Ovum predicts an ongoing recovery within the Australia/New Zealand software market. In its latest report entitled “ANZ Market Trends 2009: IT software forecast”, the analyst firm says the ANZ market will show growth of above 4.8 percent in 2010.
Even with such a relatively positive forecast, the market will not see pre-recession growth levels until the end of 2012 at the earliest. By the end of the forecast period in 2013, the market is expected to grow to more than $5.6 billion.
“The ANZ software market did not suffer a huge drop off in growth during the financial crisis period and these ongoing revenue streams have enabled the major players to be well-positioned for the predicted upturn”, says Jens Butler, Ovum principal analyst.
In a press statement, Ovum points out the ANZ market contributes 2 to 5 percent of most global software organisations’ revenues, but the region is often used as a test bed for enhancements to products and offerings across the partner ecosystem.
“ANZ is currently leading the pack in terms of economic performance and will see further influx of investment going forward, but not reaching pre-recession growth levels before 2012,” notes Butler.
While the economic slowdown had impacted the software market in ANZ, the effect was subdued compared to other regions because a large proportion of revenues were locked into multi-year deals, reports Ovum. The sector has also rebounded with investments in key verticals.
“Systems infrastructure software will see growth on the back of hardware refresh and Windows 7 uptake/replacement programmes, and information management demand will continue to grow exponentially,” notes Butler in the press statement.
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