Gartner: ANZ AD software market to grow 6.7 percent

Gartner: ANZ AD software market to grow 6.7 percent

Security testing driving growth says analyst firm.

Application development (AD) software revenue in Australia and New Zealand is expected to reach A$160.4 million (NZ$189.2 million), an increase of 6.7 percent from 2009 revenue of A$173.3 million (NZ$204.1 million) according to Gartner. Worldwide growth is expected to rise 0.7 percent. Gartner principal research analyst Asheesh Raina says there is some pent up demand for AD products in the region. “One of the main reasons for solid growth is the relative insulation from the worldwide economic recession, as well as sustained domestic consumption. Many markets across the globe continue to be in decline.” According to Raina, ANZ is an area of spending growth and an attractive research and development centre for software vendors because of its rich demographics. “Apart from growth opportunities, it also offers vendors long-term stability and the highest forecast compound annual growth rate for AD software for the five year period to 2013,” he says. The ongoing need to invest in security testing is one of the top drivers for the application development market. “Despite the restrictions imposed on AD spending due to the worldwide economic downturn, this segment grew fastest in 2009 as security breaches continued to highlight the need for good testing, making up for some of a lack of spending on more mature and less dynamic tools,” he says. In 2009 AD market share results for ANZ, IBM held the share of 26.3 percent. This performance was helped by acquisitions such as Watchfire which provided growth in the security testing market. HP held share of 15.3 percent while Microsoft had 13.4 percent. Raina says HP’s share of the market remained fairly constant, whereas Microsoft’s market share grew slightly due to the company's preannouncement of Visual Studio 2010. This meant that many companies decided to postpone any upgrades and wait for the new version.

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