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23 Oct 2018

Middle East & North Africa Enterprise Application Software Market Poised for Robust Growth as Cloud Adoption Accelerates

Dubai – Spending on enterprise application software (EAS) in the Middle East and North Africa is set to reach $774.62 million this year, reflecting year-on-year growth of 6.3%. That’s according to the latest forecast from International Data Corporation (IDC), with the global technology research and consulting firm's newly released report, ‘Middle East and North Africa EAS Market 2018–2022 Forecast and 2017 Vendor Shares’, tipping the market to grow at a compound annual growth rate (CAGR) of 6.1% over the 2018–2022 period.

The Gulf countries, particularly Saudi Arabia and UAE, continue to dominate spending in the market as they push ahead with their countrywide digital transformation initiatives. Shrinking budgets are forcing organizations across the region to shift from capex to opex business models, and this shift has spurred an increase in the adoption of cloud-based EAS solutions over the last couple of years, a trend that is set to accelerate over the coming years.

"The market has responded positively to ongoing national development plans and the continuous investments of EAS vendors across the region, with cloud-based EAS solutions gaining considerable traction in 2017," says Manish Ranjan, IDC’s program manager for software in the Middle East, Turkey, and Africa. " We are also seeing greater demand for intelligent ERP (i-ERP) solutions that come with embedded analytics and AI functionalities. Given the plethora of digital transformation initiatives underway across the region, the market for cloud-based EAS solutions will continue to expand in MENA, with government, transportation, healthcare, and utilities set to be among the fastest growing verticals in terms of EAS investments through 2022."

IDC’s research shows that the overall MENA EAS market reached a value of $728.70 million in 2017, representing year-on-year growth of 6.3%. SAP was once again the market leader in 2017, followed by Oracle in second place and Microsoft in third. Together, these three vendors accounted for a combined market share of 82.0%.

"Datacenter investments in the region continue to grow as vendors prepare themselves to address growing cloud demand and the spread of digital transformation initiatives," explains Ranjan. "Both tier 1 and tier 2 vendors will continue to push cloud-based applications with embedded analytics and AI functionality in the market, and this will help cloud-based EAS solutions grow at a much faster rate than traditional on-premise solutions."

IDC's ‘Middle East and North Africa EAS Market 2018–2022 Forecast and 2017 Vendor Shares’ (IDC #CEMA44317818) study provides a detailed overview of the MENA market for integrated EAS suites. The EAS vendors tracked in this study include SAP, Oracle, Microsoft, Sage, Infor, Focus Softnet, Epicor, 3i Infotech, Applied Computer Services (HASIB), QAD, Involys, IFS, Ramco, and Caciopee.

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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. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC

IDC in the Middle East, Africa, and Turkey

For the Middle East, Africa, and Turkey region, IDC retains a coordinated network of offices in Riyadh, Nairobi, Lagos, Johannesburg, Cairo, and Istanbul, with a regional center in Dubai. Our coverage couples local insight with an international perspective to provide a comprehensive understanding of markets in these dynamic regions. Our market intelligence services are unparalleled in depth, consistency, scope, and accuracy. IDC Middle East, Africa, and Turkey currently fields over 130 analysts, consultants, and conference associates across the region. To learn more about IDC MEA, please visit www.idc-cema.com. You can follow IDC MEA on Twitter at @IDCMEA.

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