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Cloud torques colossal change in the software market

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Red Herring or not but the big picture here is that the software industry is in the middle of a multiyear cyclical transition as organizations are focusing investment on technologies to support existing system structure, in order to maintain competitiveness, while still taking advantage of cloud/subscription-based pricing where it makes sense to grow and advance the business.

As stated by Chad Eschinger, research vice president at Gartner: “There is a shift in vendor rankings from 2013 at the top of the worldwide software market. This is the first time in Gartner’s global software market share research that Oracle has ranked second in terms of total software revenue with $29.6 billion and capturing 7.3 percent of the global market. Global trends around big data and analytics with business investment in database and cloud-based applications helped to drive Oracle’s top-line growth.”

“The software market has been changing shape over the past five years, and cloud is driving the bulk of this change as software vendors acquire and provide applications and infrastructure technology to support the cloud and the Internet of Things (IoT) movement,” alleged Joanne Correia, research vice president at Gartner. Supplementing that – “A clear indicator of this is that for the first time we have a pure cloud vendor in the top 10.”

Salesforce.com, with more than $3.8 billion in revenue during 2013, climbed two positions to capture the No. 10 slot of the worldwide enterprise software market, and it achieved the highest growth among the top 10 vendors at 33.3 percent. Salesforce.com has also moved into the top five for overall application revenue.

“Investors continue to focus on revenue growth and market share gains as the primary criteria when evaluating vendors,” held John Rizzuto, research vice president and Invest analyst at Gartner. Furthering that – “At this point, the new and emerging technology markets in software, such as digital marketing and public cloud computing, are so nascent that investors are favoring those companies that are early and aggressive in grabbing both market and mind share – in many cases dismissing progress on earnings and cash flow in hopes that they will one day follow.”

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Jawed Akhtar

A Journalist by interest and a Music Enthusiast by passion. Wedded to Mother Nature, Jawed indulges his aesthetics in travelling and reading books of varied genres. Having covered News stories for top Dailies in his formative years, that is, he is game for tryst with Technology at Techmagnifier.

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