Worldwide Software Forecast Summary

Transcription

1 MARKET ANALYSIS Worldwide Software Forecast Summary Patrick Melgarejo IDC OPINION Global Headquarters: 5 Speen Street Framingham, MA USA P F The software marketplace continued growing even stronger in 2011 compared with 2010, since the financial downturn in 2008/2009. Worldwide packaged software revenue grew by 9.8% in Although 2012 is expected to show a market deceleration mainly impacted by Western Europe forecast performance, IDC is optimistic for the future as emerging regions (Asia/Pacific excluding Japan, CEMA, and Latin America) are expected to perform double-digit compound annual growth rate (CAGR) from 2011 to IDC believes that: 2011 was another uphill year not an indicator of future steady-state growth is projected to grow at a slower rate than The recovery will continue at mid-single-digit growth levels throughout the forecast period ( ). The software marketplace continues to undergo significant change, with opportunities (and challenges) in the areas of digital commerce, cloud utilization, platform as a service, Big Data, and consumerization, to name a few. Filing Information: June 2012, IDC #235326, Volume: 1, Tab: Markets Software Overview: Market Analysis

2 TABLE OF CONTENTS In This Study 1 Methodology... 1 Primary Markets Covered... 1 Vendor and Market Segmentation... 1 Geographic Regions... 1 Operating Environments... 2 Software Market Taxonomy... 2 Executive Summary... 2 The Packaged Software Market in Worldwide Software Market Drivers, Situation Overview 8 Worldwide Software Market Performance in Worldwide Performance in 2011 by Primary Market... 8 Application Development and Deployment... 8 Applications... 9 System Infrastructure Software... 9 Performance of Leading Vendors in Top 50 Vendors' s of the Worldwide Software Market by Operating Environment Future Outlook 131 Forecast and Assumptions Forecast for the Worldwide Software Market Market Context Essential Guidance 143 Learn More 144 Related Research Forecast and Competitive Analysis Documents IDC Predictions Documents Other Related Research Appendix A: Worldwide Software Market Sizing and Forecast Methodology Historical Market Values and Exchange Rates Appendix B: Worldwide Software Market Forecast Summary Glossary What Is Packaged Software? General Functional Market Definitions Applications Market Definitions Consumer Applications Collaborative Applications Content Applications Enterprise Resource Management Applications Supply Chain Management Applications Operations and Manufacturing Applications Engineering Applications Customer Relationship Management Applications P # IDC

3 TABLE OF CONTENTS Continued Application Development and Deployment Market Definitions Structured Data Management Software Application Development Software Quality and Life-Cycle Tools Application Server Middleware Integration and Process Automation Middleware Other Development and Deployment Data Access, Analysis, and Delivery Software System Infrastructure Software Market Definitions System and Network Management Software Security Software Storage Software System Software Geographic Area Definitions Operating Environment Definitions P 2012 IDC #235326

4 LIST OF TABLES 1 Worldwide Packaged Software by Region and Primary Market, Worldwide Packaged Software by Top 100 Vendors, Worldwide Packaged Software by Vendor, Worldwide Packaged Software by Vendor and Region, Worldwide Application Development and Deployment Software by Top 50 Vendors, Worldwide Application Development and Deployment Software by Vendor, Worldwide Application Development and Deployment Software by Vendor and Region, Worldwide Application Software by Top 50 Vendors, Worldwide Application Software by Vendor, Worldwide Application Software by Vendor and Region, Worldwide System Infrastructure Software by Top 50 Vendors, Worldwide System Infrastructure Software by Vendor, Worldwide System Infrastructure Software by Vendor and Region, Worldwide Packaged Software by Top 50 Vendors and Operating Environment, Top 3 Assumptions for the Worldwide Software Market, Key Forecast Assumptions for the Worldwide Software Market, Worldwide Packaged Software by Primary Market and Region, Worldwide Application Development and Deployment Software by Operating Environment, Worldwide Application Software by Operating Environment, Worldwide System Infrastructure Software by Operating Environment, Worldwide Packaged Software by Region, : Comparison of June 2011 and June 2012 Forecasts Exchange Rates, P # IDC

5 LIST OF FIGURES 1 Worldwide Packaged Software by Primary Market and Region, Worldwide Packaged Software by Primary Market, Worldwide Packaged Software by Region, Worldwide Packaged Software by Region, : Comparison of June 2011 and June 2012 Forecasts P 2012 IDC #235326

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7 IN THIS STUDY This IDC study provides a comprehensive summary of the worldwide packaged software market for 2011 and a five-year revenue forecast by geographic region and operating environment through Vendor revenue and market share for more than 1,000 vendors are provided for Methodology This study, published annually, encompasses the entire packaged software market, with the applicable market segment elements outlined in the sections that follow. Appendix A describes the methodology used for the development of content, and Appendix B provides a glossary that offers detailed market definitions and explains how IDC defines packaged software revenue. In addition, please note the following: The information contained in this study was derived from the IDC Software Market Forecaster (SMF) database as of May 15, All numbers in this document may not be exact due to rounding. For more information on IDC's software definitions and methodology, see IDC's Software Taxonomy, 2011 (IDC #228020, July 2011). Primary Markets Covered The study presents revenue and shares for the following primary markets as well as worldwide totals: Application development and deployment (AD&D) Applications System infrastructure software (SIS) Vendor and Market Segmentation Geographic Regions With regard to software product demand, three distinct geographical regions are considered in each vendor's revenue: Americas Europe, the Middle East, and Africa (EMEA) Asia/Pacific (including Japan) (APJ) Each segment is defined in the software market glossary in Appendix B IDC #

8 Operating Environments Market revenue and forecasts are also segmented by operating environment. Operating environments are defined collections of discrete hardware platforms and/or operating systems. The operating environments for this study are as follows: Mainframe Unix Linux and other open source Windows 32 and 64 Other (includes i5 and OS/400, other host/server, embedded, other single user, and hardware appliances) Each operating environment is defined in Appendix B. Software Market Taxonomy This study's software market glossary (see Appendix B), which is extracted from IDC's Software Taxonomy, 2011 (IDC #228020, July 2011), presents a functional view of the worldwide software market. IDC defines functional markets in terms of the features, functions, and attributes of the software package, not the problem being solved or the industry into which the software is deployed. In IDC's software market taxonomy, the worldwide software market is divided into 78 functional markets. The market information contained in this study is part of IDC's global software market coverage. The Related Research section of this study references companion IDC studies that go into greater detail and depth in analyzing individual software markets. Executive Summary The Packaged Software Market in 2011 Worldwide revenue increased from $295.7 billion in 2010 to $324.8 billion in 2011, an annual increase of 9.8%. Figure 1 illustrates 2011 software revenue by primary market and geographic region. 2 # IDC

9 FIGURE 1 Worldwide Packaged Software by Primary Market and Region, 2011 Source: IDC, 2012 Table 1 shows the 2011 revenue totals of the worldwide packaged software market by geographic region and primary market. The Americas (North America and Latin America) continued to account for over one-half (50.9%) of worldwide packaged software consumption. EMEA accounted for nearly one-third (32.7%) of worldwide revenue in Asia/Pacific (including Japan) accounted for the remaining 16.5% share of worldwide software revenue in IDC #

10 TABLE 1 Worldwide Packaged Software by Region and Primary Market, 2011 of Primary Market Americas Application development and deployment 38, Applications 81, System infrastructure software 45, Subtotal 165, EMEA Application development and deployment 26, Applications 51, System infrastructure software 28, Subtotal 106, APJ Application development and deployment 12, Applications 23, System infrastructure software 17, Subtotal 53, Worldwide Application development and deployment 77, Applications 156, System infrastructure software 90, Total 324, Source: IDC, 2012 The applications primary market continued to account for the largest portion of worldwide packaged software revenue, with 48.2% share in 2011 and up fractionally from 47.9% in SIS captured the second-largest share of worldwide revenue, at 28.0%, with AD&D contributing the remaining 23.9%. Worldwide Software Market Drivers, After the downturn in 2009, the software market experienced a strong rebound in , far from being the beginning of a moderate steady growth period, was an uphill year, reaching almost a double-digit growth rate. This year, in exchange, is forecast to be the beginning of the expected conservative but positive growing period that will be marked by a number of transformation trends. IDC published a number of prediction studies in late 2011 and early 2012 with analysts' views on the software market drivers in 2012 and beyond. Some key predictions excerpted from these documents are: Demand for digital commerce will outpace other enterprise software markets. On the B2C side, traditional retailers search for equilibrium between brick-and-mortar, online, mobile, and social commerce channels. In addition, we are seeing digital commerce growing beyond retail to other customer-facing industries, such as financial services. There is increasing demand for solutions 4 # IDC

11 for engaging with the customer in social, mobile, and online, new technologies that bring interactive marketing vendors to the fore. On the B2B side, supplier relationship management puts a premium on the formation and maintenance of business networks (e.g., a driver of the SAP acquisition of Ariba). Cloud monetization will become more sophisticated (beyond per user per month) as cloud applications mature. Current models leave value on the table or force customers to work in ways that don't really work. By 2012, about 83% of all net-new software firms coming to market will be provided as a service versus a packaged product (CD or download). Despite the differences between subscription-based SaaS and on-premise software paid for via perpetual license, many of the fundamentals of pricing and licensing remain the same; a metric is employed as a surrogate for value, a measure of use intensity or breadth of use is established, and the client is granted the rights to use the software for a duration of time. While we talk about on-premise software being licensed, and SaaS being provisioned, a license enables access in both cases. SaaS helps address many of the challenges that ISVs encounter with on-premise software, such as copy protection and user authentication. However, while user authentication and authorization can provision and manage access to SaaS when the service is priced per user, this doesn't address models that price based on other metrics, such as transactions or events. In 2012, businesses will move a portion of enterprise application seats to public cloud infrastructure, accelerating the wholesale model and growing the percentage of applications seats deployed on public cloud IaaS to about 2.4%. The chief customers for public cloud IaaS (hosting/provisioning infrastructure, storage, data services) have thus far been mostly commercial B2C companies, and starting in 2012, because of licensing changes on the part of ISVs and the desire for deployment flexibility on the part of user organizations, more enterprise apps (SAP, Oracle, Microsoft) will be running on public clouds saw consumer-centric firms (Zynga, Netflix, Dropbox, etc.) begin to scale on public cloud infrastructure, where many large SaaS firms (think of salesforce.com on Equanix) and ISVs building SaaS services (think of Network Associates) have been shifting for the past three to four years. This new flexibility makes it far easier for less specialized infrastructure providers to simply "certify the stack" on which applications will run with the software publisher rather than become specialists in the applications themselves, as the hosted application management (AM) providers have had to will be the year of "putting the pieces together" for effective customer engagement. The combination of mobile, social, Big Data/analytics, and cloud provides the essential components that enable a comprehensive customer experience. However, the race to embrace the term customer experience will leave many vendors woefully incapable of providing more than a limited viewpoint on the topic based on their perspective and core competencies. Enduser organizations are in the process of stepping back and viewing their delivery of product and service from this customer-centric viewpoint. IT vendors are significantly downstream from the business process but are the lynchpin in implementations that can deliver on consistency and economies of scale IDC #

12 Desktop and mobile application development and ecosystems will begin to converge in 2012; front-end platforms will continue to consolidate; web ecosystems will dominate. The success of smartphones introduced a new paradigm for developing and deploying applications that will have broad and farreaching implications for all application development tools and software architectures. The new paradigm, aside from its characteristic touchscreen user interface, relies on sets of granular applications, which individually carry fewer function points but utilize a variety of device sensors and a rich runtime with a notification architecture that connects to back-end cloud services. When compared with existing desktop or browser applications, this paradigm represents a rethinking of how applications are architected. Yet the model has proven its success as the number of devices that are able to run such apps is about to exceed the number of personal computers (Windows or Macintosh based) that are annually sold. In fact, the leading mobile app stores (Apple ios and Google Android) have now reached a combined portfolio of applications that exceed 1 million. This new paradigm will be lapping on the shores of desktop personal computer ISVs, first for consumer usage and eventually for enterprise usage beginning with The PC will begin a phase of rapid evolution leading to the mainstreaming of mobile application architectures and mobile development tools or, stated another way, to the convergence of mobile and desktop development. By the end of 2012, social will pervade middleware, application development tools, and life-cycle management. We've seen extraordinary adoption of social networks on the consumer Web Facebook has 800 million users, there are 200 million tweets per day, and LinkedIn has a market cap of nearly $7 billion. The social tidal wave is hitting the enterprise, and organizations have begun to implement enterprise social platforms initially in a somewhat protectionist mode but increasingly as a strategic initiative to better leverage their talent and intellectual capital, increase user productivity, and accelerate time to value. Everyone has a story about a customer problem or product failure that was resolved by an ad hoc team or an innovation that sprang into being, thanks to crowdsourcing. We're seeing huge deployments of enterprise social platforms large organizations adopting social platforms companywide for 100,000 employees. Security, economics, and openness will define the agenda for platform as a service. Most vendors will tell that their private platform-as-a-service revenue is at least an order of magnitude bigger than public cloud revenue. Of course some of this is because 2011 was the year of announcements about public cloud services from most leading platform vendors. Since most of these announcements will result in the general availability of public platforms for AD&D in 2012, this year is shaping up as a battleground for PaaS mindshare and market share. Big Data will materially impact a wide range of information technology. Leading database and data integration vendors will make inroads with Big Data products in Some of these products will augment or partially replace Hadoop or elements of Hadoop. Others will address other Big Data issues such as large-scale, in-memory computing and heterogeneous data support. In 6 # IDC

13 addition, the Big Data movement will propel support of Big Data in motion (message or stream based) as well as the current convention of data at rest. Ready access to valuable data from large stores will also enrich mobile offerings. In addition, Big Data technologies that include support for large unstructured and semistructured data will help drive a blurring in the distinction between structured data and content. This implies the need for text analytics and a way to dovetail with content management (CM). Customers will face confusing choices as virtualization, cloud system software, and infrastructure automation software converge. The line between virtualization, cloud system software, and infrastructure automation software will blur in 2012 as the majority of systems management monitoring, automation, and control software solutions now accommodate both virtual and physical environments. Virtualization has become widely accepted as an enterprise datacenter building block that provides the core platform for broader cloud architectures that feature end-user self-service automated provisioning, consumption-based metering, dynamic capacity optimization, and policy-based resource optimization. Private clouds will grow like gangbusters, one use case at a time. While vendors and customers debate the best architecture for building and operating cloud environments, demand for use case specific private clouds will grow like gangbusters as IT looks to implement self-service and resource pooling capabilities in order to control VM sprawl and improve business service levels. Given our previous prediction that customers will have a hard time deciding on the best cloud architecture to embrace on a broad scale, IDC expects that most private cloud implementations in 2012 will be built using modular greenfield strategies rather than executed as part of broad datacenter transformation initiatives. In 2012, self-serve infrastructure provisioning will become increasingly de rigueur for application development, test and QA teams, and internal IT staff but less so for the broader enterprise end-user community. Operational complexity will drive demand for predictive analytics and application performance management. Operational complexity in virtualized, scale-out, and cloud environments and composite Web-based application environments will drive demand for automated analytic performance management and optimization tools that can quickly discover, filter, correlate, remediate, and ideally prevent performance and availability slowdowns, outages, and other service-interrupting incidents. The need to rapidly sort through tens of thousands or even hundreds of thousands of alerts and events to quickly discover problems and pinpoint root causes far exceeds the capabilities of manual methods. To meet this growing need, IDC expects powerful performance management tools, based on sophisticated statistical analysis and modeling techniques, to emerge from niche status and become a recognized mainstream technology during the coming year. These analytics will be particularly important in driving increased demand for application performance management (APM) and end-user experience monitoring tools that can provide a real-time end-to-end view of the health and business impact of the total environment IDC #

14 Consumerization of IT will create new management challenges and solutions. IDC's 2011 Consumerization of IT Survey of 490 CIOs, IT executives, and managers found that 41% of IT organizations already support end users' ipads and iphones. IDC expects that 2012 will see the deepening of penetration of ipads, iphones, and other consumer devices in many organizations. System management vendors already provide top-level management capabilities, such as the ability to wipe corporate data from a phone if the phone is stolen, covering ipads, iphones, and BlackBerry devices. But IDC expects that 2012 will be the year of business app integration as the rise of apps stores confronts IT with challenges about which to support and which to exclude. This situation will force systems management software vendors to provide management solutions that are aware of how the app store is to be integrated into existing service and problem management solutions. It will also require IT to work with customers and service provider partners as necessary to think about how those stores can best be integrated. The security implications as well as the change and configuration management challenges for managing these mobile devices will have to be addressed. See the Learn More section of this study for an extensive listing of IDC's predictions documents. SITUATION OVERVIEW Worldwide Software Market Performance in 2011 Table 2 shows a ranking of the top 100 worldwide software vendors by revenue and market share. Table 3 lists the worldwide software vendors in alphabetical order. A view of the key software vendors and their key market shares in the worldwide packaged software market by region is provided in Table 4. Worldwide Performance in 2011 by Primary Market Application Development and Deployment The AD&D markets include software products used for the development and deployment of applications. There are two major subdivisions of the AD&D primary market: Software products that full-time professional developers use to develop and deploy applications Data access, analysis, and delivery products that are end user oriented tools for ad hoc data access, analysis, and reporting 8 # IDC

15 In total, the worldwide AD&D software functional markets generated vendor revenue of $77.5 billion in 2011 a strong 11.5% increase from 2010 as shown in Table 5, which presents the top 50 AD&D vendors ranked in order of 2011 worldwide revenue. The top 50 AD&D vendors accounted for an 84.2% share of the total AD&D market in Table 6 provides a list of the leading vendors in the worldwide AD&D market in alphabetical order. The Americas (predominantly the United States) accounts for the largest share of AD&D revenue. As shown in Table 7, 2011 revenue for the Americas region was $38.9 billion, or a 50.3% share of the overall worldwide AD&D market total. EMEA was the second-largest market, with a 34.1% share in 2011, followed by Asia/Pacific, at 15.6%. Applications This market consists of both business and consumer applications. Business applications, in turn, consist of enterprise applications and nonenterprise business applications, such as collaborative, content management, authoring and publishing, and search and discovery applications. In 2011, the packaged applications market grew by 10.4% to $156.5 billion (see Table 8). Table 9 provides a list of the leading vendors in the worldwide applications market in alphabetical order. As illustrated in Table 10, the Americas consumes the largest share of applications software, accounting for a 51.8% share in System Infrastructure Software The total SIS market accounted for $90.8 billion in revenue for 2011, up 7.4% from $84.6 billion in 2010, as shown in Table 11. Table 12 provides a list of the leading vendors in the worldwide SIS market in alphabetical order. As in the other primary markets, the Americas accounted for the largest share of SIS consumption in 2011, at 49.7% of the worldwide total (see Table 13) IDC #

