Giga: Enterprise Software Market Maturing
Modest growth to come
According to a recent report from analyst firm Giga Information Group, the market for enterprise software is maturing. While the firm believes the market will continue to grow, products like ERP, Supply-Chain Management, and human resources applications will no longer see the kind of rapid growth they saw in the 1990’s.
Giga estimates the market for enterprise applications sits at about $62 billion dollars today, and will grow a modest 9% from this year to 2005. The company regards this growth as a recovery from last year, when revenues dropped 4%.
The dot-com era saw significant gains for these applications. In 2000, the sector grew by 39%. Giga does not believe enterprise applications will grow that quickly again.
Giga sees one opportunity in this market, however. Enterprises will continue to be interested in applications that help them save money. Giga points to applications that help take care of standard business processes, such as human resources and procurement, as areas where companies will continue to make new investments.
Chris McConnell is Product and Technology Editor for Enterprise Systems.