The recently published infrastructure software forecast, Software Market Forecasts and Vendor Rankings: Infrastructure Software, 2014–19, indicates a strong momentum in global infrastructure software spend, with a compound annual growth rate (CAGR) of 7.9% for the period 2014–19. Infrastructure software will remain the largest enterprise software market segment, with global spend expected to increase from $209bn in 2015 to $282bn by the end of 2019.
Fastest growth focused in software-defined solutions, virtualization, and integration, and in Asia-Pacific
We have added software-defined solutions (SDx) as a new market segment, which comprises spend on software-defined storage (SDS) and software-defined networking (SDN). This market segment is expected to grow at a CAGR of 43.8% over the period 2014–19, amounting to $12.7bn in 2019. In comparison, the traditional storage systems and management market will grow at a CAGR of 3.6% over the forecast period. Moreover, hybrid cloud and network management spend is forecasted to grow at a CAGR of 4.3% over this period.
Global virtualization spend is expected to grow at a CAGR of 11.5% over the forecast period, amounting to $29.8bn by the end of 2019. Integration accounts for the third fastest-growing market segment, with global spend on integration software/middleware expected to hit $22.8bn by the end of 2019. Integration is estimated to account for over 7.8% of the total infrastructure software spend in 2019.
We forecast infrastructure software spend in North America to grow from $97.5bn in 2015 to over $130bn by the end of 2019. North America will account for over 46% of the global spend on infrastructure software in 2019. Ovum estimates indicate that Asia-Pacific will be the fastest-growing regional market, with infrastructure software spend growing at a CAGR of 8.6% to hit $55bn by 2019. Over the same period, spending on infrastructure software in Central and Latin America and EMEA regions will grow at CAGRs of 8.0% and 7.5%, respectively.
The forecast figures reveal that more than a half of the market segments under infrastructure software will grow at a CAGR of over 7%. In this context, it is worth noting that global spend on application platforms and database infrastructure and management is expected to grow at CAGRs of 7.7% and 7.9%, respectively. For 2015, operating systems will account for over 26% of the total infrastructure software spend and this figure will decrease by just 1% over the forecast period.
The top three vendors in terms of market share accounted for over a third of the global infrastructure software spend in 2014. The figure reduced to just 6.2% for the next three vendors in the list. The top 10 vendors accounted for over 43% of the global infrastructure software spend in 2014. This includes major enterprise software vendors, such as Microsoft, IBM, Oracle, CA Technologies, HP, and SAP.
Software Market Forecasts and Vendor Rankings: Infrastructure Software, 2014–19, EI0025-000017 (September 2015)
Saurabh Sharma, Senior Analyst, Infrastructure Solutions