IDC Finds Mobility and Cloud Computing to be Key Drivers in APEJ Middleware Market
18 Dec 2012
Singapore and Hong Kong, December 18, 2012 – The Application Deployment Software (ADS) market in the Asia/Pacific excluding Japan (APEJ) region grew 8% year-on-year to US$641 million in the first half of 2012. It is expected to achieve a compound annual growth rate of 7.6% over the next five years (2012 - 2016), according to the latest IDC Asia/Pacific Semiannual Application Deployment Software Tracker.
"Inevitably, the weakening economies in the United States and Europe have impacted the APEJ region, with companies heavily dependent on export businesses the worst hit among all. Various economic statistics have also indicated signs of slowdown in the key growth engines of the region – China and India," says Chris Zhang, Senior Market Analyst for IDC’s Asia/Pacific Application Deployment Software Research.
Generally, most of the companies are taking a more conservative approach in their technology investments while some others are going the opposite direction, pumping in more dollars to stay ahead of the pack and be ready in full gear when the economy resumes. "This is clearly a 'fight or flight' situation, depending on how organizations view the current situation – whether opportunistic or negative." Chris adds. For instance, IDC observes that despite challenging times, some manufacturers continue to invest in Managed File Transfer (MFT) and B2B integration solutions to enhance collaboration and communication capabilities among supply chain members. Business Process Management Software (BPMS) is also another hot area where organizations across all industries see as strategic investment that helps to optimize business processes and stay agile in volatile market conditions. In fact, middleware solutions are often considered by many companies as the backbones and enablers of an agile organization.
On the technology front, IDC finds the increasing adoption of mobility and cloud computing have stimulated the demand for mobile application platforms, integration and messaging solutions, and cloud-enabling middleware or appliances. Security remains as one of the top concerns as organizations find themselves operating in increasingly complex IT environments. "The ability to centrally manage and to provision applications in a secured manner on disparate platforms will be critical here," Chris further highlights.
Key points from the study include:
1. Growth projections for the middleware market in this region in 2013 remains positive, albeit key growth engines in the region have begun to display signs of economic slowdown. The PRC, Australia, India and Korea remain the key economies in terms of market size, with varying priorities in IT investments.
- ASEAN countries such as Indonesia, Thailand and Malaysia are expected to have higher growth potential over the forecast period.
3. The growth of the PaaS market will cannibalize some of the sales from traditional revenue model, but is not expected to create a large impact as it opens doors for new, untapped markets (i.e. SMBs).
1. Countries included in IDC Asia/Pacific Semiannual Application Deployment Software Tracker are Australia, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, the PRC, Singapore, Taiwan, Thailand, Vietnam and the Rest of Asia Pacific.
2. Software revenue consists of license, maintenance, and other software revenue.
3. Application Deployment Software includes Application Server Middleware and Integration & Process Automation Middleware.
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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.
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