16 TABLE 2 Worldwide Packaged Software by Top 100 Vendors, Growth Rank Microsoft 48, , , IBM 24, , , Oracle 20, , , SAP 12, , , Symantec 5, , , HP 5, , , EMC 3, , , CA Technologies 4, , , Adobe 3, , , VMware 1, , , Fujitsu 2, , , SAS 2, , , Intuit 2, , , Siemens 2, , , Infor 2, , , Dassault Systèmes 1, , , Autodesk 1, , , Salesforce.com 1, , , Intel Corp. 1, , , BMC 1, , , Hitachi 1, , , Sage 1, , , Cisco 1, , , Citrix 1, , , NEC 1, , , Activision Blizzard 1, , , SunGard 1, , , Synopsys 1, , , McKesson 1, , , Apple 1, , , NetApp 1, , , Trend Micro 1, , , ESRI , , Attachmate 1, , , Cadence Design Systems , Teradata OpenText DATEV PTC Software AG Red Hat Mentor Graphics Avaya Inc Nuance Communications Inc Quest Software # IDC

17 TABLE 2 Worldwide Packaged Software by Top 100 Vendors, Growth Rank Compuware Electronic Arts TIBCO Cerner Ansys Inc Informatica Siemens Enterprise Communications TOTVS Intergraph Kaspersky Lab Google Inc Fidelity National SWIFT HDS Kronos Inc Fiserv ADP FICO (formerly Fair Isaac) Bentley Systems Inc Micros Systems Verint Systems Misys Progress Software Corp Medical Information Technology (Meditech) Acision Constellation Software Inc Genesys Telecommunications Laboratories NICE Systems Pitney Bowes Software Allscripts UNIT Micro Focus Blackboard GXS MicroStrategy JDA Software Epicor Software Corp Invensys Aspect Software Northgate Information Solutions Ariba Inc Visma Amdocs Cegedim IDC #

18 TABLE 2 Worldwide Packaged Software by Top 100 Vendors, Growth Rank Fidessa Sophos Unisys Concur Technologies CommVault CompuGroup Medical InterSystems Corp ACI Worldwide Research In Motion UFIDA IntraLinks Subtotal 198, , , Other 75, , , Total 273, , , Source: IDC, 2012 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank /n software C Spatial D Systems i Infotech M CS D SAS AAM Technologies Abacus Research ABB Ltd ABBYY 31.0 NA ABC Systems Abiquo Able Commerce Accela Accellion Accelops Access Accounting Accountpro Accruent AccuRev ACI Worldwide # IDC

19 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Acision Acronis Actiance (formerly FaceTime) Actipro Software Active Endpoints Inc ActiveState Software Inc Activision Blizzard 1, , , Actuate Corp Adaptive Adaptive Computing Aderant Aditro Admerex Adobe 3, , , ADP Advanced Computer Software Advanced Data Exchange Advanced Systems Concepts Advent Software Advizor Solutions AFAS ERP Software Agilense ,138 Ahnlab Inc AKuP ,020 Alcatel-Lucent Aldata Solution Alfabet Allegro Development Corp Alloy Software ,090 Allscripts Almog Software Industries ,055 Alpha Software ,060 Alps System Integration Altair Engineering Inc Alterian Altibase Altova Amano Cincinnati Amazon.com Inc Amdocs American Software ANGOSS Software International Ltd Ansys Inc AOL/Mapquest Appcelerator AppDynamics IDC #

20 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Appfluent Technology Inc APPGEN Business Software Appian Appirio Appistry Apple 1, , , Application Security Inc Applied Computer Services (Hasib) Applied Materials Applied Systems Inc Applied Voice & Speech Technologies Aranda Software Arcplan Arena Argo Data Resource Corp Argos Systems ,087 ARI Network Ariba Inc ASA International Ascentis ASCON ASG Asiainfo Asianet TP Aspect Software Aspel Aspen Technology Aspera Aspose Asseco Group Astea International Asure AT Kearney Procurement Solutions Atari Atego Atempo ATENA UsÅ ugi Informatyczne i Finansowe Ateras Atlassian ATOSS Software Attachmate 1, , , Attunity Auraportal Autodesk 1, , , Autotask # IDC

21 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Auto-trol Technology Avast Software Avaya Inc AVEVA Group AVG Technologies (formerly Grisoft) Aviv Advanced Solutions ,083 Awareness Axios Systems Axoft Axway Ayanova (Ground Zero Tech-Works Inc.) B & L Associates B2 Systems Inc Backbase BackOffice Associates Balabit ,107 Barracuda BAS ,046 BasWare BDSIC ,012 BeaconIT Group ,111 Beeline Bematech Benner Solutions Bentley Systems Inc Beta Systems Software AG Binarymission Technologies ,103 Birdstep Technology Bison Bit 5.1 NA Bitam BitDefender , Biuro Projektowania Systemów Cyfrowych SA (BPSC SA) Black Duck Software Inc Blackbaud Blackboard Blue Coat BlueCielo ECM Solutions BlueKiwi BluePhoenix Solutions Blueprint Bluestripe Software BMC 1, , , Bokesoft IDC #

22 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Bond International Boothroyd Dewhurst ,088 Bosch Software Innovations GmbH BP Logix BPL Telecom BR Solutions ,011 Bradmark Technologies Inc Brainloop Inc Brainshark Brainzsquare BravoSolution Bravura Brightcove BRITC Broadlane BroadVision Brooks Automation Bsoft BSP Bull SAS Bungee Labs ,125 C2C CA Technologies 4, , , Cactus Commerce Cadence Design Systems , CADMEN ,075 Calipso ,005 Callidus Software Inc Calypso Technology Cambar Software Campus Management Corp Camstar Systems Inc Canon IT Solutions CAS Software Casewise Cashtech Solutions Caspio CAST Software Cav Systems ,077 CCH CCK Financial Solutions Ltd ,069 CDB CDC Corp CDNetworks Cegedim Cegid Centric Software # IDC

23 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Century Software Ceridian Cerner Cezanne Software CFEngine 2.0 NA ,029 CGI Information Systems Chang Yi Channel Advisor Chase Cooper Check Point Software Technologies Ciel Cimatron Cincom Systems Inc CiRBA Cisco 1, , , Citrix 1, , , Civica Clear Methods Inc ,115 Cleo Click Commerce Inc ClickSoftware Cloudera ,004 CMstat ,091 CNC Software Inc CodeJock Software ,120 Codemesh ,116 Cognology Coheris CollabNet Comarch SA Comax CombineNet Communispace CommVault ComOps Component Factory Pty. Ltd ,139 ComponentArt ,008 ComponentOne ComponentSpace ,104 Composite Software Comptel CompuGroup Medical Computacion en Accion Computational Engineering Intl. Inc ,053 Compuware Comverse IDC #

24 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Concur Technologies Consensus ,102 Consona Constellation Software Inc Contour Components ,081 Convergys Cordys Coremedia Coretech-Diva Cornerstone OnDemand Correlsense Cosmocom ,032 Courion Corp Coverity Creawor Critical Path Crown Computing CS&S CS2C CSB-System CSC Curl Inc Cyberdime CyberOne 2.2 NA 1,154 Cybozu Inc Daptiv Dart Communications ,122 Dassault Systèmes 1, , , Data Expedition ,126 Data Foundations Inc Data Global (formerly GFT Inboxx) Data I/O Data Streams DataCore Software DataLever Corp ,072 Datawatch Corp DATEV Daumsoft dbase Defontana Delcam Dell Deltek Inc DemandTec Denodo Technologies Inc Desaware ,123 Descartes Systems # IDC

25 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Developer Express Dichain Digia QT Commercial Digicert ,061 Diginet ,144 Digital Arts Digital River Inc Digital Ware DigiwinSoft Diskeeper Corp DMTI Spatial Inc DO2 Technologies DotNetNuke Dr.Web 38.3 NA Dream Security Drishti soft ,003 DSC Dundas Data Visualization Duzon Bizon Dynamacs DynamicOps Dynaware EAB Systems ,109 eabax EastSoft Easylink Services ebanswers EBP ebworx ecminer ,112 Econintel Treasury Systems Inc e-conomic Ecteon Edifecs efuture IT EG eg Innovations egain Egenera Inc eglobal System eiq Networks Inc Elcom International Inc Electronic Arts Element K vision Embarcadero Technologies Embotics IDC #

26 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank EMC 3, , , Empirix Empress Software Emptoris Encirq ENEA Enigma Enterasys Networks Inc EnterpriseDB Enterworks Entigo Entrust Inc Epicor Software Corp EPiServer eplus ERI Bancaire Escalate Retail ESET Eshbel 11.5 NA Esker Software espatial e-spirit AG ESRI , , Etelos Inc ,148 Eurosoft (UK) EVault (A Seagate Company) EVER TEAM EvolveWare Inc ,039 Exa Corp Exact Excel Force ,041 Excel Technology ,128 Execplan EXEM Expandable Software Inc Experian Explorer Software Inc Extol Eze Castle Software EZLegacy FairCom Corp Falconstor Software Inc Fasoo.com Fenestrae BV Feya ,145 FFE Software Inc. (FirstSQL) ,009 FICO (formerly Fair Isaac) # IDC

27 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Fidelity National Fidessa Fieldglass Financial Sciences Corp Financial Software Systems Finestra ,051 Fiorano Software Firestar First Apex Technologies Fiserv Flexera Software FlexiInternational Software Flexline ,042 FlexSystem Focus Softnet 7.7 NA FOR-CS Formis Bass ,086 Formula Telecom Solutions Fortinet Foundation for Windows Founder Order Four Js Development Tools Inc FPX Freewill Solutions Frontier FrontRange Solutions Inc F-Secure Corp Fujian Apexsoft Fujitsu 2, , , Galactica Gale Technologies Gavel and Gown Software GD ,063 GE Intelligent Platforms Gemalto Gemmar Systems International Inc Genesys Telecommunications Laboratories Geniustec Genuitec LLC ,023 Geometric Technologies (formerly TekSoft) GFI Informatique GHX GigaSpaces Gitbuy Global IDs Inc , IDC #

28 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Global Relay Global Services ,135 Global Software Inc GlobalSCAPE Golden Yikang GoldenSource ,030 Google Inc Gores Technology Group GrammaTech Inc ,024 GrapeCity Green Hills Software Greentree Gruppo Formula GSE Systems GT Software Guanqun Jinchen Guidance GXS Haansoft Inc ,151 Halo Technology Halogen Software Handysoft HansaWorld HardDollar Hashavshevet 11.1 NA Hauri Inc HDS Healy Hudson Heinsohn ,035 HeJia Hello2Morrow ,092 Help/Systems Heroix Corp Hi Sun HID Global High Line Corp Hitachi 1, , , HMA Group ,000 Hogia Group Hollybridge Hornbill Systems Ltd HP 5, , , HR Access Huahai Medical Info Huawei Hubspan Hubwoo # IDC

29 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Hughes Systique Human Inference Hyland Software Hyphen Hyphen Solutions IAS 0.0 NA ,153 IBA Health IBM 24, , , IBM Application Solutions IBPhoenix ,119 IBS ICG Commerce icims Ideablade IDOX Group PLC IFCA IFS IHS Inc imany IMAS 0.1 NA 1,155 Immersive Design Inc ,082 Imperva Inc Inca Internet Infinite Software Infor 2, , , Informat ,074 Informatica Information Builders Inc Infosec Infosys InfoTel Corp InfoVista Infragistics Corp INgage Networks Ingres Corp Initech Innotas Innovation Group InRule Technology InSoft OY ,007 Inspur Instantiations Inc INSTEC Inswave ,094 Intalio Intec , IDC #

30 TABLE 3 Worldwide Packaged Software by Vendor, Integrated Research (DBA Prognosis) Growth Rank Integrated Support Systems ,025 Intel Corp. 1, , , Intelisis IntelliCorp Inc Interactive Intelligence Inc Interactive Objects InterCall Interfacing Technologies Intergraph Intershop Communications Intersoft ,142 InterSystems Corp IntraLearn Software Corp IntraLinks Intuit 2, , , Invensys Investment Technology Group Iocomp Software Inc ,100 I-ON Communications Ipswitch IQ Navigator Iquest ,001 IRIS Software irise IronCAD ,037 ISIS Papyrus Island Pacific Inc ISO Enterprise ISU Ubcare Itron Inc ivirtua Jacada Jack Henry & Associates JackBe JADE jbase JDA Software Jeeves Information Systems Jenzabar Jesta I.S JetBrains Jiangmin JiranSoft JIT Jitterbit , # IDC

31 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Jive Software Joyent ,096 Julong Info ,006 Justsystem Corp K Kaavo Kaba Benzing Kalido Kana Kapow Technologies Kaseya Kaspersky Lab Kaspersky Lab China - JV 58.1 NA 1,156 Kenexa Ketera Kewill Systems Keynote Systems Inc Keyware Kicom Kingdee Kingsoft Kingstar Winning Klocwork Kofax Kognitio Kongyoung Dbm ,059 Kony Solutions Koreawisenut Kronos Inc Ksign KSS KT Data ,143 Kubotek KXEN Kyriba LANDesk Software Lanner Group Inc Laserfiche Laszlo Systems ,022 Layer 7 Technologies Lefebvre Software Levi, Ray & Shoup Inc LexisNexis Interface Software Inc Liaison Likom Lithium Live World , IDC #

32 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank LiveOffice LivePerson LMS International LogMeIn Inc Logo Business Solutions Lombard Risk Management LongJump Longtop Group Lumension Security Lumesse Lumis Lumley Technology LynuxWorks Inc M2Soft M86 Security Macrologic Magma Design Automation Maia Intelligence ,047 Main Sequence Mainsoft MaintenanceNet Mamut Managed Methods ,040 ManageIQ Management Controls Inc Management Dynamics Manager ,098 Mandriva Manhattan Associates Maninsoft (formerly Miracom I&C) ,114 MarkAny Mashery ,018 Matisse ,027 Matrikon (a division of Honeywell) Matrix Maximizer Software Inc Maxwell Systems MCBA McKesson 1, , , MCS ,127 MDQ Systems ,048 Medical Information Technology (Meditech) Medidata Solutions Mediopia ,101 Mega International Megacenter , # IDC

33 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Mendix ,150 Mentor Graphics Merced Systems Merge Meridian Systems Meta MetaCase Metaware Metron Technology Ltd. AG Micro Focus Micropay Micros Systems Microsoft 48, , , MicroStrategy Midland HR & Payroll Solutions Mimecast Mincom Ltd MindFusion Miracom Missler Software Misys Moai Technologies Inc Model N MSC Software Multima Corp Murex MYOB Ltd Myriad Mzinga N2N ,050 Nari NASDAQ OMX Navita ,071 ncircle NEC 1, , , Nedstat Nelito Systems Nemetschek Neogrid Neolane NeoSystems ,095 NetApp 1, , , netevidence netforensics Netop Solutions NetRatings (Nielsen Online) Netron Inc IDC #

34 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Netsecure Technology ,106 Netsis ,149 NetSuite Netuitive NeuralSoft NeuSoft Nevron Software ,113 New & Grand NEW Customer Service New Relic 14.0 NA Newgen Software Technologies Ltd NewsGator Newsky Newtron Nexant Nexaweb Nextrials ,065 Nextstep Infotech Nexus NICE Systems NICSTECH ,038 Nilesoft ,108 Nimaya ,137 Nimbula 1.0 NA ,097 Nintex nkia No Magic Inc ,062 Nobscot ,013 Nolio Software Nomura Research Institute Ltd Norman ASA Nortel Networks NA 1,157 Northgate Information Solutions NovaStor NOW Solutions LLC ,019 NsFocus Nuance Communications Inc NuBridges Nucleus Software Numara Software Nuri Telecom Nuview Systems Inc OBIC Business Consultants Co. Ltd OBIC Co. Ltd Object Connections # IDC

35 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank ObjectFX Objective Objectivity Inc Ofisis ,131 Oki Electric Industry Omega Omtool Ltd One Network One Online Resources Corp Onventis Open Solutions Inc Open Systems Holding Corp OpenConnect Systems OpenLink OpenText OPNET Opscode Optier Oracle 20, , , Orange HR ,147 Orbium ,110 Orchestra Networks ,099 ORSYP SA OSISoft Oullim Information Technology ,152 Outcome P2 Energy Solutions Panda Security Panorama Software Panorama View Software Corp ,105 Pansky Pansoft Parallels Parasoft Parature Inc PartsRiver-Saqqara ,140 Paychex PayGlobal PCI Enterprises PDS Pearson Pegasystems PenSoft Penta Security Systems Penta Technologies Peoplefluent IDC #

36 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Perceptive Software Perfect Commerce Perforce Software Perpetuum Software Personal & Informatik Pervasive Software Inc Pitney Bowes Software Planisware Planview Platform Computing Platsoft Plus Technologies Plusoft PNMsoft Poet Software Corp Pointwise Inc ,057 Polaris Software Lab Polymita Powerise Powerlan Precise Software Previsor Prima Solutions Primeton Primeur Princeton Financial Sys. Inc proalpha Prodacapo ProfitLine Progress Software Corp Prolifics Promantek Pronto Proofpoint ProQuest PROS Pricing Solutions Protegrity PSI PTC Puppet Labs 2.5 NA PureComponents ,067 QAD QlikTech Quadramed Quality Corp Qualiware ,002 Qualys # IDC

