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Microsoft, SAP Named Software Leaders

By TC Doyle
May 05, 2014 - News

Data from market researcher IDC suggest strong growth in the global software market, thanks to healthy demand for big data, collaboration and analytics, and operating systems technologies.

In 2013, the global software market grew by 5.5 percent, which was nearly 28 percent faster than what the market grew in 2012, according to IDC’s Worldwide Semiannual Software Tracker.

Big data and analytics, collaboration and upgrades in systems software are driving the market from a technological standpoint, while rebounding economies in Europe and increased concern over global cybercrime are fueling expansion from a business point of view.

Among the big vendor winners in software were Microsoft and SAP, which, despite ongoing challenges to their businesses, have positioned themselves strongly in the market. Microsoft, which grew by an overall 5.5 percent in fiscal 2013 ended June 30, 2013, saw its software revenue grow by a healthy 12.2 percent, according to the study.

That compares favorably to other industrial-sized software giants, including Oracle and IBM, which saw their software sales grow by 2.5 percent and 1.2 percent, respectively. What makes Microsoft’s growth in software all the more impressive is the fact that the company’s base is so much larger. For example, its total 2013 software revenue of $65.6 billion dwarfs IBM’s software sales ($29.4 billion) and Oracle’s software business ($29.0 billion), according to IDC.

So much for the law of large numbers catching up with Microsoft. In fact, Microsoft saw its global market share increase to 17.8 percent from 16.7 percent, year-over-year, according to IDC.

For its part, SAP’s software sales grew 4.9 percent to $18.1 billion.

On a global basis, the total market for software increased to $369 billion in 2013, according to IDC. For perspective, that’s roughly the size of that the market for global e-commerce will be by 2017, according to Forrester.

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