Feeds

Software market will double between 2003 and 2010, says expert

Strong, but not silly

The essential guide to IT transformation

The market for large enterprise software is set to grow at up to nine per cent a year until 2010, but the software support service will suffer a slump in growth, according to market research company Ovum.

Ovum's David Mitchell told technology law podcast OUT-LAW Radio that in certain sectors the technology market would enjoy massive growth, but in others growth would slow to effectively zero.

"By the end of this decade we'll be talking about a £6.44bn market for software in the UK, a really substantial market," he said. "Compared to 2003 you're getting close to a doubling of the market size in seven years."

Mitchell was delivering a technology forecast based on Ovum research, and said large industrial-scale software such as that produced by SAP or Oracle was the business to be in.

"In terms of some of the key growth areas within software, the business applications area is going to stay growing, that's going to make approximately nine per cent growth all the way through to 2010," he said.

"Some of the areas that are growing less are the support services market. That's growing at about three per cent per annum through to the end of the decade; that's relatively flat. If you subtract inflation from those figures, that's a relatively static market," said Mitchell. Companies in that business should be thinking about producing products and producing and licensing intellectual property, he said.

Mitchell was critical of the current fashion for convergence which sees IT firms, telecoms companies and software houses all offering each others' products and services. This would not, he predicted, be a strategy that is likely to meet with significant success. "The people for me who are doing best are those who stick to their knitting and do what they're good at," he said.

"I'm counting convergence as one of those things that is a lot talked about, there's a lot of money being spent on it, but it's not one that I personally think that is one of the huge ones to watch for a lot of money to be made out of it."

Mitchell was confident that social networking sites, currently the darlings of the investment community, would be able to earn out the large sums being invested in them. "I think some of these could prove not to be overpaid, but they'll need very careful engineering to ensure that the benefits come out," he said. "It does have some of the uncertainty of the late '90s but I don't think it has got some of the silliness of the late '90s yet."

See: OUT-LAW Radio

Copyright © 2006, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

Secure remote control for conventional and virtual desktops

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
China: You, Microsoft. Office-Windows 'compatibility'. You have 20 days to explain
Told to cough up more details as antitrust probe goes deeper
Windows 7 settles as Windows XP use finally starts to slip … a bit
And at the back of the field, Windows 8.1 is sprinting away from Windows 8
Linux turns 23 and Linus Torvalds celebrates as only he can
No, not with swearing, but by controlling the release cycle
Scratched PC-dispatch patch patched, hatched in batch rematch
Windows security update fixed after triggering blue screens (and screams) of death
This is how I set about making a fortune with my own startup
Would you leave your well-paid job to chase your dream?
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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?