27 Jun 2017
SINGAPORE, June 28th, 2017 – Asia Pacific excluding Japan (APeJ) software market grew 6.3% year over year (YoY) during the second half of 2016 to reach $18.9 billion, according to the latest IDC APeJ Semiannual Software Tracker. This is a strong contrast to previous periods where the software market has remained relatively flat (0.1% decline in second half of 2015).
On-premise software sales grew 3.5% YoY, while software revenue from public cloud services grew 34.5%. As a share of total software, public cloud services went from 9.0% of software in 2H15 to 11.4% in 2H16.
"Despite softening of the economy, it did not deter APeJ organizations from investing in software. It is an encouraging sign that organizations are beginning to recognize software as a key enabler in their digital transformation initiatives. There has also been a wider acceptance for public cloud services and open source technology (i.e. microservices, Hadoop, Kubernates, TensorFlow) even for mission-critical workloads as concerns around data sovereignty, security, portability and most importantly, skillsets, are being addressed by the vendors. Due to the pivotal role that software has in organizations today, we also expect markets related to agile software development and DevOps to gain significant traction over the next years," says Chris Zhang, Research Manager, IDC Asia/Pacific's Software Research.
Some key highlights include:
"What customers are increasingly demanding for is freedom of choice when it comes to mode of deployment and pattern of consumption. APeJ organizations tend to operate in hybrid environment, hence the portability of workloads between on-premises, public cloud, private cloud and even multi-clouds will be one important assessment criteria. Vendors will also have to incorporate some degree of flexibility in their licensing contracts and even work with other vendors to help their customers achieve a true hybrid vision," Zhang added.
IDC APeJ Semiannual Software Tracker provides unmatched market coverage and forecasts for the entire packaged software space, covering 81 distinct functional software markets and over 900 vendors in more than 13 countries in the region — providing fast, essential, and comprehensive market information.
For inquiries on this tracker research, please contact Chris Zhang firstname.lastname@example.org or your IDC account manager. For media inquiries, please contact Tessa Rago email@example.com or Alvin Afuang firstname.lastname@example.org.
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