37 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Quest Software QuickArrow RainMaker Software Rally Software Development Corp Ramco Systems Random ,089 Rapid Raxco readhc ReadSoft Realization Technologies RealNetworks Inc Rearden Commerce Inc Rebex ,044 Recommind Red Flag Software Co. Ltd Red Hat RedEye RedPrairie Redwood RemObjects Software Replicon Research In Motion Resonate Inc Responsys Retalix Reval Revionics RightNow Technologies Inc Rightscale Rising Rocket Software Rogue Wave Software Rollbase Inc ,084 Royal Systems ,070 rpath S Saba Software Inc Safe Software Inc SafeNet Inc Sage 1, , , Saint Salesforce.com 1, , , Samsung SDS Sand Technology SAP 12, , , SAS 2, , , IDC #

38 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank ScheduleSoft ScienceLogic SciQuest SDC ,121 SDL International Security Innovation Inc Secuve Sedona Corp ,080 Seeburger Selectica Inc Selligent Sencha Sendmail Senior Com ,054 Senior Sistemas Serena ServiceNow Servoy SEVEN Networks Inc SGA Shanghai Huateng Shanghai Koal Shinewave ,078 Shing Hang ,026 SHL Group Siemens 2, , , Siemens Enterprise Communications Sightline Systems Signiant Silicon Graphics SilkRoad Silver Net Computer Systems Ltd Silverlake SimCorp Singlee Siquel ,134 Sistemas Bejerman Sitecore SIT-QAD ,033 Siveco SkillSoft Skybox Security Skyway Software ,031 Slingshot ,015 SmartSoftware Inc SMS # IDC

39 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Smyth Systems SnapLogic SOA Software Inc Socialtext Soft Yazilim ,141 Softbase Systems Softbrain Co. Ltd SoftCamp SofTech Inc Softforum Softland Softpower ,118 SoftRun 2.8 NA 1,158 Software AG Software Engineering of America Software FX Software Innovation Solarwinds Solipsis Solix Soluciones-ar ,073 Sonda Sonoa Systems Sopheon Sophos Sopra Group SourceFire SourceIQ Inc South River Technologies Sparx Systems Spectra Spigit SPS Commerce SQL Software ,130 SS&C Technologies Star Storage ,068 SteelEye Technology Inc. (SIOS) Steema Stonebranch Strategy StrikeIron Inc ,079 Stringdata ,093 Successfactors Sumisho Computer Systems Corp Summit SumTotal Sunfish , IDC #

40 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank SunGard 1, , , Sunyard Superdata SuperOffice Supplychain Connect SupplyOn SupportSoft SWIFT Swisslog Symantec 5, , , Syncfusion Syncsort Synopsys 1, , , Synygy Syspro Systar SA Systex abdultableau Software Tagetik Take Solutions Talend Talentsoft Taleo Talisma Tally Targit Tavant Technologies TCS Tealeaf Technology Teamquest Corp TechExcel Inc Technology One Tecsys Inc Tectia TEDS Telerik Telesoft Telligent TELUS (Emergis) Temenos Teradata THBComponentware ,136 The Salamander Organization Think Thomson Reuters Tian Jian TIBCO # IDC

41 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Tibero Tibersoft TigerLogic Timecentre TmaxSoft Tomax Corp Tongtech Top Image Systems Torex Toshiba Solutions Corp Total Logistics ,043 TotalSoft TOTVS Trace One Transoft Trend Micro 1, , , Trillium Software Trintech Group PLC Triple Point Technology Tripwire Inc Trisunwyse ,021 Troux Technologies TRS ,056 Trustwave TSS ,052 Turbolinux Inc TXT e-solutions Tyler Technologies UC UFIDA Ultimate Software Ultrapower Unanet Technologies Unet System Unicom Systems UNIFY Corp Unisys UNIT update software Upsidesoft Uptime Software USU Software AG Vanguard Vasco VBA NA 1,159 Veeam Vendavo IDC #

42 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Venotion Technologies ,017 Venus Tec Veracode Verint Systems Verivo Versant Versata Versys Vertex Inc ViaPeople ,014 Viewpoint Construction Software Visible Systems Corp Vision Solutions Inc VisionWare Visma Vitria Technology Vivisimo VMTurbo 2.5 NA VMware 1, , , Wall Street Systems Warevalley Waterford Technologies Wavelink Corp Webcab Components ,049 WebLayers Inc Webroot Websense Webspy ,133 WebTrends White Information Networking Win Estimator Inc Wing Arc WINS Technet ,058 Wipro Healthcare WISE itech ,028 Wizrom ,036 WMSL Wolf Frameworks ,064 Wolters Kluwer Financial Services Workcube 0.3 NA ,146 Workday Inc WorkForce Software Works Applications Co. Ltd Workstream WS Xactly Corp XAware Inc # IDC

43 TABLE 3 Worldwide Packaged Software by Vendor, Growth Rank Xceed XIGNITE ,124 Xnear ,129 Xpriori ,010 xtuple Yardi Yellowfin Younglimwon Softlab YouSendIt Zend Technologies Inc Zenoss Zhifang S&T ,016 Zhonglian Zilliant Inc Zionex ZL Technologies Zoho Zoner Software ,076 Zucchetti Zycus ZyLAB North America LLC Zynapse Zyrion Subtotal 228, , , Other 45, , , Total 273, , , Source: IDC, 2012 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide /n software C Spatial D Systems i Infotech M CS D SAS AAM Technologies Abacus Research IDC #

44 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide ABB Ltd ABBYY ABC Systems Abiquo Able Commerce Accela Accellion Accelops Access Accounting Accountpro Accruent AccuRev ACI Worldwide Acision Acronis Actiance (formerly FaceTime) Actipro Software Active Endpoints Inc ActiveState Software Inc Activision Blizzard , Actuate Corp Adaptive Adaptive Computing Aderant Aditro Admerex Adobe 2, , , ADP Advanced Computer Software Advanced Data Exchange Advanced Systems Concepts Advent Software Advizor Solutions AFAS ERP Software Agilense Ahnlab Inc AKuP Alcatel-Lucent Aldata Solution Alfabet Allegro Development Corp Alloy Software Allscripts Almog Software Industries Alpha Software Alps System Integration # IDC

45 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Altair Engineering Inc Alterian Altibase Altova Amano Cincinnati Amazon.com Inc Amdocs American Software ANGOSS Software International Ltd. Ansys Inc AOL/Mapquest Appcelerator AppDynamics Appfluent Technology Inc APPGEN Business Software Appian Appirio Appistry Apple , Application Security Inc Applied Computer Services (Hasib) Applied Materials Applied Systems Inc Applied Voice & Speech Technologies Aranda Software Arcplan Arena Argo Data Resource Corp Argos Systems ARI Network Ariba Inc ASA International Ascentis ASCON ASG Asiainfo Asianet TP Aspect Software Aspel Aspen Technology Aspera Aspose Asseco Group IDC #

46 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Astea International Asure AT Kearney Procurement Solutions Atari Atego Atempo ATENA UsÅ ugi Informatyczne i Finansowe Ateras Atlassian ATOSS Software Attachmate , Attunity Auraportal Autodesk , Autotask Auto-trol Technology Avast Software Avaya Inc AVEVA Group AVG Technologies (formerly Grisoft) Aviv Advanced Solutions Awareness Axios Systems Axoft Axway Ayanova (Ground Zero Tech Works Inc.) B & L Associates B2 Systems Inc Backbase BackOffice Associates Balabit Barracuda BAS BasWare BDSIC BeaconIT Group Beeline Bematech Benner Solutions Bentley Systems Inc Beta Systems Software AG Binarymission Technologies # IDC

47 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Birdstep Technology Bison Bit Bitam BitDefender Biuro Projektowania Systemów Cyfrowych SA (BPSC SA) Black Duck Software Inc Blackbaud Blackboard Blue Coat BlueCielo ECM Solutions BlueKiwi BluePhoenix Solutions Blueprint Bluestripe Software BMC 1, , Bokesoft Bond International Boothroyd Dewhurst Bosch Software Innovations GmbH BP Logix BPL Telecom BR Solutions Bradmark Technologies Inc Brainloop Inc Brainshark Brainzsquare BravoSolution Bravura Brightcove BRITC Broadlane BroadVision Brooks Automation Bsoft BSP Bull SAS Bungee Labs C2C CA Technologies 2, , , Cactus Commerce Cadence Design Systems , CADMEN Calipso IDC #

48 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Callidus Software Inc Calypso Technology Cambar Software Campus Management Corp Camstar Systems Inc Canon IT Solutions CAS Software Casewise Cashtech Solutions Caspio CAST Software Cav Systems CCH CCK Financial Solutions Ltd CDB CDC Corp CDNetworks Cegedim Cegid Centric Software Century Software Ceridian Cerner Cezanne Software CFEngine CGI Information Systems Chang Yi Channel Advisor Chase Cooper Check Point Software Technologies Ciel Cimatron Cincom Systems Inc CiRBA Cisco 1, , Citrix 1, , Civica Clear Methods Inc Cleo Click Commerce Inc ClickSoftware Cloudera CMstat CNC Software Inc CodeJock Software # IDC

49 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Codemesh Cognology Coheris CollabNet Comarch SA Comax CombineNet Communispace CommVault ComOps Component Factory Pty. Ltd ComponentArt ComponentOne ComponentSpace Composite Software Comptel CompuGroup Medical Computacion en Accion Computational Engineering Intl Inc. Compuware Comverse Concur Technologies Consensus Consona Constellation Software Inc Contour Components Convergys Cordys Coremedia Coretech-Diva Cornerstone OnDemand Correlsense Cosmocom Courion Corp Coverity Creawor Critical Path Crown Computing CS&S CS2C CSB-System CSC Curl Inc Cyberdime Cybozu Inc IDC #

50 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Daptiv Dart Communications Dassault Systèmes , , Data Expedition Data Foundations Inc Data Global (formerly GFT Inboxx) Data I/O Data Streams DataCore Software DataLever Corp Datawatch Corp DATEV Daumsoft dbase Defontana Delcam Dell Deltek Inc DemandTec Denodo Technologies Inc Desaware Descartes Systems Developer Express Dichain Digia QT Commercial Digicert Diginet Digital Arts Digital River Inc Digital Ware DigiwinSoft Diskeeper Corp DMTI Spatial Inc DO2 Technologies DotNetNuke Dr.Web Dream Security Drishti soft DSC Dundas Data Visualization Duzon Bizon Dynamacs DynamicOps Dynaware EAB Systems # IDC

51 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide eabax EastSoft Easylink Services ebanswers EBP ebworx ecminer Econintel Treasury Systems Inc. e-conomic Ecteon Edifecs efuture IT EG eg Innovations egain Egenera Inc eglobal System eiq Networks Inc Elcom International Inc Electronic Arts Element K vision Embarcadero Technologies Embotics EMC 2, , , Empirix Empress Software Emptoris Encirq ENEA Enigma Enterasys Networks Inc EnterpriseDB Enterworks Entigo Entrust Inc Epicor Software Corp EPiServer eplus ERI Bancaire Escalate Retail ESET Eshbel Esker Software espatial IDC #

52 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide e-spirit AG ESRI , Etelos Inc Eurosoft (UK) EVault (A Seagate Company) EVER TEAM EvolveWare Inc Exa Corp Exact Excel Force Excel Technology Execplan EXEM Expandable Software Inc Experian Explorer Software Inc Extol Eze Castle Software EZLegacy FairCom Corp Falconstor Software Inc Fasoo.com Fenestrae BV Feya FFE Software Inc. (FirstSQL) FICO (formerly Fair Isaac) Fidelity National Fidessa Fieldglass Financial Sciences Corp Financial Software Systems Finestra Fiorano Software Firestar First Apex Technologies Fiserv Flexera Software FlexiInternational Software Flexline FlexSystem Focus Softnet FOR-CS Formis Bass Formula Telecom Solutions Fortinet Foundation for Windows # IDC

53 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Founder Order Four Js Development Tools Inc FPX Freewill Solutions Frontier FrontRange Solutions Inc F-Secure Corp Fujian Apexsoft Fujitsu , , Galactica Gale Technologies Gavel and Gown Software GD GE Intelligent Platforms Gemalto Gemmar Systems International Inc. Genesys Telecommunications Laboratories Geniustec Genuitec LLC Geometric Technologies (formerly TekSoft) GFI Informatique GHX GigaSpaces Gitbuy Global IDs Inc Global Relay Global Services Global Software Inc GlobalSCAPE Golden Yikang GoldenSource Google Inc Gores Technology Group GrammaTech Inc GrapeCity Green Hills Software Greentree Gruppo Formula GSE Systems GT Software Guanqun Jinchen Guidance GXS IDC #

54 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Haansoft Inc Halo Technology Halogen Software Handysoft HansaWorld HardDollar Hashavshevet Hauri Inc HDS Healy Hudson Heinsohn HeJia Hello2Morrow Help/Systems Heroix Corp Hi Sun HID Global High Line Corp Hitachi , , HMA Group Hogia Group Hollybridge Hornbill Systems Ltd HP 3, , , HR Access Huahai Medical Info Huawei Hubspan Hubwoo Hughes Systique Human Inference Hyland Software Hyphen Hyphen Solutions IAS IBA Health IBM 14, , , , IBM Application Solutions IBPhoenix IBS ICG Commerce icims Ideablade IDOX Group PLC IFCA IFS # IDC

55 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide IHS Inc imany Immersive Design Inc Imperva Inc Inca Internet Infinite Software Infor 1, , Informat Informatica Information Builders Inc Infosec Infosys InfoTel Corp InfoVista Infragistics Corp INgage Networks Ingres Corp Initech Innotas Innovation Group InRule Technology InSoft OY Inspur Instantiations Inc INSTEC Inswave Intalio Intec Integrated Research (DBA Prognosis) Integrated Support Systems Intel Corp. 1, , Intelisis IntelliCorp Inc Interactive Intelligence Inc Interactive Objects InterCall Interfacing Technologies Intergraph Intershop Communications Intersoft InterSystems Corp IntraLearn Software Corp IntraLinks Intuit 2, , Invensys IDC #

56 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Investment Technology Group Iocomp Software Inc I-ON Communications Ipswitch IQ Navigator Iquest IRIS Software irise IronCAD ISIS Papyrus Island Pacific Inc ISO Enterprise ISU Ubcare Itron Inc ivirtua Jacada Jack Henry & Associates JackBe JADE jbase JDA Software Jeeves Information Systems Jenzabar Jesta I.S JetBrains Jiangmin JiranSoft JIT Jitterbit Jive Software Joyent Julong Info Justsystem Corp K Kaavo Kaba Benzing Kalido Kana Kapow Technologies Kaseya Kaspersky Lab Kenexa Ketera Kewill Systems Keynote Systems Inc Keyware # IDC

57 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Kicom Kingdee Kingsoft Kingstar Winning Klocwork Kofax Kognitio Kongyoung Dbm Kony Solutions Koreawisenut Kronos Inc Ksign KSS KT Data Kubotek KXEN Kyriba LANDesk Software Lanner Group Inc Laserfiche Laszlo Systems Layer 7 Technologies Lefebvre Software Levi, Ray & Shoup Inc LexisNexis Interface Software Inc. Liaison Likom Lithium Live World LiveOffice LivePerson LMS International LogMeIn Inc Logo Business Solutions Lombard Risk Management LongJump Longtop Group Lumension Security Lumesse Lumis Lumley Technology LynuxWorks Inc M2Soft M86 Security Macrologic IDC #

58 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Magma Design Automation Maia Intelligence Main Sequence Mainsoft MaintenanceNet Mamut Managed Methods ManageIQ Management Controls Inc Management Dynamics Manager Mandriva Manhattan Associates Maninsoft (formerly Miracom I&C) MarkAny Mashery Matisse Matrikon (a division of Honeywell) Matrix Maximizer Software Inc Maxwell Systems MCBA McKesson 1, , MCS MDQ Systems Medical Information Technology (Meditech) Medidata Solutions Mediopia Mega International Megacenter Mendix Mentor Graphics Merced Systems Merge Meridian Systems Meta MetaCase Metaware Metron Technology Ltd. AG Micro Focus Micropay Micros Systems Microsoft 26, , , , # IDC

59 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide MicroStrategy Midland HR & Payroll Solutions Mimecast Mincom Ltd MindFusion Miracom Missler Software Misys Moai Technologies Inc Model N MSC Software Multima Corp Murex MYOB Ltd Myriad Mzinga N2N Nari NASDAQ OMX Navita ncircle NEC , , Nedstat Nelito Systems Nemetschek Neogrid Neolane NeoSystems NetApp , netevidence netforensics Netop Solutions NetRatings (Nielsen Online) Netron Inc Netsecure Technology Netsis NetSuite Netuitive NeuralSoft NeuSoft Nevron Software New & Grand NEW Customer Service New Relic Newgen Software Technologies Ltd IDC #

60 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide NewsGator Newsky Newtron Nexant Nexaweb Nextrials Nextstep Infotech Nexus NICE Systems NICSTECH Nilesoft Nimaya Nimbula Nintex nkia No Magic Inc Nobscot Nolio Software Nomura Research Institute Ltd Norman ASA Northgate Information Solutions NovaStor NOW Solutions LLC NsFocus Nuance Communications Inc NuBridges Nucleus Software Numara Software Nuri Telecom Nuview Systems Inc OBIC Business Consultants Co Ltd. OBIC Co. Ltd Object Connections ObjectFX Objective Objectivity Inc Ofisis Oki Electric Industry Omega Omtool Ltd One Network One Online Resources Corp Onventis Open Solutions Inc # IDC

61 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Open Systems Holding Corp OpenConnect Systems OpenLink OpenText OPNET Opscode Optier Oracle 13, , , , Orange HR Orbium Orchestra Networks ORSYP SA OSISoft Oullim Information Technology Outcome P2 Energy Solutions Panda Security Panorama Software Panorama View Software Corp Pansky Pansoft Parallels Parasoft Parature Inc PartsRiver-Saqqara Paychex PayGlobal PCI Enterprises PDS Pearson Pegasystems PenSoft Penta Security Systems Penta Technologies Peoplefluent Perceptive Software Perfect Commerce Perforce Software Perpetuum Software Personal & Informatik Pervasive Software Inc Pitney Bowes Software Planisware Planview Platform Computing Platsoft IDC #

