![]() Vendors that fail to adapt to the new economic climate - by cutting their maintenance rates, for example - are likely to find themselves in their very own 'struggle for existence'.Īdaptive radiation in enterprise software is taking place thanks to the rise of cloud computing. This reduces its revenue-earning potential by causing the delay or cancellation of complex and costly upgrade projects, and by increasing the attraction of more affordable third-party maintenance services (such as Rimini Street). We can see both of these forces at work in the recent history of enterprise software.Ī major recent systematic change in the environment for traditional on-premise enterprise software has been the post-banking-crisis economic recession. Enterprise software only comprises 7.89 percent of the 2013 IT spending pie the biggest slice, 44.8 percent, goes to Telecom services: The only sector currently growing faster in Gartner's forecast is Devices, at 7.9% (driven by premium smartphone upgrades). ![]() How big is the enterprise software market? In Gartner's latest worldwide IT spending forecast ( March 2013), enterprise software accounts for $296.6 billion in 2013, showing an annual growth rate of 6.4 percent over 2012's $278.8bn. Meanwhile, enterprise application integration, aimed at reducing information 'siloing', is a costly and complex process that does little to encourage companies to implement the latest upgrades, or experiment with new software. For example, although commodity applications and suites can be customised (up to a point) for particular needs, problems can arise when upgrades roll out, leading to extra support and maintenance costs. ![]() The traditional enterprise software model is inherently inflexible and sluggish. ![]()
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