Software revenue to rise 8 per cent in 2008, Gartner predicts

It is predicted that global software revenue will total US$190.7 billion this year.

Gartner says the worldwide enterprise-software industry is poised for an 8.2 per cent revenue increase in 2008 despite fears of a possible recession and gloomy predictions about IT spending from some industry watchers.

Global software revenue will total $US190.7 billion this year, up from US$176.3 billion last year, Gartner predicts. It's not clear whether that growth will continue beyond 2008, Gartner adds, enumerating several challenges facing software vendors.

Growth is most likely for vendors that have diverse revenue streams through channels, new licenses and maintenance, and flexibility in contractual terms through models such as software-as-a-service, open source and outsourcing.

"Shrinking discretionary-spending budgets will heighten competition for new maintenance and license revenue streams, and place a renewed emphasis on vendor performance and viability," Gartner managing vice president Joanne Correia said in a press release. "Market consolidations and restructurings may accelerate as mergers and acquisitions among smaller and larger vendors increase."

Fears of a potential recession caused Forrester Research to predict modest growth of 2.8 per cent in US purchases of IT goods and services in 2008. Forrester previously predicted 4.6 per cent growth but revised its forecast downward this week after seeing newly available economic data.

Gartner said problems in the United States won't significantly impact worldwide software spending, but the analyst firm does not sound optimistic about the period after 2008.

In fact, Gartner said revenue declines in a few portions of the software market could begin as early as the second quarter of this year.

"The enterprise software market is undergoing major technology and business-model transitions that will last through 2012," Gartner research vice president Tom Eid said in a press release. "For the near term, software vendors will continue to face tough product life-cycle decisions and short-term pressure on price and margins, which will put the ability to be innovative at risk. The fundamental changes that are occurring in how software technology is deployed and used means no software market or vendor will remain untouched."

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jon Brodkin

Network World
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?