Feeds

US software sales start picking up

Hint of an upturn

  • alert
  • submit to reddit

Boost IT visibility and business value

Encouraging signs for software sales
Monday 1st September 2003

Times have been bad for many businesses recently, but the enterprise software sector has been especially hard hit, writes Fran Howarth of Bloor Research.

A large part of the reason why the sector has fared worse than might have been expected is that so many companies have had bad experiences implementing technology such as enterprise resource planning systems. Other business applications implementations have also caught out companies - not only is this technology complicated to implement, but integration and customisation needs add greatly to the time and cost involved in a project.

As a result, enterprise application vendors have closed fewer sales; these sales have taken longer to close than previously and are smaller generally than deals of recent years. Companies have reacted to the downturn and to the problem of runaway projects by choosing to implement point solutions for areas of particular pain, rather than trying to fix everything in one go.

But signs from the US may show the tide is turning. People have tried to predict the long-overdue economic uptick for some time, but their hopes were dashed time and time again. The first signs of economic recovery came with the second quarter results of this year. Companies from banks to pharmaceutical concerns are coming out of the woodwork with better results - some even showing a return to profit. Even some of the software vendors have shown an improved performance, including SAP and PeopleSoft, although some industry watchers are wondering whether they can repeat their "rabbit out of a hat" second-quarter performance.

According to the US Commerce Department, the US' GDP grew at 3.1% in the second quarter of this year, compared to an earlier performance expectation of 2.4%. For the whole of 2003, the International Monetary Fund expects growth to accelerate in the second half of the year, with growth of 3.5% in 2004. This contrasts with growth rates of 0.3% in 2001 and 2.4% for 2002.

But the largest surprise contained in the figures is that the overall growth rate has been boosted by an 8.2% rise in sales of equipment and software. This is the fastest that such spending has risen for approximately three years, according to the Financial Times. While a return to the previous stellar rates of growth may be some way off and may never happen, perhaps the end is at least in sight.

© IT-Analysis.com

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.