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Monday, November 11, 2013

Enterprise Application Software Sales in South Africa is driven by CRM, Mobility, and Social Business

According to IDC Research, Overall enterprise applications software (EAS) spending in South Africa is set to increase 10.5% year on year in 2014 to total $518.45 million. 

With a further 12 months likely to pass before the new government is fully focused on its investment plans, improved growth is not anticipated for the country's EAS market until 2016. Other factors that will negatively impact the EAS market in 2014 include ongoing economic pressures that are likely to derail the investment plans of large and very large businesses (enterprises). Continuing financial challenges will also limit the access of small and medium-sized businesses (SMBs) to credit and curtail their subsequent investments, while the ongoing challenge of skills shortages will impair the adoption of new technologies.

South African organizations are interested in adopting technologies such as advanced analytics, but are often limited by tight budgets and lack of advanced technical skills.

Organizations in south Africa will increase their investment in the following arenas:
 
  • CRM
  • Mobility
  • Social Business 
  • Other communication tools
Business intelligence and analytics is high and demand will continue to grow and requirement for performance monitoring solutions is also on high demand.

Spending on enterprise applications software in South Africa to expand at a compound annual growth rate (CAGR) of 11.6% across the five-year forecast period to total $787.19 million in 2017 is expected.

Banking, government, and telecommunications entities set to be the biggest EAS spenders throughout the five-year forecast period.

Top 5 Vendors in South African Enterprise Applications Software Market 2012

Top five vendors together accounted for 94.8% of total license and maintenance (L&M) revenues in 2012.

  1. SAP - 48%
  2. Oracle - 20%
  3. Sage - 18 %
  4. Microsoft Dynamics - 5.3%
  5. Syspro - 3.5%
Enterprise resource management (ERM) continued to dominate EAS vendor sales in the South African market with 66.1% share of EAS revenue, although business analytics (BA) and CRM tools were also in high demand, with shares of 14.7% and 9.9%, respectively.



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