Good news for Software Industry

India enterprise software market has shown broad growth and recovery in 2010. Revenue of the software sector increased by 16.3 per cent annually taking the growth to $2.5 billion, according to a new data released by Gartner, Inc. India's software revenue grew just 4.2 per cent to $2.1 billion in 2009. 

According to Asheesh Raina, principal research analyst at Gartner, "Major software vendors expanded their product portfolios, acquired companies where appropriate to their plans, and reached deeper into emerging markets, including India in 2010. The year represents a return to solid footing as the India market expanded in terms of revenue and maturity."         

Four of the top five vendors experienced revenue gains above the industry average.

The top slot of the list is occupied by Microsoft. It increased its enterprise software revenue market share in India to 28 per cent in 2010. Microsoft's results were enhanced in 2010 by the broader adoption of new releases of the Windows 7 operating system and Microsoft Office 2010 productivity software. IBM maintained its No. 2 ranking in 2010. The company enjoyed same position last year as well. Oracle showed the strongest growth among the top five vendors, as it increased its revenue by 25.2 per cent. Its growth was achieved across all software markets, with faster growth emerging from its business intelligence, security, IT operations, and data integration and quality tools offerings. Among the top 25 vendors in India, VMware led the group with more than 51-per cent growth in 2010, followed by Cisco with more than 31 per cent. The top 25 vendors accounted for nearly 94-per cent share, or more than $2.3 billion, of the overall software market.

The enterprise software vendor landscape continues to change as mergers and acquisitions (M&As) are expected to continue as vendors and service providers look to expand their customer bases, add unique features aligned to a vertical-market or technology function, and improve overall market presence.