62 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Plus Technologies Plusoft PNMsoft Poet Software Corp Pointwise Inc Polaris Software Lab Polymita Powerise Powerlan Precise Software Previsor Prima Solutions Primeton Primeur Princeton Financial Sys. Inc proalpha Prodacapo ProfitLine Progress Software Corp Prolifics Promantek Pronto Proofpoint ProQuest PROS Pricing Solutions Protegrity PSI PTC Puppet Labs PureComponents QAD QlikTech Quadramed Quality Corp Qualiware Qualys Quest Software QuickArrow RainMaker Software Rally Software Development Corp. Ramco Systems Random Rapid Raxco readhc # IDC

63 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide ReadSoft Realization Technologies RealNetworks Inc Rearden Commerce Inc Rebex Recommind Red Flag Software Co. Ltd Red Hat RedEye RedPrairie Redwood RemObjects Software Replicon Research In Motion Resonate Inc Responsys Retalix Reval Revionics RightNow Technologies Inc Rightscale Rising Rocket Software Rogue Wave Software Rollbase Inc Royal Systems rpath S Saba Software Inc Safe Software Inc SafeNet Inc Sage , , Saint Salesforce.com 1, , Samsung SDS Sand Technology SAP 5, , , , SAS 1, , , ScheduleSoft ScienceLogic SciQuest SDC SDL International Security Innovation Inc Secuve Sedona Corp IDC #

64 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Seeburger Selectica Inc Selligent Sencha Sendmail Senior Com Senior Sistemas Serena ServiceNow Servoy SEVEN Networks Inc SGA Shanghai Huateng Shanghai Koal Shinewave Shing Hang SHL Group Siemens 1, , Siemens Enterprise Communications Sightline Systems Signiant Silicon Graphics SilkRoad Silver Net Computer Systems Ltd. Silverlake SimCorp Singlee Siquel Sistemas Bejerman Sitecore SIT-QAD Siveco SkillSoft Skybox Security Skyway Software Slingshot SmartSoftware Inc SMS Smyth Systems SnapLogic SOA Software Inc Socialtext Soft Yazilim Softbase Systems # IDC

65 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Softbrain Co. Ltd SoftCamp SofTech Inc Softforum Softland Softpower Software AG Software Engineering of America Software FX Software Innovation Solarwinds Solipsis Solix Soluciones-ar Sonda Sonoa Systems Sopheon Sophos Sopra Group SourceFire SourceIQ Inc South River Technologies Sparx Systems Spectra Spigit SPS Commerce SQL Software SS&C Technologies Star Storage SteelEye Technology Inc (SIOS) Steema Stonebranch Strategy StrikeIron Inc Stringdata Successfactors Sumisho Computer Systems Corp. Summit SumTotal Sunfish SunGard 1, , Sunyard Superdata IDC #

66 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide SuperOffice Supplychain Connect SupplyOn SupportSoft SWIFT Swisslog Symantec 3, , , , Syncfusion Syncsort Synopsys , Synygy Syspro Systar SA Systex abdultableau Software Tagetik Take Solutions Talend Talentsoft Taleo Talisma Tally Targit Tavant Technologies TCS Tealeaf Technology Teamquest Corp TechExcel Inc Technology One Tecsys Inc Tectia TEDS Telerik Telesoft Telligent TELUS (Emergis) Temenos Teradata THBComponentware The Salamander Organization Think Thomson Reuters Tian Jian TIBCO Tibero Tibersoft # IDC

67 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide TigerLogic Timecentre TmaxSoft Tomax Corp Tongtech Top Image Systems Torex Toshiba Solutions Corp Total Logistics TotalSoft TOTVS Trace One Transoft Trend Micro , Trillium Software Trintech Group PLC Triple Point Technology Tripwire Inc Trisunwyse Troux Technologies TRS Trustwave TSS Turbolinux Inc TXT e-solutions Tyler Technologies UC UFIDA Ultimate Software Ultrapower Unanet Technologies Unet System Unicom Systems UNIFY Corp Unisys UNIT update software Upsidesoft Uptime Software USU Software AG Vanguard Vasco Veeam Vendavo Venotion Technologies Venus Tec IDC #

68 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Veracode Verint Systems Verivo Versant Versata Versys Vertex Inc ViaPeople Viewpoint Construction Software Visible Systems Corp Vision Solutions Inc VisionWare Visma Vitria Technology Vivisimo VMTurbo VMware 1, , Wall Street Systems Warevalley Waterford Technologies Wavelink Corp Webcab Components WebLayers Inc Webroot Websense Webspy WebTrends White Information Networking Win Estimator Inc Wing Arc WINS Technet Wipro Healthcare WISE itech Wizrom WMSL Wolf Frameworks Wolters Kluwer Financial Services Workcube Workday Inc WorkForce Software Works Applications Co. Ltd Workstream WS Xactly Corp # IDC

69 TABLE 4 Worldwide Packaged Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide XAware Inc Xceed XIGNITE Xnear Xpriori xtuple Yardi Yellowfin Younglimwon Softlab YouSendIt Zend Technologies Inc Zenoss Zhifang S&T Zhonglian Zilliant Inc Zionex ZL Technologies Zoho Zoner Software Zucchetti Zycus ZyLAB North America LLC Zynapse Zyrion Subtotal 136, , , , Other 28, , , , Total 165, , , , Source: IDC, 2012 This study also includes revenue data for each of the three primary markets: AD&D, applications, and SIS. AD&D revenue is covered in Tables 5 7. Applications revenue is covered in Tables Similarly, SIS revenue is displayed in Tables For each of these primary markets, we provide a list of the top 50 vendors (by 2011 market share) and then list all vendors alphabetically with worldwide revenue and by geographic region. IDC calculates market share by dividing each vendor's 2011 software revenue by the total 2011 worldwide software revenue for the market sector analyzed. Rank is also provided and based on vendors with reported software revenue. A few of the vendors in last year's study either departed from the software business (or from a specific primary market segment) or were not able to identify software revenue; the result is a dash entry for 2011 revenue and "NA" for growth. Tables 5 13 are specific to primary markets rather than the total software market IDC #

70 TABLE 5 Worldwide Application Development and Deployment Software by Top 50 Vendors, Growth Rank Oracle 12, , , IBM 14, , , Microsoft 7, , , SAP 2, , , SAS 1, , , CA Technologies 1, , , ESRI , , HP 1, , , Software AG Teradata Fujitsu TIBCO Informatica SWIFT Adobe Compuware Autodesk Progress Software Corp Hitachi Micro Focus MicroStrategy GXS Intergraph BMC ACI Worldwide Pitney Bowes Software QlikTech InterSystems Corp Information Builders Inc Quest Software Pegasystems Amazon.com Inc Axway Serena Salesforce.com OpenText Google Inc Experian Bentley Systems Inc NEC Apple Actuate Corp Red Hat Rocket Software # IDC

71 TABLE 5 Worldwide Application Development and Deployment Software by Top 50 Vendors, Growth Rank Unisys Embarcadero Technologies Panorama Software Seeburger FICO (formerly Fair Isaac) Atlassian Subtotal 53, , , Other 10, , , Total 63, , , Source: IDC, 2012 TABLE 6 Worldwide Application Development and Deployment Software by Vendor, Growth Rank /n software Spatial D SAS AAM Technologies ABBYY 0.9 NA Accellion AccuRev ACI Worldwide Actipro Software Active Endpoints Inc ActiveState Software Inc Actuate Corp Adaptive Adobe Advanced Computer Software Advizor Solutions Agilense Alfabet Almog Software Industries Alpha Software Altibase Altova Amazon.com Inc ANGOSS Software International Ltd AOL/Mapquest IDC #

72 TABLE 6 Worldwide Application Development and Deployment Software by Vendor, Growth Rank Appcelerator Appfluent Technology Inc APPGEN Business Software Appian Appirio Appistry Apple Application Security Inc Arcplan ASG Aspera Aspose Asseco Group Atego Ateras Atlassian Attachmate Attunity Auraportal Autodesk Axway B2 Systems Inc Backbase BackOffice Associates Bentley Systems Inc Binarymission Technologies Bison Bitam Black Duck Software Inc BluePhoenix Solutions Blueprint BMC Bosch Software Innovations GmbH BP Logix BR Solutions Bradmark Technologies Inc Bungee Labs CA Technologies 1, , , Casewise Caspio CAST Software CDB CDC Corp CDNetworks Cincom Systems Inc Clear Methods Inc # IDC

73 TABLE 6 Worldwide Application Development and Deployment Software by Vendor, Growth Rank Cloudera CodeJock Software Codemesh CollabNet ComOps Component Factory Pty. Ltd ComponentArt ComponentOne ComponentSpace Composite Software Compuware Contour Components Cordys Coverity Curl Inc Dart Communications Data Expedition Data Foundations Inc Data Streams DataLever Corp Datawatch Corp dbase Dell Denodo Technologies Inc Desaware Developer Express Digia QT Commercial DMTI Spatial Inc Dundas Data Visualization Easylink Services ecminer Embarcadero Technologies EMC Empirix Empress Software Encirq ENEA EnterpriseDB Enterworks Eshbel 0.5 NA Esker Software 2.6 NA 361 espatial ESRI , , Etelos Inc EvolveWare Inc Exact IDC #

74 TABLE 6 Worldwide Application Development and Deployment Software by Vendor, Growth Rank Execplan EXEM Experian Extol EZLegacy FairCom Corp FFE Software Inc. (FirstSQL) FICO (formerly Fair Isaac) Fiorano Software Firestar Flexera Software Focus Softnet 0.5 NA FOR-CS Four Js Development Tools Inc Fujitsu Genuitec LLC GigaSpaces Global IDs Inc GlobalSCAPE GoldenSource Google Inc GrammaTech Inc GrapeCity Green Hills Software GT Software GXS Halo Technology Handysoft Hello2Morrow Hitachi HP 1, , , Hubspan Human Inference IBM 14, , , IBPhoenix Ideablade Imperva Inc Infinite Software Infor Informatica Information Builders Inc Infragistics Corp Ingres Corp InRule Technology InSoft OY Instantiations Inc # IDC

75 TABLE 6 Worldwide Application Development and Deployment Software by Vendor, Growth Rank Intalio Intel Corp IntelliCorp Inc Interactive Objects Interfacing Technologies Intergraph InterSystems Corp Intuit Invensys Iocomp Software Inc Ipswitch irise Jacada NA 362 JackBe JADE jbase JetBrains Jitterbit Joyent K Kalido Kapow Technologies Keynote Systems Inc Kingdee Klocwork Kofax Kognitio Kony Solutions KT Data KXEN Lanner Group Inc Laszlo Systems Liaison LongJump Longtop Group LynuxWorks Inc M2Soft Maia Intelligence Mainsoft Managed Methods Maninsoft (formerly Miracom I&C) Mashery Matisse MDQ Systems Mega International Mendix IDC #

76 TABLE 6 Worldwide Application Development and Deployment Software by Vendor, Growth Rank Mentor Graphics MetaCase Metaware Micro Focus Microsoft 7, , , MicroStrategy Mincom Ltd MindFusion Myriad NEC Netron Inc NetSuite Nevron Software Newgen Software Technologies Ltd Nexaweb Nimaya Nintex No Magic Inc Nolio Software Northgate Information Solutions NuBridges Object Connections ObjectFX Objectivity Inc One1 0.3 NA OpenConnect Systems OpenLink OpenText OPNET Oracle 12, , , Orchestra Networks Panorama Software Panorama View Software Corp Parasoft PCI Enterprises Pegasystems Perceptive Software Perforce Software Perpetuum Software Pervasive Software Inc Pitney Bowes Software PNMsoft Polaris Software Lab Polymita Prima Solutions # IDC

77 TABLE 6 Worldwide Application Development and Deployment Software by Vendor, Growth Rank Primeton Primeur Progress Software Corp Prolifics Protegrity PTC PureComponents QAD QlikTech Qualiware Quest Software Rally Software Development Corp Rebex Red Hat RemObjects Software Research In Motion Rocket Software Rogue Wave Software Rollbase Inc rpath Safe Software Inc Salesforce.com Samsung SDS Sand Technology SAP 2, , , SAS 1, , , Security Innovation Inc Seeburger Sencha Serena Servoy Siemens 26.0 NA 363 Signiant Silicon Graphics SIT-QAD Siveco Skyway Software SnapLogic SOA Software Inc Softbase Systems Software AG Software Engineering of America Software FX Solipsis Solix Soluciones-ar IDC #

78 TABLE 6 Worldwide Application Development and Deployment Software by Vendor, Growth Rank Sonoa Systems SourceIQ Inc South River Technologies Sparx Systems SPS Commerce Steema StrikeIron Inc Stringdata SunGard SWIFT Syncfusion Syncsort Systar SA abdultableau Software Talend Targit TechExcel Inc Technology One Telerik Teradata THBComponentware The Salamander Organization TIBCO Tibero TigerLogic TmaxSoft Tongtech TotalSoft TOTVS Transoft Trillium Software Troux Technologies Unicom Systems UNIFY Corp Unisys Venotion Technologies Veracode Verivo Versant Versata Visible Systems Corp Vision Solutions Inc VisionWare Vitria Technology VMware Webcab Components # IDC

79 TABLE 6 Worldwide Application Development and Deployment Software by Vendor, Growth Rank WebLayers Inc Wing Arc WISE itech Wizrom Wolf Frameworks Workday Inc WS XAware Inc Xceed XIGNITE Xpriori Yellowfin YouSendIt Zend Technologies Inc Zoho Zucchetti Zynapse Subtotal 56, , , Other 7, , , Total 63, , , Source: IDC, 2012 TABLE 7 Worldwide Application Development and Deployment Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide /n software Spatial D SAS AAM Technologies ABBYY Accellion AccuRev ACI Worldwide Actipro Software Active Endpoints Inc ActiveState Software Inc Actuate Corp Adaptive Adobe IDC #

80 TABLE 7 Worldwide Application Development and Deployment Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Advanced Computer Software Advizor Solutions Agilense Alfabet Almog Software Industries Alpha Software Altibase Altova Amazon.com Inc ANGOSS Software International Ltd AOL/Mapquest Appcelerator Appfluent Technology Inc APPGEN Business Software Appian Appirio Appistry Apple Application Security Inc Arcplan ASG Aspera Aspose Asseco Group Atego Ateras Atlassian Attachmate Attunity Auraportal Autodesk Axway B2 Systems Inc Backbase BackOffice Associates Bentley Systems Inc Binarymission Technologies Bison Bitam Black Duck Software Inc BluePhoenix Solutions Blueprint BMC # IDC

81 TABLE 7 Worldwide Application Development and Deployment Software by Vendor and Region, 2011 Bosch Software Innovations GmbH Americas EMEA APJ Worldwide BP Logix BR Solutions Bradmark Technologies Inc Bungee Labs CA Technologies 1, , Casewise Caspio CAST Software CDB CDC Corp CDNetworks Cincom Systems Inc Clear Methods Inc Cloudera CodeJock Software Codemesh CollabNet ComOps Component Factory Pty. Ltd ComponentArt ComponentOne ComponentSpace Composite Software Compuware Contour Components Cordys Coverity Curl Inc Dart Communications Data Expedition Data Foundations Inc Data Streams DataLever Corp Datawatch Corp dbase Dell Denodo Technologies Inc Desaware Developer Express Digia QT Commercial DMTI Spatial Inc Dundas Data Visualization Easylink Services IDC #

82 TABLE 7 Worldwide Application Development and Deployment Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide ecminer Embarcadero Technologies EMC Empirix Empress Software Encirq ENEA EnterpriseDB Enterworks Eshbel espatial ESRI , Etelos Inc EvolveWare Inc Exact Execplan EXEM Experian Extol EZLegacy FairCom Corp FFE Software Inc. (FirstSQL) FICO (formerly Fair Isaac) Fiorano Software Firestar Flexera Software Focus Softnet FOR-CS Four Js Development Tools Inc Fujitsu Genuitec LLC GigaSpaces Global IDs Inc GlobalSCAPE GoldenSource Google Inc GrammaTech Inc GrapeCity Green Hills Software GT Software GXS Halo Technology Handysoft Hello2Morrow Hitachi # IDC

83 TABLE 7 Worldwide Application Development and Deployment Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide HP , Hubspan Human Inference IBM 8, , , , IBPhoenix Ideablade Imperva Inc Infinite Software Infor Informatica Information Builders Inc Infragistics Corp Ingres Corp InRule Technology InSoft OY Instantiations Inc Intalio Intel Corp IntelliCorp Inc Interactive Objects Interfacing Technologies Intergraph InterSystems Corp Intuit Invensys Iocomp Software Inc Ipswitch irise JackBe JADE jbase JetBrains Jitterbit Joyent K Kalido Kapow Technologies Keynote Systems Inc Kingdee Klocwork Kofax Kognitio Kony Solutions KT Data KXEN IDC #

84 TABLE 7 Worldwide Application Development and Deployment Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Lanner Group Inc Laszlo Systems Liaison LongJump Longtop Group LynuxWorks Inc M2Soft Maia Intelligence Mainsoft Managed Methods Maninsoft (formerly Miracom I&C) Mashery Matisse MDQ Systems Mega International Mendix Mentor Graphics MetaCase Metaware Micro Focus Microsoft 3, , , , MicroStrategy Mincom Ltd MindFusion Myriad NEC Netron Inc NetSuite Nevron Software Newgen Software Technologies Ltd Nexaweb Nimaya Nintex No Magic Inc Nolio Software Northgate Information Solutions NuBridges Object Connections ObjectFX Objectivity Inc One OpenConnect Systems OpenLink # IDC

85 TABLE 7 Worldwide Application Development and Deployment Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide OpenText OPNET Oracle 7, , , , Orchestra Networks Panorama Software Panorama View Software Corp Parasoft PCI Enterprises Pegasystems Perceptive Software Perforce Software Perpetuum Software Pervasive Software Inc Pitney Bowes Software PNMsoft Polaris Software Lab Polymita Prima Solutions Primeton Primeur Progress Software Corp Prolifics Protegrity PTC PureComponents QAD QlikTech Qualiware Quest Software Rally Software Development Corp Rebex Red Hat RemObjects Software Research In Motion Rocket Software Rogue Wave Software Rollbase Inc rpath Safe Software Inc Salesforce.com Samsung SDS Sand Technology SAP 1, , , SAS , IDC #

