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Croation Enterprise apps mkt stirs up to $55 mn next

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CIOL Bureau
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ZAGREB, CROATIA: The Croatian enterprise application software (EAS) market, after stagnation in 2007, recovered in 2008, reaching $45.52 million for 27.3 per cent growth in U.S. dollars. In local currency, Croatia's EAS market increased 17.2 per cent year on year in 2008. According to a recent IDC study, the main drivers included the expanding economy and a few high-profile implementations.

IDC expects that Croatia's EAS market will expand an average of 4.2 per cent annually over the next five years, to reach $55.8 million in 2013.

"Although Croatia's EAS market recovered in 2008, it will not bypass the crisis," said Karlo Pernek, research analyst, IDC Adriatics. "The crisis will hit all market segments hard, with somewhat milder impact on the telecommunications, finance, and government sectors. Vendors will have to take a new approach to customers. Standard marketing works well under normal economic conditions, which these are not. Vendors need to educate clients that EAS is not a cost but a cost cutter."

Enterprise resource management (ERM) remained the most popular functional area of EAS in 2008, accounting for 67.9 per cent of total revenue. Supply chain management was second in demand, constituting 12.2 per cent of the market, while operations and manufacturing modules were third, with a 10.7 per cent share.

2008 proved extremely successful for international EAS vendors on Croatia's market, in some cases with high double-digit revenue growth. SAP retained its lead, with 25.2 per cent market share, followed by Microsoft, with 11.2 per cent of the market, as per a press release.

EAS spending by vertical markets witnessed only minor changes in 2008. The retail sector remained the top spender, accounting for 21.0 per cent of total EAS spending. Process manufacturing was second, followed by wholesale.