Enterprise software mkt grew to $2.5 bn in 2010: report

The Indian enterprise software market showed broad growth and recovery in 2010, with total software revenue increasing 16.3% to total $2.5 billion, according to research firm Gartner.

In 2009, enterprise software revenue in India grew just 4.2% to $2.1 billion, Gartner said in a statement.

"In 2010, major software vendors expanded their product portfolios, acquired companies where appropriate to their plans and reached deeper into emerging markets, including India," Gartner Principal Research Analyst Asheesh Raina said.

The year represented a return to solid footing as the India market expanded in terms of revenue and maturity, Raina added.

Microsoft maintained its numero uno position as it increased its enterprise software revenue market share in India to 28% in 2010.

Its 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 (with a 13.9% market share) maintained its No 2 ranking in 2010. It could have become the No 1 enterprise software vendor if consumer sales of Microsoft's office and operating systems are not taken into account. IBM sells only to enterprises and partners.

IBM's software revenue grew more than 15.3% in 2010, mainly due to its WebSphere, Tivoli, Information Management, Operating Systems and Rational brands.

"IBM expanded dramatically in 2010 into the applications segment with a focus on e-commerce, marketing and sales with more than 20 industry solution frameworks as its "smarter planet" go-to-market strategy evolves," Gartner said.

Oracle, SAP and EMC followed behind in the tally with 11.5%, 8.3% and 2.4% market shares, respectively.

Gartner said the enterprise software vendor landscape continues to change as mergers and acquisitions (M&As) are expected to continue.

This is because 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.