86 TABLE 7 Worldwide Application Development and Deployment Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Security Innovation Inc Seeburger Sencha Serena Servoy Signiant Silicon Graphics SIT-QAD Siveco Skyway Software SnapLogic SOA Software Inc Softbase Systems Software AG Software Engineering of America Software FX Solipsis Solix Soluciones-ar Sonoa Systems SourceIQ Inc South River Technologies Sparx Systems SPS Commerce Steema StrikeIron Inc Stringdata SunGard SWIFT Syncfusion Syncsort Systar SA abdultableau Software Talend Targit TechExcel Inc Technology One Telerik Teradata THBComponentware The Salamander Organization TIBCO Tibero TigerLogic # IDC

87 TABLE 7 Worldwide Application Development and Deployment Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide TmaxSoft Tongtech TotalSoft TOTVS Transoft Trillium Software Troux Technologies Unicom Systems UNIFY Corp Unisys Venotion Technologies Veracode Verivo Versant Versata Visible Systems Corp Vision Solutions Inc VisionWare Vitria Technology VMware Webcab Components WebLayers Inc Wing Arc WISE itech Wizrom Wolf Frameworks Workday Inc WS XAware Inc Xceed XIGNITE Xpriori Yellowfin YouSendIt Zend Technologies Inc Zoho Zucchetti Zynapse Subtotal 34, , , , Other 4, , , Total 38, , , , Source: IDC, IDC #

88 TABLE 8 Worldwide Application Software by Top 50 Vendors, Growth Rank Microsoft 18, , , SAP 9, , , Oracle 7, , , IBM 3, , , Adobe 2, , , Intuit 2, , , Siemens 2, , , Infor 2, , , Dassault Systèmes 1, , , Sage 1, , , Salesforce.com 1, , , Autodesk 1, , , Activision Blizzard 1, , , Synopsys 1, , , SunGard 1, , , McKesson 1, , , Cisco 1, , , Cadence Design Systems , DATEV HP PTC Fujitsu Nuance Communications Inc Mentor Graphics Avaya Inc Electronic Arts SAS Cerner Ansys Inc OpenText Siemens Enterprise Communications TOTVS Fidelity National Kronos Inc Fiserv ADP Micros Systems Verint Systems Misys Medical Information Technology (Meditech) EMC Acision Constellation Software Inc Genesys Telecommunications Laboratories # IDC

89 TABLE 8 Worldwide Application Software by Top 50 Vendors, Growth Rank NICE Systems NEC FICO (formerly Fair Isaac) Allscripts UNIT Blackboard Subtotal 76, , , Other 56, , , Total 132, , , Source: IDC, 2012 TABLE 9 Worldwide Application Software by Vendor, Growth Rank 1C D Systems i Infotech M CS Abacus Research ABB Ltd ABBYY 30.2 NA Able Commerce Accela Access Accounting Accountpro Accruent Acision Actiance (formerly FaceTime) Activision Blizzard 1, , , Actuate Corp Aderant Aditro Admerex Adobe 2, , , ADP Advanced Computer Software Advanced Data Exchange Advent Software AFAS ERP Software AKuP Alcatel-Lucent IDC #

90 TABLE 9 Worldwide Application Software by Vendor, Growth Rank Aldata Solution Allegro Development Corp Allscripts Almog Software Industries Altair Engineering Inc Alterian Amano Cincinnati Amdocs American Software Ansys Inc APPGEN Business Software Apple Applied Computer Services (Hasib) Applied Materials Applied Systems Inc Applied Voice & Speech Technologies Arena Argo Data Resource Corp Argos Systems ARI Network Ariba Inc ASA International Ascentis ASCON ASG Asiainfo Asianet TP Aspect Software Aspel Aspen Technology Asseco Group Astea International Asure AT Kearney Procurement Solutions Atari ATENA UsÅ ugi Informatyczne i Finansowe Atlassian ATOSS Software Attachmate Autodesk 1, , , Autotask Auto-trol Technology Avaya Inc AVEVA Group Aviv Advanced Solutions # IDC

91 TABLE 9 Worldwide Application Software by Vendor, Growth Rank Awareness Axoft Ayanova (Ground Zero Tech-Works Inc.) BAS BasWare BDSIC BeaconIT Group Beeline Bematech Benner Solutions Bentley Systems Inc Beta Systems Software AG 22.6 NA 715 Bison Bit 5.1 NA BitDefender Biuro Projektowania Systemów Cyfrowych SA (BPSC SA) Blackbaud Blackboard BlueCielo ECM Solutions BlueKiwi BMC Bokesoft Bond International Boothroyd Dewhurst Bosch Software Innovations GmbH BPL Telecom Brainloop Inc Brainshark BravoSolution Bravura Brightcove BRITC Broadlane BroadVision Brooks Automation Bsoft CA Technologies Cactus Commerce Cadence Design Systems , CADMEN Calipso Callidus Software Inc Calypso Technology Cambar Software Campus Management Corp IDC #

92 TABLE 9 Worldwide Application Software by Vendor, Growth Rank Camstar Systems Inc CAS Software Cashtech Solutions Cav Systems CCH CCK Financial Solutions Ltd CDC Corp Cegedim Cegid Centric Software Century Software Ceridian Cerner Cezanne Software CGI Information Systems Chang Yi Channel Advisor Chase Cooper Ciel Cimatron Cincom Systems Inc Cisco 1, , , Citrix Civica Cleo Click Commerce Inc ClickSoftware CMstat CNC Software Inc Cognology Coheris Comarch SA Comax CombineNet Communispace Comptel CompuGroup Medical Computacion en Accion Computational Engineering Intl. Inc Compuware Comverse Concur Technologies Consensus Consona Constellation Software Inc Convergys # IDC

93 TABLE 9 Worldwide Application Software by Vendor, Growth Rank Coremedia Coretech-Diva Cornerstone OnDemand Cosmocom Creawor Critical Path Crown Computing CS&S CSB-System CSC Cyberdime Cybozu Inc Daptiv Dassault Systèmes 1, , , Data I/O Datawatch Corp DATEV Daumsoft Defontana Delcam Deltek Inc DemandTec Descartes Systems Dichain Diginet Digital River Inc Digital Ware DigiwinSoft DO2 Technologies DotNetNuke Drishti soft DSC Duzon Bizon Dynamacs Dynaware EAB Systems eabax ebanswers EBP ebworx Econintel Treasury Systems Inc e-conomic Ecteon Edifecs efuture IT EG egain IDC #

94 TABLE 9 Worldwide Application Software by Vendor, Growth Rank Elcom International Inc Electronic Arts Element K vision EMC Emptoris Enigma Enterworks Entigo Epicor Software Corp EPiServer eplus ERI Bancaire Escalate Retail Eshbel 11.0 NA Esker Software e-spirit AG EVault (A Seagate Company) EVER TEAM Exa Corp Exact Excel Force Excel Technology Execplan Expandable Software Inc Experian Explorer Software Inc Eze Castle Software Feya FICO (formerly Fair Isaac) Fidelity National Fidessa Fieldglass Financial Sciences Corp Financial Software Systems Finestra First Apex Technologies Fiserv FlexiInternational Software Flexline FlexSystem Focus Softnet 7.2 NA Formis Bass Formula Telecom Solutions Foundation for Windows Founder Order FPX # IDC

95 TABLE 9 Worldwide Application Software by Vendor, Growth Rank Freewill Solutions Frontier FrontRange Solutions Inc Fujian Apexsoft Fujitsu Galactica Gavel and Gown Software GD GE Intelligent Platforms Gemmar Systems International Inc Genesys Telecommunications Laboratories Geniustec Geometric Technologies (formerly TekSoft) GFI Informatique GHX Gitbuy Global Services Global Software Inc Golden Yikang Google Inc Gores Technology Group Greentree Gruppo Formula GSE Systems GXS Haansoft Inc Halo Technology Halogen Software Handysoft HansaWorld HardDollar Hashavshevet 11.1 NA Healy Hudson Heinsohn HeJia Hi Sun High Line Corp Hitachi HMA Group Hogia Group Hollybridge HP HR Access Huahai Medical Info Huawei IDC #

96 TABLE 9 Worldwide Application Software by Vendor, Growth Rank Hubwoo Hughes Systique Hyland Software Hyphen Hyphen Solutions IAS 0.0 NA IBA Health IBM 3, , , IBM Application Solutions IBS ICG Commerce icims IDOX Group PLC IFCA IFS IHS Inc imany IMAS 0.1 NA 716 Immersive Design Inc Infor 2, , , Informat Infosys INgage Networks Innotas Innovation Group Inspur INSTEC Inswave Intec Integrated Support Systems Intelisis Interactive Intelligence Inc InterCall Intergraph Intershop Communications Intersoft InterSystems Corp IntraLearn Software Corp IntraLinks Intuit 2, , , Invensys Investment Technology Group I-ON Communications Ipswitch IQ Navigator Iquest IRIS Software # IDC

97 TABLE 9 Worldwide Application Software by Vendor, Growth Rank IronCAD ISIS Papyrus Island Pacific Inc ISO Enterprise ISU Ubcare Itron Inc Jacada 16.9 NA Jack Henry & Associates JDA Software Jeeves Information Systems Jenzabar Jesta I.S Jive Software Julong Info Justsystem Corp Kaba Benzing Kana Kapow Technologies Kenexa Ketera Kewill Systems Kicom Kingdee Kingsoft Kingstar Winning Kofax Kongyoung Dbm Koreawisenut Kronos Inc KSS Kubotek Kyriba LANDesk Software Lanner Group Inc Laserfiche Lefebvre Software Levi, Ray & Shoup Inc LexisNexis Interface Software Inc Likom Lithium Live World LivePerson LMS International Logo Business Solutions Lombard Risk Management Longtop Group Lumesse IDC #

98 TABLE 9 Worldwide Application Software by Vendor, Growth Rank Lumis Lumley Technology Macrologic Magma Design Automation Main Sequence MaintenanceNet Mamut Management Controls Inc Management Dynamics Manager Manhattan Associates Matrikon (a division of Honeywell) Maximizer Software Inc Maxwell Systems MCBA McKesson 1, , , MCS Medical Information Technology (Meditech) Medidata Solutions Mediopia Megacenter Mentor Graphics Merced Systems Merge Meridian Systems Meta Micro Focus Micropay Micros Systems Microsoft 18, , , Midland HR & Payroll Solutions Mincom Ltd Miracom Missler Software Misys Moai Technologies Inc Model N MSC Software Multima Corp Murex MYOB Ltd Myriad Mzinga N2N Nari NASDAQ OMX # IDC

99 TABLE 9 Worldwide Application Software by Vendor, Growth Rank Navita NEC Nedstat Nelito Systems Nemetschek Neogrid Neolane NeoSystems NetRatings (Nielsen Online) Netsis NetSuite NeuralSoft NeuSoft New & Grand NEW Customer Service Newgen Software Technologies Ltd NewsGator Newsky Newtron Nexant Nextrials Nextstep Infotech Nexus NICE Systems Nobscot Nomura Research Institute Ltd Nortel Networks NA 717 Northgate Information Solutions NOW Solutions LLC Nuance Communications Inc Nucleus Software Nuri Telecom Nuview Systems Inc OBIC Business Consultants Co. Ltd OBIC Co. Ltd Objective Ofisis Oki Electric Industry Omega One Network One Online Resources Corp Onventis Open Solutions Inc Open Systems Holding Corp IDC #

100 TABLE 9 Worldwide Application Software by Vendor, Growth Rank OpenText Oracle 7, , , Orange HR Orbium OSISoft Outcome P2 Energy Solutions Pansky Pansoft Parature Inc PartsRiver-Saqqara Paychex PayGlobal PDS Pearson Pegasystems PenSoft Penta Technologies Peoplefluent Perceptive Software Perfect Commerce Personal & Informatik Pitney Bowes Software Planisware Planview Platsoft Plusoft Poet Software Corp Pointwise Inc Powerise Powerlan Previsor Princeton Financial Sys. Inc proalpha Prodacapo ProfitLine Promantek Pronto ProQuest PROS Pricing Solutions PSI PTC QAD Quadramed Quest Software QuickArrow RainMaker Software # IDC

101 TABLE 9 Worldwide Application Software by Vendor, Growth Rank Ramco Systems Random readhc ReadSoft Realization Technologies Rearden Commerce Inc Recommind Red Hat RedEye RedPrairie Replicon Responsys Retalix Reval Revionics RightNow Technologies Inc Rocket Software Royal Systems S Saba Software Inc Sage 1, , , Saint Salesforce.com 1, , , Samsung SDS SAP 9, , , SAS ScheduleSoft SciQuest SDC SDL International Sedona Corp Selectica Inc Selligent Sendmail Senior Com Senior Sistemas Serena ServiceNow 1.0 NA Shanghai Huateng Shinewave Shing Hang SHL Group Siemens 2, , , Siemens Enterprise Communications Silicon Graphics SilkRoad IDC #

102 TABLE 9 Worldwide Application Software by Vendor, Growth Rank Silver Net Computer Systems Ltd Silverlake SimCorp Singlee Siquel Sistemas Bejerman Sitecore SIT-QAD Siveco SkillSoft Slingshot SmartSoftware Inc SMS Smyth Systems Socialtext Soft Yazilim Softbrain Co. Ltd SofTech Inc Softland Softpower Software Innovation Solipsis Soluciones-ar Sonda Sopheon Sopra Group Spectra Spigit SQL Software SS&C Technologies Star Storage Strategy Stringdata Successfactors Sumisho Computer Systems Corp Summit SumTotal Sunfish SunGard 1, , , Sunyard Superdata SuperOffice Supplychain Connect SupplyOn Swisslog Symantec Synopsys 1, , , # IDC

103 TABLE 9 Worldwide Application Software by Vendor, Growth Rank Synygy Syspro Systex Tagetik Take Solutions Talentsoft Taleo Talisma Tally Tavant Technologies TCS Tealeaf Technology Technology One Tecsys Inc TEDS Telesoft Telligent TELUS (Emergis) Temenos Teradata Think Thomson Reuters Tian Jian TIBCO Tibersoft Timecentre TmaxSoft Tomax Corp Top Image Systems Torex Toshiba Solutions Corp Total Logistics TotalSoft TOTVS Trace One Trintech Group PLC Triple Point Technology Trisunwyse TRS TSS TXT e-solutions Tyler Technologies UFIDA Ultimate Software Unanet Technologies Unicom Systems Unisys IDC #

104 TABLE 9 Worldwide Application Software by Vendor, Growth Rank UNIT update software Upsidesoft Vanguard Vendavo Verint Systems Versata Versys Vertex Inc ViaPeople Viewpoint Construction Software Visma Vivisimo VMware Wall Street Systems WebTrends White Information Networking Win Estimator Inc Wipro Healthcare WISE itech Wizrom WMSL Wolters Kluwer Financial Services Workcube 0.3 NA Workday Inc WorkForce Software Works Applications Co. Ltd Workstream Xactly Corp Xnear xtuple Yardi Younglimwon Softlab Zhifang S&T Zhonglian Zilliant Inc Zionex Zoho Zoner Software Zucchetti Zycus ZyLAB North America LLC Subtotal 101, , , Other 31, , , Total 132, , , Source: IDC, # IDC

105 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide 1C D Systems i Infotech M CS Abacus Research ABB Ltd ABBYY Able Commerce Accela Access Accounting Accountpro Accruent Acision Actiance (formerly FaceTime) Activision Blizzard , Actuate Corp Aderant Aditro Admerex Adobe 1, , , ADP Advanced Computer Software Advanced Data Exchange Advent Software AFAS ERP Software AKuP Alcatel-Lucent Aldata Solution Allegro Development Corp Allscripts Almog Software Industries Altair Engineering Inc Alterian Amano Cincinnati Amdocs American Software Ansys Inc APPGEN Business Software Apple Applied Computer Services (Hasib) Applied Materials Applied Systems Inc IDC #

106 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Applied Voice & Speech Technologies Arena Argo Data Resource Corp Argos Systems ARI Network Ariba Inc ASA International Ascentis ASCON ASG Asiainfo Asianet TP Aspect Software Aspel Aspen Technology Asseco Group Astea International Asure AT Kearney Procurement Solutions Atari ATENA UsÅ ugi Informatyczne i Finansowe Atlassian ATOSS Software Attachmate Autodesk , Autotask Auto-trol Technology Avaya Inc AVEVA Group Aviv Advanced Solutions Awareness Axoft Ayanova (Ground Zero Tech Works Inc.) BAS BasWare BDSIC BeaconIT Group Beeline Bematech Benner Solutions Bentley Systems Inc Bison # IDC

107 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Bit BitDefender Biuro Projektowania Systemów Cyfrowych SA (BPSC SA) Blackbaud Blackboard BlueCielo ECM Solutions BlueKiwi BMC Bokesoft Bond International Boothroyd Dewhurst Bosch Software Innovations GmbH BPL Telecom Brainloop Inc Brainshark BravoSolution Bravura Brightcove BRITC Broadlane BroadVision Brooks Automation Bsoft CA Technologies Cactus Commerce Cadence Design Systems , CADMEN Calipso Callidus Software Inc Calypso Technology Cambar Software Campus Management Corp Camstar Systems Inc CAS Software Cashtech Solutions Cav Systems CCH CCK Financial Solutions Ltd CDC Corp Cegedim Cegid Centric Software Century Software Ceridian IDC #

108 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Cerner Cezanne Software CGI Information Systems Chang Yi Channel Advisor Chase Cooper Ciel Cimatron Cincom Systems Inc Cisco , Citrix Civica Cleo Click Commerce Inc ClickSoftware CMstat CNC Software Inc Cognology Coheris Comarch SA Comax CombineNet Communispace Comptel CompuGroup Medical Computacion en Accion Computational Engineering Intl Inc. Compuware Comverse Concur Technologies Consensus Consona Constellation Software Inc Convergys Coremedia Coretech-Diva Cornerstone OnDemand Cosmocom Creawor Critical Path Crown Computing CS&S CSB-System CSC Cyberdime # IDC

