MELBOURNE, AUSTRALIA: The Australia and New Zealand (ANZ) business software market will hit $7.3 billion in 2015, driven by impressive growth across all software categories, predicts Ovum.
In a new report, the independent technology analyst company finds that the business software market is expected to experience a CAGR of 8.4 per cent by the end of the forecast period, mainly attributed to increasing demand for business intelligence, business process management, and enterprise resource planning solutions.
Ovum technology analyst Sandeep Mishra commented: “ANZ has been among the front runners in technology adoption in Asia-Pacific (AP). Against a backdrop of slowdown in economic growth, enterprises are following a cautiously optimistic approach to investment in business software. With increasing data complexity and rising security concerns brought about by the growing number of IT platforms, enterprises across ANZ are expected to invest more in information management and security solutions.”
According to Mishra, ANZ is the second-largest business software market in AP after Japan and offers a great deal of opportunities for vendors operating in the region. Therefore, software vendors should look to increase their revenues by targeting the small to medium-sized enterprise segment through channel partners and online sales.
From a category perspective, resolving data complexity and data security issues will be the top priority for enterprises, and Ovum expects the information management and security software markets to increase at CAGRs of 11.4 percent and 10 percent, respectively.
The market growth will also be driven by cost control and increasing demand for emerging technologies.
Mishra added, “Demand for technologies that offer better analytical capabilities and increase mobility factor for users, as well as cost control initiatives laid out by enterprises, are expected to drive growth in ANZ during the next few years.“
Several key indicators will be applied during the forecast period, with cost control and efficiency as the major drivers in enterprise software buying decisions across all sectors in the region.
Mishra concluded: “On-demand solutions are expected to prove cost effective for businesses to manage their entire operations. ANZ is one of the largest markets for SaaS-based solutions in Asia-Pacific, and expected to grow faster than the market for on-premise solutions.”