 to 2012, the projected compound annual growth rate (CAGR) is a more modest 7.7%. IDC believes that: The 2007 growth was in part due to the weakness of the U.S. dollar against other major currencies. The software industry is maturing and consolidating. This phenomenon continued in 2007 and will do so in the future. Emerging market drivers such as Eureka 2.0, software appliances, service- oriented architecture (SOA), and virtualization will provide growth opportunities even in the face of macroeconomic uncertainties and volatility. Successful software vendors will be those that can best adapt their technologies and business models to the continually changing dynamics of the marketplace. Global Headquarters: 5 Speen Street Framingham, MA 01701 USA P.508.872.8200 F.508.935.4015 www.idc.com F.508.935.4015 P.508.872.8200 01701 Global Framingham,USA Street Headquarters:MA 5 Speen Filing Information: July 2008, IDC #213259, Volume: 1 Software Overview: Market Analysis TABLE OF CONTENTS P In This Study 1 Methodology ............................................................................................................................................. 1 Executive Summary.................................................................................................................................. 2 Situation Overview 8 Worldwide Software Market Performance in 2007.................................................................................... 8 Future Outlook 136 Forecast and Assumptions ....................................................................................................................... 136 Market Context ......................................................................................................................................... 162 Essential Guidance 163 Learn More 163 Related Research..................................................................................................................................... 163 Appendix A: Worldwide Software Market Sizing and Forecast Methodology............................................ 168 Appendix B: Worldwide Software Market Forecast Summary Glossary ................................................... 170 Appendix C: Competitive Market Map Methodology................................................................................. 214 #213259 ©2008 IDC LIST OF TABLES P 1 Worldwide Packaged Software Revenue by Region and Primary Market, 2007.......................... 3 2 Worldwide Packaged Software Revenue by Top 100 Vendors, 2005–2007 ................................ 14 3 Worldwide Packaged Software Revenue by Vendor, 2005–2007................................................ 16 4 Worldwide Packaged Software Revenue by Vendor and Region, 2007....................................... 38 5 Worldwide Application Development and Deployment Software Revenue by Top 50 Vendors, 2005–2007.................................................................................................................... 68 6 Worldwide Application Development and Deployment Software Revenue by Vendor, 2005–2007 ................................................................................................................................... 69 7 Worldwide Application Development and Deployment Software Revenue by Vendor and Region, 2007................................................................................................................................ 75 8 Worldwide Application Software Revenue by Top 50 Vendors, 2005–2007 ................................ 83 9 Worldwide Application Software Revenue by Vendor, 2005–2007 .............................................. 84 10 Worldwide Application Software Revenue by Vendor and Region, 2007 ..................................... 99 11 Worldwide System Infrastructure Software Revenue by Top 50 Vendors, 2005–2007................ 120 12 Worldwide System Infrastructure Software Revenue by Vendor, 2005–2007.............................. 121 13 Worldwide System Infrastructure Software Revenue by Vendor and Region, 2007..................... 127 14 Worldwide Packaged Software Revenue by Top 50 Vendors and Operating Environment, 2007....................................................................................................................... 135 15 Key Forecast Assumptions for the Worldwide Software Market, 2008–2012............................... 137 16 Worldwide Packaged Software Revenue by Primary Market and Region, 2007–2012................ 159 17 Worldwide Application Development and Deployment Software Revenue by Operating Environment, 2007–2012 ............................................................................................................. 161 18 Worldwide Application Software Revenue by Operating Environment, 2007–2012 ..................... 161 19 Worldwide System Infrastructure Software Revenue by Operating Environment, 2007–2012..... 161 20 Worldwide Packaged Software Revenue, 2005–2012: Comparison of June 2007 and June 2008 Forecasts ............................................................................................................................ 162 21 Exchange Rates, 2003–2007....................................................................................................... 170 ©2008 IDC #213259 LIST OF FIGURES P 1 Worldwide Packaged Software Revenue by Primary Market and Region, 2007.......................... 3 2 Application Development and Deployment Competitive Market Map........................................... 10 3 Applications Competitive Market Map .......................................................................................... 11 4 System Infrastructure Software Competitive Market Map ............................................................ 12 5 Worldwide Packaged Software Revenue by Primary Market, 2007–2012 ................................... 160 6 Worldwide Packaged Software Revenue by Region, 2007–2012 ................................................ 160 7 Worldwide Packaged Software Revenue, 2005–2012: Comparison of June 2007 and June 2008 Forecasts ............................................................................................................................ 163 #213259 ©2008 IDC IN THIS STUDY This IDC study provides a comprehensive summary of the worldwide packaged software market for 2007 and a five-year revenue forecast by geographic region and operating environment through 2012. Vendor revenue and market share for nearly 1,000 vendors are provided for 2007. Methodology This study, published annually, encompasses the entire packaged software market, with the applicable market segment elements outlined below. Appendix A describes the methodology used for the development of content, and Appendix B provides a glossary that offers detailed market definitions and explains how IDC defines packaged software revenue. Appendix C describes the Competitive Market Map (CMM) methodology. In addition, please note the following: The information contained in this study was derived from the IDC Software Market Forecaster database as of June 23, 2008. All numbers in this document may not be exact due to rounding. For more information on IDC's software definitions and methodology, see IDC's Software Taxonomy, 2008 (IDC #210828, February 2008). Primary Markets Covered The study presents revenue and shares for the following primary markets as well as worldwide totals: Application development and deployment (AD&D) Applications System infrastructure software (SIS) Vendor and Market Segmentation Geographic Regions With regard to software product demand, three distinct geographical regions are considered in each vendor's revenue: Americas Europe, the Middle East, and Africa (EMEA) Asia/Pacific Each segment is defined in the software market glossary in Appendix B. ©2008 IDC #213259 1 Operating Environments Market revenue and forecasts are also segmented by operating environment. Operating environments are defined collections of discrete hardware platforms and/or operating systems. The operating environments for this study are as follows: Mainframe Unix Linux and other open source Windows 32 and 64 Other (includes i5 and OS/400, other host/server, embedded, other single user, and hardware appliances) Each operating environment is defined in Appendix B. Software Market Taxonomy This study's software market glossary (see Appendix B), which is extracted from IDC's Software Taxonomy, 2008 (IDC #210828, February 2008), presents a functional view of the worldwide software market. IDC defines functional markets in terms of the features, functions, and attributes of the software package, not the problem being solved or the industry into which the software is deployed. In IDC's software market taxonomy, the worldwide software market is divided into 81 functional markets. The market information contained in this study is part of IDC's global software market coverage. The Related Research section of this study references companion IDC studies that go into greater detail and depth in analyzing individual software markets. Executive Summary The Packaged Software Market in 2007 Worldwide revenue increased from $231.1 billion in 2006 to $262.7 billion in 2007, an annual increase of 13.7%. Figure
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