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APEJ enterprise applications software market to grow 15 per cent in 2010: IDC

Anuradha Shukla | May 31, 2010
Manufacturing sector was the largest adopter of enterprise applications in 2009

SINGAPORE, 31 MAY 2010 The enterprise applications software market in the Asia Pacific excluding Japan (APEJ) region is expected to grow by 15.4 per cent in 2010, according to IDC.

IDC provides market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. The research firm says the enterprise applications market returned to positive growth in the second half of 2009, and experienced a two per cent decline in 2009 compared to 2008.

Application adoption transformation

According to IDCs Asia/Pacific Semiannual Enterprise Applications Tracker, manufacturing was the largest adopter of enterprise applications in 2009. Manufacturing was closely followed by banking, FSI and telecommunications, as well as niche verticals like mining, food and beverage.

Praveen Sengar, research manager of IDCs Asia/Pacific Enterprise Application Software, Domain Research Group, noted that the recent global recession resulted in the transformation of application adoption and delivery models.

Enterprises were thus encouraged to look at newer engagement models but were still selective on IT projects. Senger added that project cost and return on investment were their key decision-making factors.

Focus on cloud computing

In 2009, the largest share of the APEJ enterprise applications software market was formed by Australia, India and China. According to IDC, these three nations contributed to 70 per cent of this market. This year, the research firm expects a stronger recovery in India, Singapore, Indonesia, Thailand, Malaysia and China.

Cloud computing is becoming popular all across the world and IDC expects it to be a key focus area in 2010.

Vendors emphasised multiple pricing and delivery models, pre-packaged vertical specific templates, and pre-integrated application stacks to reduce the initial investment and implementation time, said Senger. Vendors focus on aligning with partners that have specific vertical industry expertise and seek to sign new partners for delivering private cloud services.


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