109 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Cybozu Inc Daptiv Dassault Systèmes , , Data I/O Datawatch Corp DATEV Daumsoft Defontana Delcam Deltek Inc DemandTec Descartes Systems Dichain Diginet Digital River Inc Digital Ware DigiwinSoft DO2 Technologies DotNetNuke Drishti soft DSC Duzon Bizon Dynamacs Dynaware EAB Systems eabax ebanswers EBP ebworx Econintel Treasury Systems Inc. e-conomic Ecteon Edifecs efuture IT EG egain Elcom International Inc Electronic Arts Element K vision EMC Emptoris Enigma Enterworks Entigo IDC #

110 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Epicor Software Corp EPiServer eplus ERI Bancaire Escalate Retail Eshbel Esker Software e-spirit AG EVault (A Seagate Company) EVER TEAM Exa Corp Exact Excel Force Excel Technology Execplan Expandable Software Inc Experian Explorer Software Inc Eze Castle Software Feya FICO (formerly Fair Isaac) Fidelity National Fidessa Fieldglass Financial Sciences Corp Financial Software Systems Finestra First Apex Technologies Fiserv FlexiInternational Software Flexline FlexSystem Focus Softnet Formis Bass Formula Telecom Solutions Foundation for Windows Founder Order FPX Freewill Solutions Frontier FrontRange Solutions Inc Fujian Apexsoft Fujitsu Galactica Gavel and Gown Software GD # IDC

111 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide GE Intelligent Platforms Gemmar Systems International Inc. Genesys Telecommunications Laboratories Geniustec Geometric Technologies (formerly TekSoft) GFI Informatique GHX Gitbuy Global Services Global Software Inc Golden Yikang Google Inc Gores Technology Group Greentree Gruppo Formula GSE Systems GXS Haansoft Inc Halo Technology Halogen Software Handysoft HansaWorld HardDollar Hashavshevet Healy Hudson Heinsohn HeJia Hi Sun High Line Corp Hitachi HMA Group Hogia Group Hollybridge HP HR Access Huahai Medical Info Huawei Hubwoo Hughes Systique Hyland Software Hyphen Hyphen Solutions IAS IDC #

112 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide IBA Health IBM 1, , , IBM Application Solutions IBS ICG Commerce icims IDOX Group PLC IFCA IFS IHS Inc imany Immersive Design Inc Infor 1, , Informat Infosys INgage Networks Innotas Innovation Group Inspur INSTEC Inswave Intec Integrated Support Systems Intelisis Interactive Intelligence Inc InterCall Intergraph Intershop Communications Intersoft InterSystems Corp IntraLearn Software Corp IntraLinks Intuit 2, , Invensys Investment Technology Group I-ON Communications Ipswitch IQ Navigator Iquest IRIS Software IronCAD ISIS Papyrus Island Pacific Inc ISO Enterprise ISU Ubcare Itron Inc # IDC

113 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Jacada Jack Henry & Associates JDA Software Jeeves Information Systems Jenzabar Jesta I.S Jive Software Julong Info Justsystem Corp Kaba Benzing Kana Kapow Technologies Kenexa Ketera Kewill Systems Kicom Kingdee Kingsoft Kingstar Winning Kofax Kongyoung Dbm Koreawisenut Kronos Inc KSS Kubotek Kyriba LANDesk Software Lanner Group Inc Laserfiche Lefebvre Software Levi, Ray & Shoup Inc LexisNexis Interface Software Inc. Likom Lithium Live World LivePerson LMS International Logo Business Solutions Lombard Risk Management Longtop Group Lumesse Lumis Lumley Technology Macrologic Magma Design Automation IDC #

114 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Main Sequence MaintenanceNet Mamut Management Controls Inc Management Dynamics Manager Manhattan Associates Matrikon (a division of Honeywell) Maximizer Software Inc Maxwell Systems MCBA McKesson 1, , MCS Medical Information Technology (Meditech) Medidata Solutions Mediopia Megacenter Mentor Graphics Merced Systems Merge Meridian Systems Meta Micro Focus Micropay Micros Systems Microsoft 10, , , , Midland HR & Payroll Solutions Mincom Ltd Miracom Missler Software Misys Moai Technologies Inc Model N MSC Software Multima Corp Murex MYOB Ltd Myriad Mzinga N2N Nari NASDAQ OMX Navita NEC # IDC

115 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Nedstat Nelito Systems Nemetschek Neogrid Neolane NeoSystems NetRatings (Nielsen Online) Netsis NetSuite NeuralSoft NeuSoft New & Grand NEW Customer Service Newgen Software Technologies Ltd. NewsGator Newsky Newtron Nexant Nextrials Nextstep Infotech Nexus NICE Systems Nobscot Nomura Research Institute Ltd Northgate Information Solutions NOW Solutions LLC Nuance Communications Inc Nucleus Software Nuri Telecom Nuview Systems Inc OBIC Business Consultants Co Ltd. OBIC Co. Ltd Objective Ofisis Oki Electric Industry Omega One Network One Online Resources Corp Onventis Open Solutions Inc Open Systems Holding Corp OpenText Oracle 5, , , , IDC #

116 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Orange HR Orbium OSISoft Outcome P2 Energy Solutions Pansky Pansoft Parature Inc PartsRiver-Saqqara Paychex PayGlobal PDS Pearson Pegasystems PenSoft Penta Technologies Peoplefluent Perceptive Software Perfect Commerce Personal & Informatik Pitney Bowes Software Planisware Planview Platsoft Plusoft Poet Software Corp Pointwise Inc Powerise Powerlan Previsor Princeton Financial Sys. Inc proalpha Prodacapo ProfitLine Promantek Pronto ProQuest PROS Pricing Solutions PSI PTC QAD Quadramed Quest Software QuickArrow RainMaker Software Ramco Systems # IDC

117 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Random readhc ReadSoft Realization Technologies Rearden Commerce Inc Recommind Red Hat RedEye RedPrairie Replicon Responsys Retalix Reval Revionics RightNow Technologies Inc Rocket Software Royal Systems S Saba Software Inc Sage , , Saint Salesforce.com 1, , Samsung SDS SAP 3, , , , SAS ScheduleSoft SciQuest SDC SDL International Sedona Corp Selectica Inc Selligent Sendmail Senior Com Senior Sistemas Serena ServiceNow Shanghai Huateng Shinewave Shing Hang SHL Group Siemens 1, , Siemens Enterprise Communications Silicon Graphics SilkRoad IDC #

118 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Silver Net Computer Systems Ltd. Silverlake SimCorp Singlee Siquel Sistemas Bejerman Sitecore SIT-QAD Siveco SkillSoft Slingshot SmartSoftware Inc SMS Smyth Systems Socialtext Soft Yazilim Softbrain Co. Ltd SofTech Inc Softland Softpower Software Innovation Solipsis Soluciones-ar Sonda Sopheon Sopra Group Spectra Spigit SQL Software SS&C Technologies Star Storage Strategy Stringdata Successfactors Sumisho Computer Systems Corp. Summit SumTotal Sunfish SunGard 1, , Sunyard Superdata SuperOffice Supplychain Connect SupplyOn # IDC

119 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Swisslog Symantec Synopsys , Synygy Syspro Systex Tagetik Take Solutions Talentsoft Taleo Talisma Tally Tavant Technologies TCS Tealeaf Technology Technology One Tecsys Inc TEDS Telesoft Telligent TELUS (Emergis) Temenos Teradata Think Thomson Reuters Tian Jian TIBCO Tibersoft Timecentre TmaxSoft Tomax Corp Top Image Systems Torex Toshiba Solutions Corp Total Logistics TotalSoft TOTVS Trace One Trintech Group PLC Triple Point Technology Trisunwyse TRS TSS TXT e-solutions Tyler Technologies UFIDA IDC #

120 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Ultimate Software Unanet Technologies Unicom Systems Unisys UNIT update software Upsidesoft Vanguard Vendavo Verint Systems Versata Versys Vertex Inc ViaPeople Viewpoint Construction Software Visma Vivisimo VMware Wall Street Systems WebTrends White Information Networking Win Estimator Inc Wipro Healthcare WISE itech Wizrom WMSL Wolters Kluwer Financial Services Workcube Workday Inc WorkForce Software Works Applications Co. Ltd Workstream Xactly Corp Xnear xtuple Yardi Younglimwon Softlab Zhifang S&T Zhonglian Zilliant Inc Zionex Zoho Zoner Software # IDC

121 TABLE 10 Worldwide Application Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Zucchetti Zycus ZyLAB North America LLC Subtotal 61, , , , Other 19, , , , Total 81, , , , Source: IDC, 2012 TABLE 11 Worldwide System Infrastructure Software by Top 50 Vendors, Growth Rank Microsoft 23, , , IBM 7, , , Symantec 5, , , EMC 3, , , HP 3, , , VMware 1, , , CA Technologies 2, , , Intel Corp. 1, , , BMC 1, , , Citrix 1, , , Fujitsu 1, , , NetApp 1, , , Hitachi 1, , , Trend Micro 1, , , NEC , Attachmate Apple Red Hat Oracle Kaspersky Lab Quest Software HDS Cisco Sophos CommVault Check Point Software Technologies SafeNet Inc Research In Motion Compuware IDC #

122 TABLE 11 Worldwide System Infrastructure Software by Top 50 Vendors, Growth Rank Adobe Websense AVG Technologies (formerly Grisoft) F-Secure Corp ESET Solarwinds Alcatel-Lucent Dell Vision Solutions Inc LANDesk Software Panda Security Unisys OpenText Bull SAS ASG Acronis Webroot Kaseya Nomura Research Institute Ltd Google Inc LogMeIn Inc Subtotal 66, , , Other 10, , , Total 77, , , Source: IDC, 2012 TABLE 12 Worldwide System Infrastructure Software by Vendor, Growth Rank ABC Systems Abiquo Accelops Acronis Actiance (formerly FaceTime) Adaptive 10.5 NA Adaptive Computing Adobe Advanced Systems Concepts Ahnlab Inc Alcatel-Lucent # IDC

123 TABLE 12 Worldwide System Infrastructure Software by Vendor, Growth Rank Alloy Software Alps System Integration AppDynamics Apple Aranda Software ASG Atempo Attachmate Avast Software Avaya Inc AVG Technologies (formerly Grisoft) Axios Systems Axway B & L Associates BackOffice Associates Balabit Barracuda Beta Systems Software AG Birdstep Technology BitDefender NA Blue Coat Bluestripe Software BMC 1, , , Bradmark Technologies Inc Brainzsquare BSP Bull SAS C2C CA Technologies 2, , , Canon IT Solutions CFEngine 2.0 NA Check Point Software Technologies CiRBA Cisco Citrix 1, , , Comarch SA CommVault Compuware Correlsense Courion Corp Critical Path CS2C CyberOne 2.2 NA 264 Data Global (formerly GFT Inboxx) DataCore Software Datawatch Corp IDC #

124 TABLE 12 Worldwide System Infrastructure Software by Vendor, Growth Rank Dell Digicert Digital Arts Diskeeper Corp Dr.Web 38.3 NA Dream Security DynamicOps EastSoft eg Innovations Egenera Inc eglobal System eiq Networks Inc Embarcadero Technologies Embotics EMC 3, , , Empirix ENEA Enterasys Networks Inc Entrust Inc ESET Esker Software Eurosoft (UK) EVault (A Seagate Company) Falconstor Software Inc Fasoo.com Fenestrae BV Flexera Software Fortinet FrontRange Solutions Inc F-Secure Corp Fujitsu 1, , , Gale Technologies Gemalto Global Relay Google Inc Green Hills Software GT Software Guanqun Jinchen Guidance Hauri Inc HDS Help/Systems Heroix Corp HID Global Hitachi 1, , , Hornbill Systems Ltd HP 3, , , # IDC

125 TABLE 12 Worldwide System Infrastructure Software by Vendor, Growth Rank Huawei IBM 7, , , Inca Internet Infosec InfoTel Corp InfoVista Initech Integrated Research (DBA Prognosis) Intel Corp. 1, , , Ipswitch ISIS Papyrus ivirtua Jiangmin JiranSoft JIT Kaavo Kaseya Kaspersky Lab Kaspersky Lab China - JV 58.1 NA 265 Keynote Systems Inc Keyware Kingsoft Kofax Ksign LANDesk Software Layer 7 Technologies Levi, Ray & Shoup Inc LiveOffice LogMeIn Inc Lumension Security LynuxWorks Inc M86 Security ManageIQ Mandriva MarkAny Matrix Mentor Graphics Metron Technology Ltd. AG Microsoft 23, , , Mimecast Multima Corp ncircle NEC , NetApp 1, , , netevidence netforensics IDC #

126 TABLE 12 Worldwide System Infrastructure Software by Vendor, Growth Rank Netop Solutions Netsecure Technology Netuitive New Relic 14.0 NA NICSTECH Nilesoft Nimbula 1.0 NA nkia Nolio Software Nomura Research Institute Ltd Norman ASA Nortel Networks 58.8 NA 266 NovaStor NsFocus NuBridges Numara Software Nuri Telecom Omtool Ltd OpenText OPNET Opscode Optier Oracle ORSYP SA Oullim Information Technology Panda Security Parallels Parature Inc Penta Security Systems Platform Computing Plus Technologies Precise Software Primeur Progress Software Corp Proofpoint Puppet Labs 2.5 NA Quality Corp Qualys Quest Software Rapid Raxco RealNetworks Inc Red Flag Software Co. Ltd Red Hat Redwood Research In Motion Resonate Inc # IDC

127 TABLE 12 Worldwide System Infrastructure Software by Vendor, Growth Rank Rightscale Rising Rocket Software SafeNet Inc SAP SAS ScienceLogic SDC 0.3 NA Secuve ServiceNow SEVEN Networks Inc SGA Shanghai Koal Siemens 32.0 NA 267 Sightline Systems Silicon Graphics Skybox Security SOA Software Inc SoftCamp Softforum SoftRun 2.8 NA 268 Software Engineering of America Solarwinds Solipsis Sophos SourceFire Star Storage SteelEye Technology Inc. (SIOS) Stonebranch Stringdata SumTotal SupportSoft Symantec 5, , , Syncsort Tealeaf Technology Teamquest Corp TechExcel Inc Tectia TIBCO TOTVS Trend Micro 1, , , Tripwire Inc Trustwave Turbolinux Inc UC Ultrapower Unet System IDC #

128 TABLE 12 Worldwide System Infrastructure Software by Vendor, Growth Rank Unicom Systems UNIFY Corp Unisys Uptime Software USU Software AG Vasco VBA NA 269 Veeam Venus Tec Versata Vision Solutions Inc VMTurbo 2.5 NA VMware 1, , , Warevalley Waterford Technologies Wavelink Corp Webroot Websense Webspy WINS Technet Zenoss ZL Technologies Zoho Zucchetti Zyrion Subtotal 70, , , Other 6, , , Total 77, , , Source: IDC, 2012 TABLE 13 Worldwide System Infrastructure Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide ABC Systems Abiquo Accelops Acronis Actiance (formerly FaceTime) Adaptive Adaptive Computing # IDC

129 TABLE 13 Worldwide System Infrastructure Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Adobe Advanced Systems Concepts Ahnlab Inc Alcatel-Lucent Alloy Software Alps System Integration AppDynamics Apple Aranda Software ASG Atempo Attachmate Avast Software Avaya Inc AVG Technologies (formerly Grisoft) Axios Systems Axway B & L Associates BackOffice Associates Balabit Barracuda Beta Systems Software AG Birdstep Technology BitDefender Blue Coat Bluestripe Software BMC , Bradmark Technologies Inc Brainzsquare BSP Bull SAS C2C CA Technologies 1, , Canon IT Solutions CFEngine Check Point Software Technologies CiRBA Cisco Citrix , Comarch SA CommVault Compuware Correlsense IDC #

130 TABLE 13 Worldwide System Infrastructure Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Courion Corp Critical Path CS2C Data Global (formerly GFT Inboxx) DataCore Software Datawatch Corp Dell Digicert Digital Arts Diskeeper Corp Dr.Web Dream Security DynamicOps EastSoft eg Innovations Egenera Inc eglobal System eiq Networks Inc Embarcadero Technologies Embotics EMC 2, , , Empirix ENEA Enterasys Networks Inc Entrust Inc ESET Esker Software Eurosoft (UK) EVault (A Seagate Company) Falconstor Software Inc Fasoo.com Fenestrae BV Flexera Software Fortinet FrontRange Solutions Inc F-Secure Corp Fujitsu , , Gale Technologies Gemalto Global Relay Google Inc Green Hills Software GT Software Guanqun Jinchen # IDC

131 TABLE 13 Worldwide System Infrastructure Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Guidance Hauri Inc HDS Help/Systems Heroix Corp HID Global Hitachi , , Hornbill Systems Ltd HP 1, , , Huawei IBM 3, , , , Inca Internet Infosec InfoTel Corp InfoVista Initech Integrated Research (DBA Prognosis) Intel Corp. 1, , Ipswitch ISIS Papyrus ivirtua Jiangmin JiranSoft JIT Kaavo Kaseya Kaspersky Lab Keynote Systems Inc Keyware Kingsoft Kofax Ksign LANDesk Software Layer 7 Technologies Levi, Ray & Shoup Inc LiveOffice LogMeIn Inc Lumension Security LynuxWorks Inc M86 Security ManageIQ Mandriva MarkAny Matrix IDC #

132 TABLE 13 Worldwide System Infrastructure Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Mentor Graphics Metron Technology Ltd. AG Microsoft 12, , , , Mimecast Multima Corp ncircle NEC , NetApp , netevidence netforensics Netop Solutions Netsecure Technology Netuitive New Relic NICSTECH Nilesoft Nimbula nkia Nolio Software Nomura Research Institute Ltd Norman ASA NovaStor NsFocus NuBridges Numara Software Nuri Telecom Omtool Ltd OpenText OPNET Opscode Optier Oracle ORSYP SA Oullim Information Technology Panda Security Parallels Parature Inc Penta Security Systems Platform Computing Plus Technologies Precise Software Primeur Progress Software Corp Proofpoint Puppet Labs # IDC

