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Enterprise Software: Three Paths to Recovery

Home › Enterprise Software: Three Paths to Recovery

By Dick Weisinger

2009 is nearly behind us and all signs point to further economic recovery happening in 2010.  But how much and how fast?  That’s the question that AMR Research tried to answer.  Breaking a bit from the mold of analyst predictions, in making their predictions for Enterprise Software, AMR made predictions based on different economic recovery scenarios.

AMR 2010 predictions for Enterprise Software

The three scenarios ranged from modest to robust recoveries.  For 2009, AMR estimates that Enterprise Software sales declined roughly 6 percent.  While on-demand subscription sales actually saw positive results, traditional megavendors that relied on on-site licensing dragged down the results for the market segment.

Vendors like Lawson (-10%),  SAP (-9%), Microsoft Business Division (-8%), and Oracle (-4%) all saw declines.  While SaaS vendors like Salesforce.com (+22%), Concur (+15%), Descartes (+12%) saw growth.

AMR expects the trend towards as SaaS subscription model will continue into 2010.  The expectation is that the trend towards the subscription model will move from small and medium sized business to large companies.

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