Global Enterprise Software Sales On Target This Year

Global enterprise software sales are on target to grow by more than four per cent this year, and to continue to grow until at least 2014, according to a new report from Gartner.

The analyst firm said that software sales will grow by 4.5 per cent to $232bn (£148bn) this year, and to $246.6bn (£158bn) in 2011 and $297bn (£190bn) by 2014.

"After declining 2.6 per cent in 2009 the worldwide market for enterprise software is recovering well, with signs of continuing growth on the horizon," said Joanne Correia, a managing vice president at Gartner.

"Ageing systems, as well as greater demand for security and aligning software with business requirements, are key decision factors in end users increasing their spending within the infrastructure software market."

Gartner identified some regional differences in predicted software sales growth. Asia Pacific will see a rise of 11.5 per cent this year, while western Europe will lag behind with 2.7 per cent. However, sales in the overall EMEA region will decline.

The analyst firm estimates that revenue in western Europe will reach $64.5bn (£41bn) in 2010, a 3.4 per cent fall against the $66.8bn (£43bn) reported in 2009.

However, the market is expected to reach $76.2bn (£49bn) by 2014, and the UK is showing "promise" when it comes to growth.

Gartner explained that, following a sales decline in 2009, companies are seeing the need to upgrade and have released funds in expectations of better times to come.

"These earnings were driven primarily by pent-up software demand, and with that demand having been mostly satisfied, somewhat slower growth is expected for the latter half of 2010," said Colleen Graham, a research director at Gartner.

"She said that despite a loss of momentum driving some organisations to exercise caution in end-of-year software purchases, "key markets such as virtualisation, operating systems and security are expected to finish the year with double-digit growth".

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