6 trends that will impact global spend on enterprise application software

BANGALORE, INDIA: Worldwide spending on enterprise application software will grow 7.5pc to reach $149.9 billion in 2015, increasing to more than $201 billion in 2019, according to Gartner.

Analysts said that long-term growth in spending will be driven primarily by modernization, functional expansion and digital transformation projects.

The sub-segments showing the highest growth during the forecast period of 2014 through 2019 will be marketing, e-commerce and advanced analytics software.

Gartner has identified six key trends that will impact global spends in application software market in 2015.

Modernization of core enterprise applications

Forty five percent respondents with knowledge of their organization's software strategy indicated that one of the current top five IT project priorities is application modernization of installed on-premises core enterprise applications and a further 41 percent indicated that extending capabilities of core enterprise applications, is a top five priority.

Transitioning to new consumption models

As subscription-based alternatives and particularly software as a service (SaaS) are being adopted by organizations, a more predictable revenue pattern will emerge.

The rise of digital-business

Competing successfully in the digital industrial economy is rapidly becoming a leading strategic imperative for businesses all around the world. This shift in business priority and focus brings a new perspective regarding applications.

Organizations will extend or replace HCM with SaaS

Gartner predicts that by 2019, approximately 28 percent of installed human capital management systems globally will be SaaS-based, up from 13 percent in 2014.

Reaching the cloud office

According to Gartner during 2015, 15 percent of business users would be provisioned in whole or in part, with office system capabilities from the cloud. The research firm expects this percentage to grow to around 60 percent by 2020.

Advanced analytics adoption to grow

Gartner predicts that by 2020, more than 75 percent of organizations will deploy advanced analytics as part of a platform or analytics application to improve business decision-making.