The software market (licences plus software maintenance services) will grow from $148 billion in 2005 to $229 billion by 2010. Growth will be strongest in the information management sector and least strong in the infrastructure software sector. Software growth is currently higher than economic growth, and although the growth rate will reduce, it will continue to be above growth in GDP. This report provides a thorough analysis of the software market over the next five years.

Table of contents

Key messages

• Steady growth – but not for everyone
• Software is a maintenance business
• Mid-sized software companies: nearly an endangered species
• Disruptive business models forcing change
• Ecosystems not applications or platforms
• CIOs under pressure
• A financial transition
• Spending short-term to save long-term
• Change at the desktop

Market definition

The global outlook

• Steady growth
• Figure 1 Overall enterprise expenditure on software products and growth, 2005–2010
• Figure 2 Regional breakdown of enterprise expenditure on software products 2005–2010
• Figure 3 Software product market: percentage growth by region 2006–2010
• Figure 4 Performance of the different software market sectors, 2005–2010
• Mid-sized software companies: an endangered species?
• Disruptive business models part one: ‘software as a service’
• Disruptive business models part two: open source
• Ecosystems replace battle of the platforms
• CIOs fighting for control
• Spending short-term to save long-term
• Change at the desktop

Identifying the leaders

• Figure 5 Revenues of the ‘top 25’ software suppliers in 2005

Infrastructure software

• The infrastructure software market segment defined
• Market outlook
• Figure 6 Software infrastructure market size and growth, 2005–2010
• The top software infrastructure suppliers
• Figure 7 Top software enterprise infrastructure suppliers in 2005
• Application lifecycle
• Integration
• DBMS
• OS and storage
• Security

Packaged applications

• Market outlook
• Figure 8 Packaged enterprise applications market size and growth, 2005–2010
• The top packaged application suppliers
• Figure 9 Top 25 packaged application software suppliers in 2005 (annual revenues)
• Business applications
• Office productivity applications
• Specialised and vertical applications

Information management

• Market outlook
• Figure 10 The information management software market, 2005–2010
• The top information management software suppliers
• Figure 11 Top information management software suppliers in 2005
• Business intelligence
• Content management
• Workplace software

Regional outlook for the software markets

• Figure 12 World region share of software expenditure, 2005
• Figure 13 World region share of software expenditure, 2010

Market scenario

• Figure 14 Market development scenario

Regional forecasts

• Figure 15 End-user spend – World total
• Figure 16 End-user spend – North America
• Figure 17 End-user spend – Latin America
• Figure 18 End-user spend – Western Europe
• Figure 19 End-user spend – Eastern Europe
• Figure 20 End-user spend – China-India
• Figure 21 End-user spend – Asia-Pacific
• Figure 22 End-user spend – Middle East and Africa

Forecast methodology

• Figure 23 Forecast methodology

Calculations