Singapore and Hong Kong, July 17, 2012 – With the enterprise applications (EA) software market undergoing a major transformation with the advent of technology trends like SaaS, socialytics, mobility, and to some extent from big data, this space has presented an array of opportunities together with a number of new challenges to the EA vendors. IDC expects these technology trends and the increased interest in customers for enterprise software to drive growth. However, any growth may still be stunted by the negative economic sentiments prevailing in the region. As per the latest IDC Asia/Pacific Semiannual Enterprise Applications Tracker, the EA market revived slowly but still surpassed forecasts and reached a 9.8% growth year-on-year (YoY) in the Asia/Pacific excluding Japan (APEJ) region in 2011. The EA market is expected to grow at a compound annual growth rate (CAGR) of 9.5% to reach US$8.6 billion till 2016.

“Although the economy hasn't revived completely, it has been showing some optimistic signs; uncertainties and risks continue to propel the usage of enterprise software to reduce cost, improve productivity and efficiency, and mitigate risk,” says Sabharinath Bala, Research Manager of IDC’s Asia/Pacific Enterprise Applications Software Research.

Key points from the study include:

• SAP, Oracle, UFIDA, Infor, and Microsoft roundup the top 5 vendors by market share and hold almost half of the overall EA market.
• SAP and Oracle have a dominant presence across the overall secondary markets, but vendors like Salesforce.com, Bokesoft, and JDA Software have a strong play in their respective secondary market areas like customer relationship management (CRM) market and product supply chain (PSC) market.
• Although vendors have done well to create awareness about SaaS deployment of enterprise software, there hasn't been much traction except for the mature economies.
• Acquisitions were rampant in the EA space, as some the major vendors wanted to add technology and delivery capabilities to their existing portfolio. Some of these acquisitions have already started delivering value, but a few of them are yet to be completely amalgamated and brought to the market.

At the secondary market level, CRM market saw a minor increase in percentage share in 2011 and stood at 23.3% as compared to 22.7% in 2010, while there was a slight decline for PSC applications; enterprise resource management (ERM) market also witnessed a slight increase from 2010. Sales among the CRM functional markets, and human capital management and financial accounting applications among the ERM functional markets posted the largest growth in 2011.

Figure 1

Notes:

1. Countries covered in IDC's Asia/Pacific Semiannual Enterprise Applications Tracker include Australia, New Zealand, Korea, India, the PRC, Taiwan, Hong Kong, Singapore, Malaysia, and Thailand.
2. Software revenue consists of license, maintenance, and other software revenue.
3. Enterprise applications include enterprise resource management, customer relationship management, product supply chain management.
4. All revenues reported here are in 2H 2011 constant US$

For more information about the research or to purchase this data, please contact Sheryl Fuertez at +65-6829-7758 or sfuertez@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

Contact