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Tuesday, April 01, 2014
Microsoft Retains No. 1 Spot; Oracle Moves Into No. 2 In Global Software Market


Worldwide software revenue totaled $407.3 billion in 2013, a 4.8 percent increase from 2012 revenue of $388.5 billion, according to Gartner, Inc. Oracle also took the second place in the vendor ranking list, leaving IBM in the third place.

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.

"There is a shift in vendor rankings from 2013 at the top of the worldwide software market," said Chad Eschinger, research vice president at Gartner. "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," said Joanne Correia, research vice president at Gartner. "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 (see Table 1). Salesforce.com has also moved into the top five for overall application revenue.

Top 10 Worldwide Software Vendors, Worldwide, 2012-2013 (Billions of Dollars) 

Rank 2013

Rank 2012

Vendor

2013 Revenue

2012Revenue

2012-2013Growth Rate (%)

1

1

Microsoft

65.7

62.0

6.0

2

3

Oracle

29.6

28.7

3.4

3

2

IBM

29.1

28.7

1.4

4

4

SAP

18.5

16.9

9.5

5

5

Symantec

6.4

6.4

-0.8

6

6

EMC

5.6

5.4

4.9

7

7

HP

4.9

5.0

-2.7

8

9

VMware

4.8

4.2

14.1

9

8

CA Technologies

4.2

4.3

-2.6

10

12

Salesforce.com

3.8

2.9

33.3

 

 

Others

234.6

224.0

4.7

 

 

Total

407.3

388.5

4.8

Source: Gartner (March 2014)





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