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11 predictions for enterprise software in 2013

Chris Kanaracus | Dec. 18, 2012
The end of each year sparks an occasion for rumination on the past, as well as a longing gaze into the future. We shined up our crystal ball, rubbed our chin for a while, and sought opinions from industry analysts on what the future holds for the enterprise software market.

Although HP shareholders may shudder at the thought of the company shelling out yet more billions, CEO Meg Whitman may push for another big acquisition as part of her turnaround plan.

Along with the search and data management software from Autonomy, HP also has a powerful database in the form of Vertica. Missing components in its lineup seem to be middleware and business applications, so if a deal does occur, watch those spaces. 

Economic turmoil on tap: There's likely to be an economic recession in the U.S. in 2013, resulting in a significant pullback in IT spending, particularly on new purchases and investments, according to analyst Frank Scavo, president of the IT research firm Computer Economics.

This will "impact the traditional enterprise software vendors in a greater way than they realize," Scavo said. "Upgrade projects for traditional on-premises enterprise systems will be cancelled or delayed. The third-party maintenance business will prosper as customers look for ways to cut support costs. This will put pressure on traditional vendors to cut maintenance rates, which they have been resisting. This in turn will pressure their operating margins."

While cloud-based vendors will suffer less, they'll still see some deals take longer to close, Scavo said. 

Don't believe anything you've just read: "Very few people see really new trends before they start," Scavo said. "I agree with Bill Gates, who said, 'We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next 10.'" 

  

 

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