The market for small to medium-sized business (SMB) enterprise applications will grow by a compound annual growth rate (CAGR) of 10.6pc each year between now and 2012, IDC has predicted.
This will make the market worth US$80.3bn by 2012.
IDC is predicting increased spending by SMBs across the entire spectrum of enterprise applications.
“With an onslaught of software vendors seeking to capture the growth opportunity in the increasingly lucrative SMB segments, a leadership position will be awarded to those that shape their operating model around increasing customer value,” said Judy Hodges, research manager, small and medium business markets: enterprise applications, IDC. “In such a highly competitive marketplace, improving customer value is a market leader’s imperative.”
IDC is predicting opportunities to abound in this space due to regulatory compliance issues. To gain market share, software companies will have to deliver industry-specific functionality.
IDC also said companies in an increasingly competitive economy will be looking for enterprise applications that have the non-technical user in mind.
By Niall Byrne