133 TABLE 13 Worldwide System Infrastructure Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Quality Corp Qualys Quest Software Rapid Raxco RealNetworks Inc Red Flag Software Co. Ltd Red Hat Redwood Research In Motion Resonate Inc Rightscale Rising Rocket Software SafeNet Inc SAP SAS ScienceLogic SDC Secuve ServiceNow SEVEN Networks Inc SGA Shanghai Koal Sightline Systems Silicon Graphics Skybox Security SOA Software Inc SoftCamp Softforum Software Engineering of America Solarwinds Solipsis Sophos SourceFire Star Storage SteelEye Technology Inc. (SIOS) Stonebranch Stringdata SumTotal SupportSoft Symantec 3, , , , Syncsort IDC #

134 TABLE 13 Worldwide System Infrastructure Software by Vendor and Region, 2011 Americas EMEA APJ Worldwide Tealeaf Technology Teamquest Corp TechExcel Inc Tectia TIBCO TOTVS Trend Micro , Tripwire Inc Trustwave Turbolinux Inc UC Ultrapower Unet System Unicom Systems UNIFY Corp Unisys Uptime Software USU Software AG Vasco Veeam Venus Tec Versata Vision Solutions Inc VMTurbo VMware 1, , Warevalley Waterford Technologies Wavelink Corp Webroot Websense Webspy WINS Technet Zenoss ZL Technologies Zoho Zucchetti Zyrion Subtotal 40, , , , Other 4, , , , Total 45, , , , Source: IDC, # IDC

135 Performance of Leading Vendors in 2011 Microsoft, IBM, Oracle, SAP, Symantec, HP, EMC, CA Technologies, Adobe, and VMware were the 10 leading vendors in the worldwide software market in There were two changes in ranking from 2010 for these leading vendors. One was HP and Symantec swapping the number 5 and number 6 spots and the other was VMware replacing Fujitsu in the number 10 spot. Collectively, these 10 leading vendors account for 48.4% of total worldwide packaged software revenue. Additionally: It is important to note that the 2010 rankings are based on data presented in this study (refer back to Table 2), not on what was published last year, because divestitures, mergers and acquisitions, and other updated information invalidate comparisons using the 2010 data from previous studies. See Appendix A for information regarding the treatment and impact of currency exchange rates on the data contained in this study. Top 50 Vendors' s of the Worldwide Software Market by Operating Environment Table 14 presents the top 50 software vendors worldwide by total software revenue segmented by major operating environments. For situations in which packages are licensed to multiple platforms, IDC allocates revenue to the primary server platform, thus potentially understating client-side revenue, particularly in the applications primary market. TABLE 14 Worldwide Packaged Software by Top 50 Vendors and Operating Environment, 2011 Mainframe Unix Linux/other open source Windows 32 and 64 Other Total Rank Microsoft , , , , IBM 9, , , , , , Oracle , , , , SAP , , , , Symantec 0.8 1, , , HP , , , EMC , , , , CA Technologies 2, , , Adobe , , VMware , , Fujitsu , , SAS , , Intuit , , IDC #

136 TABLE 14 Worldwide Packaged Software by Top 50 Vendors and Operating Environment, 2011 Mainframe Unix Linux/other open source Windows 32 and 64 Other Total Rank Siemens , Infor , , Dassault Systèmes , , Autodesk , , Salesforce.com , Intel Corp , , BMC , Hitachi , Sage , , Cisco , , Citrix , , NEC , Activision Blizzard 1, , SunGard , Synopsys , McKesson , Apple 0.0 1, , NetApp , Trend Micro , , ESRI , Attachmate , Cadence Design Systems , Teradata OpenText DATEV PTC Software AG Red Hat Mentor Graphics Avaya Inc Nuance Communications Inc Quest Software Compuware Electronic Arts TIBCO Cerner Ansys Inc Subtotal 17, , , , , ,019.7 Other 7, , , , , ,770.5 Total 24, , , , , ,790.1 Source: IDC, # IDC

137 FUTURE OUTLOOK Forecast and Assumptions Table 15 lists the top 3 assumptions, and Table 16 summarizes the general underlying assumptions used to develop the market forecasts. TABLE 15 Top 3 Assumptions for the Worldwide Software Market, Market Force IDC Assumption Significance Changes to This Assumption That Could Affect Current Forecast Comments Economy IDC assumes that the global economy will be broadly stable but tepid in 2012, with the crisis in Western Europe casting a shadow. Worldwide GDP growth will be around 2.5%, weighed down by Europe. Short-term prospects for the U.S. economy have improved a little since CY 4Q11, and Japan will continue its recovery from the earthquake and tsunami. In Western Europe, the economy will flatline at 0% because of weak business and consumer confidence and the impact of austerity measures. Some countries in Europe have already entered a recession, and more countries could follow. Emerging markets have so far remained relatively resilient, but a downside scenario (unraveling of the European single currency) could derail momentum in all regions. Given the interrelationships among regions, economic instability because of the debt crisis in Europe puts a risk not just for the regional forecasts but for other regions as well. An upside change could enhance software spending by improving IT expenditures (including software) and bolstering consumer confidence. A downside change (e.g., a worsening of the sovereign debt crisis in Western Europe) could have the opposite effect. Given global economic uncertainties, it seems that the software boom of the post-2008 period will start a period of moderation in That is, we will have reached an inflection point in the rate of software growth IDC #

138 TABLE 15 Top 3 Assumptions for the Worldwide Software Market, Market Force IDC Assumption Significance Changes to This Assumption That Could Affect Current Forecast Comments Cloud Cloud is a new paradigm of computing that will shape IT spending over the next several decades the logical evolution of what we called "dynamic IT" for years. It entails shared access to virtualized resources over the Internet. IDC estimates that cloud services (public cloud) increased 34% in 2010 to nearly $22 billion, or about 1.6% of IT spending, and that percentage should increase to 3% by Cloud represents the fastest-growing delivery model for software and represents an accelerator for software growth. At the same time, it impacts services as a decelerator, since it reduces the cost of delivering services. The main inhibitors for adoption of cloud are concerns about security and also regulations on where data is stored to ensure privacy. The pace at which these issues are addressed in specific geographies impact the overall worldwide forecast and pace of public cloud adoption. Cloud is a key element of what IDC terms the 3rd platform. The growth in PaaS adoption will govern the availability of applications in the public cloud for buyers to subscribe to. Software Software spending has rebounded strongly over the past two years and was largely ahead of expectations in There is some evidence that software spending is becoming a substitute for some labor costs. While hardware growth has softened in the past six months, momentum has shifted to software investments. Jobs lead to consumer spending that drive corporate profits and thus the demand for software expenditures. But we're now seeing another impact, which is that software spending comes ahead of spending on additional employees. However, job growth should follow, assuming the new skills required can be found. Thus far, new job creation has been tepid at best and unemployment rates have remained high in many industrialized countries. This could have a delayed impact on software spending growth if unemployment rates persist at the current high levels. Consumer spending and confidence are key to long-term sustained growth in software markets. Continued high unemployment is a definite market inhibitor. Source: IDC, May # IDC

139 TABLE 16 Key Forecast Assumptions for the Worldwide Software Market, Market Force IDC Assumption Impact Accelerator/ Inhibitor/ Neutral Certainty of Assumption Top 3 assumptions Economy IDC assumes that the global economy will be broadly stable but tepid in 2012, with the crisis in Western Europe casting a shadow. Worldwide GDP growth will be around 2.5%, weighed down by Europe. Short-term prospects for the U.S. economy have improved a little since CY 4Q11, and Japan will continue its recovery from the earthquake and tsunami. In Western Europe, the economy will flatline at 0% because of weak business and consumer confidence and the impact of austerity measures. Some countries in Europe have already entered a recession, and more countries could follow. Emerging markets have so far remained relatively resilient, but a downside scenario (unraveling of the European single currency) could derail momentum in all regions. High. A down economy affects business and consumer confidence, the availability of credit and private investment, and internal funding. A recession would cause businesses to delay IT upgrades and some new projects; a rising economy does the opposite IDC #

140 TABLE 16 Key Forecast Assumptions for the Worldwide Software Market, Market Force IDC Assumption Impact Accelerator/ Inhibitor/ Neutral Certainty of Assumption Cloud Cloud is a new paradigm of computing that will shape IT spending over the next several decades the logical evolution of what we called "dynamic IT" for years. It entails shared access to virtualized resources over the Internet. IDC estimates that cloud services (public cloud) increased 34% in 2010 to nearly $22 billion, or about 1.6% of IT spending, and that percentage should increase to 3% by Moderate. The key advantage to cloud services should be the ability of IT organizations to shift IT resources from maintenance to new initiatives. This in turn could lead to new business revenue and competitiveness as well as create new opportunities for IT vendors in SMB and emerging markets. There may be some negative impact on other areas of IT spending (e.g., traditional service revenue, as lower costs of delivery leads to lower contract values). Software Software spending has rebounded strongly over the past two years and was largely ahead of expectations in There is some evidence that software spending is becoming a substitute for some labor costs. While hardware growth has softened in the past six months, momentum has shifted to software investments. Moderate. Software spending, about 20% of total IT spending, can drive spending in hardware and IT and in business services. 134 # IDC

141 TABLE 16 Key Forecast Assumptions for the Worldwide Software Market, Market Force IDC Assumption Impact Accelerator/ Inhibitor/ Neutral Certainty of Assumption Macroeconomics Inflation Inflationary pressures may exert a negative impact on the global economy in Oil, commodity, and food prices are rising and many economies are currently experiencing inflation, which exceeds the targets set by central banks. Inflationary pressures are even more dangerous for developing economies than for advanced countries. In the context of overall economic growth, which is still moderate by historical standards (especially in Europe and Japan), anti-inflationary measures have the potential to be a significant headwind in the near term. High. Low inflation keeps interest rates low and leads to more capital spending, including spending on ICT. High inflation can dampen investment. Unemployment/job creation Unemployment worldwide is still hovering at around 10% (last seen in the 1982 recession), and most regions will see very slow declines in their jobless rates over the next several years. Mature economies are still vulnerable to weakening employment trends in the face of renewed business and consumer pessimism, inflationary pressures, or other headwinds. Unemployment will even rise in some countries in Europe, especially because of public sector job cuts related to austerity measures. Job creation in emerging markets will be stronger as long as the global economy remains stable. Moderate. More employment drives more need for ICT spending and is a lagging indicator of economic recovery; job creation should be accompanied by a willingness to invest in other areas. It's also becoming clear that IT spending is, in some cases, a substitution for labor costs, so the technology-employment relationship is multi-faceted IDC #

142 TABLE 16 Key Forecast Assumptions for the Worldwide Software Market, Market Force IDC Assumption Impact Accelerator/ Inhibitor/ Neutral Certainty of Assumption Wild cards We don't predict a future wild card (which by definition is an unpredictable event with the potential to disrupt our forecasts), but the stability of the European currency union represents a wild card that may have a significant impact on forecasts. The economy and IT market in Europe will be flat or even negative as a result, and the spillover effects of a European currency crisis could be severe for everyone. Another wild card is the standoff over Iran, including the potential impact of conflict on oil supply and prices. A wild card that has already impacted short-term growth is the flooding in Thailand, which caused an HDD shortage. Moderate. Wild card events such as a collapse of the eurozone or conflict in Iran have the potential to significantly impact global growth. Even emerging markets could be vulnerable to a major crisis. The HDD shortage, a good example of a wild card that couldn't have been foreseen, had a negative impact on PC volumes. Global megatrends Convergence Convergence is a complex phenomenon working at many levels: convergence of the telephone network and the Internet, communications and IT technologies, consumer and enterprise technologies, and even storage, routing, and processing in the datacenter. Of these, perhaps the most overarching is the convergence of voice, video, and data communications. IDC assumes that this convergence is a permanent phenomenon and that it will pick up pace as the decade wears on. One measure is that IDC expects 1.9 billion users on the Internet and 3 billion users of the phone network by The overlap will be significant. High. Convergence will drive new competitive dynamics, offer new applications and functions to customers, and strain the legal and regulatory systems. It will also drive increased ICT spending. 136 # IDC

143 TABLE 16 Key Forecast Assumptions for the Worldwide Software Market, Market Force IDC Assumption Impact Accelerator/ Inhibitor/ Neutral Certainty of Assumption Embedded computing, Internet of things This term refers to the proliferation of client devices and end-user or end-use devices at the network edge. Of 7 billion things connected to the Internet in 2010, 5 billion were not computers. These other devices range from Internetenabled cell phones and networked entertainment and gaming devices to automobiles, building automation systems, smart meters and thermostats, medical electronics, and industrial controllers. This doesn't even count RFID tags and sensors. IDC assumes that communicating client devices will proliferate at 5 10 times the rate of PCs installed. Devices will both converge (cell phones with more functionality) and diverge (single-use devices, such as RFID readers). High. The addition of billions of devices to the network edge will drive the need for more enterprise systems to deploy, manage, and make use of these devices. It will also shift the prevailing traffic from the center of the network outward to edge inward, which will affect computing and communications architectures. Market characteristics Buying sentiment Buying sentiment, as measured in IDC's FutureScan monthly poll of CIOs and line-ofbusiness managers, has improved in recent months. In the U.S. poll, buyer confidence has recovered from a lull in mid-2011, with most businesses and CIOs now predicting solid increases in their own IT budgets. In our China poll, businesses are on average still predicting doubledigit IT spending increases. Moderate. Buyer sentiment has long-term consequences for the approval of IT projects. Legend: very low, low, moderate, high, very high Source: IDC, May IDC #

144 Forecast for the Worldwide Software Market Table 17 presents IDC's projections for growth in the worldwide software market for by primary market and geographic region. All of the software segments reached the highest growth rate since the global recession in This occurred almost across all market areas (see Figure 2) and regions (see Figure 3). TABLE 17 Worldwide Packaged Software by Primary Market and Region, Application development and deployment CAGR Americas 38, , , , , , EMEA 26, , , , , , APJ 12, , , , , , Subtotal 77, , , , , , Applications Americas 81, , , , , , EMEA 51, , , , , , APJ 23, , , , , , Subtotal 156, , , , , , System infrastructure software Americas 45, , , , , , EMEA 28, , , , , , APJ 17, , , , , , Subtotal 90, , , , , , Total Americas 165, , , , , , EMEA 106, , , , , , APJ 53, , , , , , Total 324, , , , , , Note: See Table 15 for top 3 assumptions and Table 16 for key forecast assumptions. Source: IDC, # IDC

145 FIGURE 2 Worldwide Packaged Software by Primary Market, Source: IDC, 2012 FIGURE 3 Worldwide Packaged Software by Region, Source: IDC, IDC #

146 Tables illustrate worldwide revenue distribution by operating environment over the forecast period in each of the three primary markets. For packaged software as a whole, 32-bit and 64-bit Windows will continue as the leading operating environment, with a CAGR of 9.2% from 2011 to 2016, and reach $285.8 billion in revenue and a 63.4% market share by the end of the forecast period. Linux and other open source will experience the largest growth, with a CAGR of 22.0%. By 2016, open source operating environments will attain a 13.6% market share (up from 7.0% in 2011) and will take over the second place. Much of Linux's growth will come at the expense of Unix, which will decline at a CAGR of -3.2%, and will move to third place, with a 13.4% market share in TABLE 18 Worldwide Application Development and Deployment Software by Operating Environment, CAGR Mainframe 10, , , , , , Unix 19, , , , , , Linux/other open source 9, , , , , , Windows 32 and 64 34, , , , , , Other 3, , , , , , Total 77, , , , , , Growth NA Note: See Table 15 for top 3 assumptions and Table 16 for key forecast assumptions. Source: IDC, 2012 TABLE 19 Worldwide Application Software by Operating Environment, CAGR Mainframe 5, , , , , , Unix 35, , , , , , Linux/other open source 8, , , , , , Windows 32 and 64 93, , , , , , Other 13, , , , , , Total 156, , , , , , Growth NA Note: See Table 15 for top 3 assumptions and Table 16 for key forecast assumptions. Source: IDC, # IDC

147 TABLE 20 Worldwide System Infrastructure Software by Operating Environment, CAGR Mainframe 8, , , , , , Unix 15, , , , , , Linux/other open source 5, , , , , , Windows 32 and 64 55, , , , , , Other 5, , , , , , Total 90, , , , , , Growth NA Note: See Table 15 for top 3 assumptions and Table 16 for key forecast assumptions. Source: IDC, 2012 Market Context A five-year forecast ( ) was last published for the worldwide packaged software market in Worldwide Software Forecast Summary (IDC #228658, June 2011). Table 21 compares the forecast published in that document with the current forecast in terms of regional and worldwide revenue and worldwide annual growth rates. Figure 4 displays the same data in graphical form. A year ago, IDC was projecting a slight deceleration in packaged software growth in However, 2011 turned out to be more positive than that projection, resulting in a 9.8% increase in worldwide revenue is projected to show slower growth than 2011 but still mark the beginning of a prolonged period of steady mid-single-digit growth throughout the forecast period IDC #

148 TABLE 21 Worldwide Packaged Software by Region, : Comparison of June 2011 and June 2012 Forecasts June 2012 forecast Americas 137, , , , , , , , , ,023.9 EMEA 90, , , , , , , , , ,919.6 APJ 36, , , , , , , , , ,535.1 Total 264, , , , , , , , , ,478.6 Growth NA June 2011 forecast Americas 137, , , , , , , , ,722.6 EMEA 90, , , , , , , , ,328.1 APJ 36, , , , , , , , ,340.4 Total 264, , , , , , , , ,391.1 Growth NA Notes: See Worldwide Software Forecast Summary (IDC #228658, June 2011) for prior forecast. Historical market values presented here are as published in prior IDC documents based on the market taxonomies and current U.S. dollar exchange rates existing at the time the data was originally published. For more details, see the Historical Market Values and Exchange Rates section of Appendix A. Source: IDC, # IDC

149 FIGURE 4 Worldwide Packaged Software by Region, : Comparison of June 2011 and June 2012 Forecasts Source: IDC, 2012 ESSENTIAL GUIDANCE We are in a period of significant change in the software industry. The following points are key to positioning for future growth: 2011 showed a continuous growing trend in software from the impact of the Great Recession experienced in But expect a slowing of this trend in The shift to the 3rd platform (incorporating cloud delivery, Big Data/analytics, mobility as the deployment target, and social business) will have a fundamental impact for the next decade, requiring suppliers to meet changing user expectations. The worldwide aggregate forecast does not tell the full story of different economic situations in different regions, driving differential growth rates and requiring different local strategies to meet differing local and regional requirements IDC #

