Worldwide software revenues totaled US$407.3 billion in 2013, a 4.8% increase from 2012 revenues of US$388.5 billion, according to Gartner.
The software industry is in the middle of a multi-year cyclical transition as organizations are focusing investment on technologies to support existing system structure in order to maintain competitiveness, while still taking advantage of cloud/subscription-based pricing where it makes sense to grow and advance the business, the firm said.
"There is a shift in vendor rankings from 2013 at the top of the worldwide software market," said Chad Eschinger, research VP at Gartner. "This is the first time in Gartner's global software market share research that Oracle has ranked second in terms of total software revenues with US$29.6 billion and capturing 7.3% of the global market. Global trends around big data and analytics with business investment in database and cloud-based applications helped to drive Oracle's top-line growth."
"The software market has been changing shape over the past five years, and cloud is driving the bulk of this change as software vendors acquire and provide applications and infrastructure technology to support the cloud and the Internet of Things (IoT) movement," said Joanne Correia, research VP at Gartner. "A clear indicator of this is that for the first time we have a pure cloud vendor in the top 10."
Salesforce.com, with more than US$3.8 billion in revenues during 2013, climbed two positions to capture the number 10 slot of the worldwide enterprise software market, and it achieved the highest growth among the top 10 vendors at 33.3%, said Gartner, adding that Salesforce.com has also moved into the top five for overall application revenues.
"Investors continue to focus on revenue growth and market share gains as the primary criteria when evaluating vendors," said John Rizzuto, research VP at Gartner. "At this point, the new and emerging technology markets in software, such as digital marketing and public cloud computing, are so nascent that investors are favoring those companies that are early and aggressive in grabbing both market and mind share – in many cases dismissing progress on earnings and cash flow in hopes that they will one day follow."
