Enterprise Software Demand to Weaken

Everybody will be cutting costs, but there will be some bright spots.


How to Help Your Business Become an AI Early Adopter


The recession and companies' consequent belt-tightening will see worldwide demand for enterprise software grow more slowly than expected, by 6.6 percent next year to total $244.3 billion, research firm Gartner said.

That is nearly one-third less than Gartner's previous 2009 projection of $253.1 billion, or 9.5 percent growth from 2008's expected figure of $229.2 billion.

The recession will lead to a major shift in companies' IT plans. "The business case for many application and infrastructure initiatives is aligning to cost reduction and risk management as opposed to fostering revenue growth," Fabrizio Biscotti, research director at Gartner, said in a statement.

Mobile computing, service oriented architecture (SOA), Web services, operating systems, and office suites will be clobbered, but money saving technologies such as virtualization and open source software will gain strength as enterprises pinch pennies.

The realignment of IT strategies, combined with the recession, means enterprise software vendors will not see any relief soon, with the fourth quarter of 2008 kicking off a bad streak for enterprise software vendors that will run through to 2012, Gartner said.

In general, Gartner's predictions dovetail with those of research firm IDC, made last week.

Enterprises will reduce their use of mobile devices, including laptops, according to Gartner. This runs counter to the prevailing view, which is that employees will increasingly encourage teleworking, which will see more workers using mobile devices, including laptops, to work from home instead of going to the office, in order to cut costs. P>

SOA, we hardly knew ye

Another area that will be impacted is SOA, in which vendors have invested heavily. Once seen as a way to leverage data locked in back-end corporate databases, break silos of information and leverage application development in the enterprise through code reuse, SOA is losing its luster because of the recession.

SOA projects will be canceled or delayed in the short term, and will be slow to recover over the long term, Gartner said. In this prediction, Gartner is not alone. The slowdown in SOA projects was also noted separately by Evans Research in a survey of application developers.

Packaged applications such as customer relationship (CRM), enterprise content management (ECM), enterprise resource planning (ERP) and supply chain management (SCM) will also be affected by the slowdown in SOA and a related technology, Web services, Gartner said.

This article was first published on InternetNews.com. To read the full article, click here.

Tags: open source, SOA, services, virtualization, SaaS

0 Comments (click to add your comment)
Comment and Contribute


(Maximum characters: 1200). You have characters left.



IT Management Daily
Don't miss an article. Subscribe to our newsletter below.

By submitting your information, you agree that datamation.com may send you Datamation offers via email, phone and text message, as well as email offers about other products and services that Datamation believes may be of interest to you. Datamation will process your information in accordance with the Quinstreet Privacy Policy.