From Xero to Hero – Disruption in the New Zealand ERP market
18 Jun 2015
Auckland, New Zealand, 17. June 2015.
According to IDC’s Asia Pacific Semi-annual Software Tracker (2H 214), the New Zealand software market grew by 6.5% YoY in 2014, close to IDC’s predicted 6.6% forecast from mid 2014. Continuing this trend, the market is set to grow by a five year compound annual growth rate (CAGR) of 6.5% to reach NZ$1,791M in 2019.
The enterprise resource planning (ERP) market was the major growth engine for the New Zealand software market in 2014. Mainly driven by cloud solutions, the Financial Application and Human Capital Management market (HCM) grew by 29.8% and 25.9% respectively in 2H14. Although only offering Financial Application software in New Zealand, Xero managed to take the top spot in this sub-market segment and continuous to challenge the traditional vendors in the broader ERP market in terms of market share.
“The local ERP market has been widely disrupted by Xero, which is driving most of the growth in the local ERP market. Although Xero has only offered Financial Applications in New Zealand so far, it is rapidly climbing to the top of the New Zeeland ERP market. It will be interesting to watch what is going to happened in 2015 when Xero starts offering Payroll Applications and Inventory functionalities in NZ.” says Melanie Disse, Assoc. Market Analyst for ANZ Software & Analytics.
The Financial Applications market also shows the highest 5-year-CAGR within the ERP market in New Zealand. With a 5-year CAGR of 10.0%, the Financial Applications market will remain the largest sub-market within the ERP market, larger than the rest of the ERP sub-markets combined.
Growth also occurred in the Application Development & Deployment (AD&D) Software market, which grew by 3.1% YoY in 2014 driven mainly by Big Data & Analytics technologies. This in turn fuelled the Data Access, Analysis and Delivery (DAAD) and Structured Data Management Software (SDMS) markets with 5.4% and 5.2% YoY growth respectively. Within the Infrastructure Software market, growth was mainly driven by the Storage and System Management Software markets, 11.4% and 8.9% respectively in 2H14.
This media release relates to the New Zealand Software Tracker 2H14.
Application development services, Big Data analytics and discovery, Data access, analysis and delivery, Financial resource management, Software as a service, Storage software, Structured data management software, System and network management software
ContactFor more information, contact:
Alison Te Hira
+61 2 9925 2258