150 LEARN MORE Related Research Forecast and Competitive Analysis Documents Worldwide Development Languages, Environments, and Tools 2011 Vendor s (IDC #235129, June 2012) Worldwide Distributed Performance and Availability Management Software 2011 Vendor s (IDC #235139, June 2012) Worldwide Enterprise Portals 2011 Vendor s (IDC #235128, May 2012) Worldwide Financial Performance, Strategy Management, and GRC Applications 2011 Vendor s (IDC #234848, May 2012) Worldwide Nonrelational Database Management Systems 2011 Vendor s (IDC #234889, May 2012) Worldwide Data Integration and Access Software 2011 Vendor s (IDC #234890, May 2012) Worldwide Relational Database Management Systems 2011 Vendor s (IDC #234894, May 2012) Worldwide Database Development and Management Tools 2011 Vendor s (IDC #234895, May 2012) Worldwide System Management Software 2011 Vendor s (IDC #235052, May 2012) Worldwide Distributed System Management Software 2011 Vendor s (IDC #235053, May 2012) Worldwide Change and Configuration Management Software 2011 Vendor s (IDC #235073, May 2012) Worldwide Performance and Availability Management Software 2011 Vendor s (IDC #235127, May 2012) Worldwide Human Capital Management Applications 2011 Vendor s (IDC #234984, May 2012) Worldwide Hadoop-MapReduce Ecosystem Software Forecast (IDC #234294, May 2012) Worldwide Human Capital Management Applications Forecast: Market Continues Strong (IDC #235156, May 2012) Worldwide Big Data Technology and Services Forecast (IDC #233485, March 2012) 144 # IDC

151 Worldwide Problem Management Software Forecast (IDC #233662, March 2012) Worldwide Change and Configuration Management Software Forecast (IDC #233498, March 2012) Worldwide Performance and Availability Management Software Forecast (IDC #233537, March 2012) Worldwide Workload Scheduling and Automation Software Forecast (IDC #233539, March 2012) Worldwide Output Management Software Forecast (IDC #233731, March 2012) Worldwide Cloud Systems Management Software Forecast (IDC #234001, March 2012) Worldwide Public Platform as a Service Forecast (IDC #232215, February 2012) Worldwide Distributed System Management Software Forecast (IDC #233424, February 2012) Worldwide System Management Software Forecast (IDC #233428, February 2012) Worldwide Archival Storage Solutions 2012 Vendor Profiles: A Software View (IDC #232361, January 2012) Worldwide Public Cloud Application Platforms Forecast (IDC #232171, January 2012) Worldwide IT Security Products Forecast and 2010 Vendor s: Comprehensive Security Product Review (IDC #232221, December 2011) Worldwide IT Project and Portfolio Management SaaS Forecast and 2010 Vendor s: SaaS Drives IT PPM Adoption (IDC #232271, December 2011) Worldwide Enterprise Applications 2010 Vendor s (IDC #232256, December 2011) IDC Predictions Documents Worldwide Application Development and Deployment 2012 Top 10 Predictions (IDC #233452, March 2012) Worldwide Software Business Solutions 2012 Top 10 Predictions (IDC #233104, February 2012) 2012 IDC #

152 Worldwide Storage 2012 Top 10 Predictions: Storage Spending Influenced by Cloud, Big Data, and Mobility Trends (IDC #232557, January 2012) Worldwide Unified Communications and Collaboration 2012 Top 10 Predictions (IDC #232897, January 2012) Other Related Research IDC's Software Taxonomy, 2011 (IDC #228020, July 2011) Worldwide Software Forecast Summary (IDC #228658, June 2011) Appendix A: Worldwide Software Market Sizing and Forecast Methodology The IDC software market sizing and forecasts are presented in terms of packaged software revenue. IDC uses the term packaged software to distinguish commercially available software from custom software, not to imply that the software must be shrink-wrapped or otherwise provided via physical media. Packaged software is programs or codesets of any type commercially available through sale, lease, rental, or as a service. Packaged software revenue typically includes fees for initial and continued right-to-use packaged software licenses. These fees may include, as part of the license contract, access to product support and/or other services that are inseparable from the right-to-use license fee structure, or this support may be priced separately. Upgrades may be included in the continuing right of use or may be priced separately. All of these are counted by IDC as packaged software revenue. Packaged software revenue excludes service revenue derived from training, consulting, and system integration that is separate (or unbundled) from the right-touse license but does include the implicit value of software included in a service that offers software functionality by a different pricing scheme. It is the total packaged software revenue that is further allocated to markets, geographic areas, and operating environments. The market forecast and analysis methodology incorporates information from five different but interrelated sources, as follows: Reported and observed trends and financial activity. This study incorporates reported and observed trends and financial activity in 2011 as of the end of April 2012, including reported revenue data for public companies trading on North American stock exchanges (full CY 2011 in nearly all cases). IDC's Software Census interviews. IDC interviews all significant market participants to determine product revenue, revenue demographics, pricing, and other relevant information. Product briefings, press releases, and other publicly available information. IDC's software analysts around the world meet with hundreds of software vendors each year. These briefings provide an opportunity to review current and future business and product strategies, revenue, shipments, customer bases, target markets, and other key product and competitive information. 146 # IDC

153 Vendor financial statements and related filings. Although many software vendors are privately held and choose to limit financial disclosures, information from publicly held companies provides a significant benchmark for assessing informal market estimates from private companies. IDC also builds detailed information related to private companies through in-depth analyst relationships and maintains an extensive library of financial and corporate information focused on the IT industry. We further maintain detailed revenue by product area models on more than 1,000 worldwide vendors. IDC demand-side research. This includes interviews with business users of software solutions annually and provides a powerful fifth perspective for assessing competitive performance and market dynamics. Direct conversations with technology buyers provide an invaluable complement to the broader surveybased results. Ultimately, the data presented in this study represents IDC's best estimates based on these data sources as well as reported and observed activity by vendors and further modeling of data that we believe to be true to fill in any information gaps. The data in this study is derived from all the above sources and entered into the Software Market Forecaster database, which is then updated on a periodic basis as new information regarding software vendor revenue becomes available. For this reason, the reader should note carefully the "as of" date in the Methodology discussion within the In This Study section, near the beginning of this study, whenever making comparisons between the data in this study and the data in any other software revenue study. Historical Market Values and Exchange Rates Historical market values presented here are as published in prior IDC documents based on the market taxonomies and current U.S. dollar exchange rates existing at the time the data was originally published. For markets other than the United States, these as-published values are therefore based on a different exchange rate each year. Because many individual countries contribute to regional totals, it is difficult to give precise differences between current and constant currency values in this document. However, the scale of the difference can be understood from the movement of the U.S. dollar against major regional currencies. Customers should consider multiplying regional historical market values for each year by the change in value of the U.S. dollar against representative currencies in the region as shown in Table 22. This will provide a better approximation of local market growth. For example, to restate 2010 eurozone values into 2011 dollars, one would adjust the 2010 value upward by 5% (because the dollar depreciated against the euro in 2011). Please refer to IDC's regional research studies containing historical forecasts for multiple countries for more accurate regional growth in local currencies. Note that this discussion applies only to historical values prior to and all future years are forecast at a constant exchange rate IDC #

154 TABLE 22 Exchange Rates, Euro Pound Yen Canadian dollar Mexico peso Brazilian real Note: To restate prior-year U.S. dollars, multiply historical market values by the percentage indicated in the table. Source: IDC, January 2012 Appendix B: Worldwide Software Market Forecast Summary Glossary IDC's software research programs maintain a centralized database that includes worldwide total packaged software revenue for over 1,000 software vendors. We do not contend that this is an exhaustive list of software providers; in fact, we believe there are more than 10,000 such suppliers. However, our database is designed to support very precise forecasting, and the suppliers in the database represent a majority of the software market's revenue overall and a majority of the revenue in each of the various segmentations it supports. The revenue is allocated to functional market segments, geographic areas, revenue types, industries, channels, and operating environments. The functional software markets defined by the taxonomy represent a collectively exhaustive and mutually exclusive view of the worldwide software marketplace. IDC's software market taxonomy is the basis for the relational multidimensional schema of the IDC Software Research database. The information from this continually updated database is used by IDC's software Continuous Intelligence Services (CISs) (i.e., our subscription research services) to generate consistent packaged software market sizing and forecasts. In addition, the IDC Software Research database is used as input to worldwide and regional syndicated trackers, the Worldwide Software Market Forecaster pivot table subscription products, and as the foundation for consulting engagements and further segmentations. Total packaged software revenue is defined as license revenue plus maintenance revenue plus subscription and other software revenue. It is primarily the total packaged software revenue that is further allocated to markets, geographic areas, and operating environments. In addition to total packaged software revenue, IDC collects software license revenue, software maintenance revenue, subscription and other software related revenue, and total company revenue: License revenue includes revenue collected for software licenses, either limited term (lease) or perpetual, that include licenses for new installations of a software product, licenses for additional software options, changes to existing licenses 148 # IDC

155 permitting more users or more computer system resources to be used by the licensed software (based, of course, on the original license agreement); such changes are often necessitated by server upgrades or staff increases or conversions of licenses that result in incremental additional revenue such as conversions from a fixed number of users or processors to a site or enterprise license. License revenue does not include license maintenance revenue, which typically includes fees covering version upgrades, the automatic delivery of bug fixes and patches, and basic telephone support, all of which are normally delivered during a fixed, renewable term of service. Maintenance revenue consists of fees charged for continuous improvement of the software by repairing known faults and errors and/or enhancing and updating the product, as well as for technical support. Subscription/other software revenue consists of fees to use software products and to receive maintenance and support for those software products for a limited period of time. Subscriptions consist of bundled software and services where the fair value of the license fee is not separately determinable from maintenance/support. This category also includes software lease or rental revenue (often, but not exclusively, applied to mainframe software). What Is Packaged Software? How does IDC identify the companies it measures and the resulting value of the markets? Our objective is to define companies and markets that are relevant for market research purposes not for legal or accounting purposes nor simply for publishing historic lists. Clearly, many companies have software and other types of business units; this taxonomy is not about deciding on the relative strengths of these business units and applying a single label to the entire company. The question therefore is, When does a company market and deploy software that should be counted as such for market research purposes? IDC uses the term packaged software to distinguish commercially available software from custom software, not to imply that the software must be shrink-wrapped or otherwise provided via physical media. Packaged software is programs or codesets of any type commercially available through sale, lease, or rental, or as a service. Packaged software revenue typically includes fees for initial and continued right-touse packaged software licenses. These fees may include, as part of the license contract, access to product support and/or other services that are inseparable from the right-to-use license fee structure, or this support may be priced separately. Upgrades may be included in the continuing right of use or may be priced separately. All of the above are counted by IDC as packaged software revenue. Packaged software revenue excludes service revenue derived from training, consulting, and systems integration that is separate (or unbundled) from the right-touse license but does include the implicit value of software included in a service that offers software functionality by a different pricing scheme (as described directly below in more detail) IDC #

156 Increasingly, packaged software is also being marketed and deployed on a subscription and transaction basis, as well as via other arrangements (e.g., for "free" with the packaged software's "owner" taking a percentage of the revenue enabled by the software as implicit "product" revenue), some of which do not involve a license. Software has also long been available for lease or rent, typically on mainframes. Furthermore, we must not be limited by accounting directives (such as those released by AICPA and FASB) because this would neglect to count large segments of software markets in a way that accurately reflects market dynamics and future opportunity. IDC's Software Research database includes revenue from a company if the company competes in a packaged software market defined in the taxonomy. From the market research standpoint, this is the most important question. Software revenue is defined in terms of two types of offerings from the viewpoint of the customer: The market for software code of a given functionality sold as such, typically via a perpetual license The market for software code bundled and marketed in another way (e.g., an application service) that competes with perpetually licensed software products To be classified as packaged software revenue attributed to a company in the Software Market Forecaster research database, both of the following have to be true: Ownership of intellectual property. X-as-a-service (XaaS) providers that do not own the software code are not software vendors but channels for software vendors. However, some vendors own the code and also provide an XaaS offering. In this case, IDC estimates a value for the software provided in that manner. However, in the case of packaged open source software (where there is no "owner" of the intellectual property), revenue is attributed to the distributor. Product is replicated. Software companies assemble a package of code from components and "sell" multiple copies in a one-to-many business model. The software product is replicated to support that model. Even though it may be customized as it is being installed, when the customization capability is an attribute built into the code, it is still considered replicated. Value-added resellers (VARs) do customization to packaged software, often on a one-to-one basis. In this case, VARs are a channel for the software. When a company takes code and adds its own changes and sells the resulting package substantially as changed to many customers, it is in turn an ISV that resells or OEMs components and adds value. (In these cases, IDC estimates the pass-through revenue and deducts it from the reseller and attributes it to the original owner of the intellectual property so as not to double count revenue and artificially inflate the size of the software market.) 150 # IDC

157 General Functional Market Definitions The worldwide software market includes all packaged software revenue across all functional markets or market aggregations. Primary software markets are the aggregation of the functional markets for applications, AD&D, and system infrastructure. The three primary markets together make up the worldwide software market. Secondary software markets are 19 important aggregations that make up IDC's packaged software market taxonomy. These secondary markets are consumer applications; collaborative applications; content applications; enterprise resource management (ERM) applications; supply chain management (SCM) applications; operations and manufacturing applications; engineering applications; customer relationship management (CRM) applications; structured data management software; application development software; quality and life-cycle tools; application server middleware; integration and process automation middleware; other application development and deployment; data access, analysis, and delivery software; system and network management software; security software; storage software; and system software. These markets map into the three primary markets and collectively equate to the worldwide software market. Functional markets are the focal point of IDC's analysis. IDC defines 78 individual functional markets for which it analyzes revenue by vendor, geography, and in some instances additional segmentations. Functional markets also provide the foundation and revenue base for the generation of competitive markets. Submarkets describe one or more discrete functional areas within a specific market. Although submarket-level data may be reported in selected IDC studies, this level of detail is not recorded in the Software Research database. Applications Market Definitions Packaged application software includes consumer, commercial, industrial, and technical programs and codesets designed to automate specific sets of business processes in an industry or business function, to make groups or individuals in organizations more productive, or to support entertainment, education, or data processing in personal activity. The packaged application market includes the consumer, collaboration, content, and enterprise applications subsegments; the enterprise applications market, in turn, is made up of the enterprise resource management, supply chain management, operations and manufacturing, engineering, and CRM applications markets. Consumer Applications Consumer applications are software products for recreation, education, and/or personal productivity enhancement IDC #

158 Consumer Software The consumer software market includes home education/edutainment products sold to homes for specific educational purposes (for either adults or children) or reference (e.g., dictionaries and encyclopedias); games and entertainment (sports, adventure/role playing, arcade/action, strategy, and family entertainment applications); and home productivity that covers the software categories of home creativity, including all help, how-to, and lifestyle applications (e.g., cookbooks); personal productivity products, including resume writers, standalone calendars, expense records, will makers, and family-tree makers; and personal finance and tax preparation programs. Note: IDC does not provide detailed functional analysis of the consumer applications market but tracks related revenue to provide a holistic view of the industry because some software providers market consumer, collaboration, content, and enterprise applications as well as other types of software. Collaborative Applications Collaborative applications enable groups of people to work together by sharing information and processes. Definitions of collaborative applications markets are presented in the sections that follow. Applications applications provide a framework for electronic messaging, typically within an organization, based on shared directory messaging platforms and access protocols for use by enterprises. The core integrated functionality areas are mail messaging, group calendaring and scheduling, shared folders/databases, threaded discussions, and custom application development. Administration and customization are generally performed by centralized IT staff when deployed on-premise or by a third-party application management provider when deployed as a hosted service. Instant Communications Applications Instant communications applications represent the evolution of standalone enterprise instant messaging (IM) and presence capabilities into a more sophisticated environment for messaging and collaboration. Instant communications applications connect known users and combine many of the following capabilities: text-based instant messaging/web-based chat (one-to-one and multiparty chat), internal screen sharing/presentation, presence/location awareness, real-time desktop contact management, desktop video, internal voice over IP (VoIP) calling and call control, and integration with LDAP and related directory services. Team Collaborative Applications Team collaborative applications (TCAs) provide an integrated set of Web-based tools for structured, content-specific collaboration among team members from one or more organizations with known domains. The core integrated functionality areas are shared workspaces for managing and sharing information in documents, assigning and coordinating tasks, and maintaining other project and team content. User and workspace administration, configuration, and customization are generally performed by individual users. Communication within the TCA environment is mostly asynchronous, B2B, and closed to a specific set of eyes. 152 # IDC

159 Collaborative applications designed for a particular vertical market such as manufacturing product design or life-cycle development (product data management [PDM] and product life-cycle management [PLM]) or application development code sharing are not included here. Conferencing Applications Conferencing applications (also known as Web, data, visual, electronic, or real-time conferencing) provide a real-time connection for the viewing, exchange, or creation of content and information by two or more users in a scheduled or ad hoc online meeting or event. Conferencing applications can be delivered to a desktop or smartphone device (using IP, TDM, Web interface, proprietary thin client, or browser) as well as video endpoint (either a specialized video room or desktop). Enterprise Social Software Enterprise social software offerings bring enhanced social collaboration capabilities to users that are either inside or outside an organization's firewall. Those users primarily in non customer facing roles are the focus of these solutions, but customer-facing interactions may also occur. Common enterprise 2.0 functionality offered in enterprise social software solutions include, but are not limited to, activity streams, blogs, communities, discussion forums, groups (public or private), ideas, microblogging, profiles, recommendation engines (content or people), tagging, bookmarking, and wikis. Vendors tracked in the enterprise social software market can offer discrete solutions supporting one type of social functionality (such as community management, ideation, innovation management, or activity streams) or a broad-based platform that encompasses many functionality traits. A variety of deployment options (on-premise, SaaS, hosted application management, or software appliance) are made available. Content Applications Content applications include content management software, authoring and publishing software, search and discovery software, and enterprise portals. The specific market definitions are presented in the sections that follow. Content Management Content management software builds, organizes, manages, and stores collections of digital works in any medium or format. The software in this market includes document management, Web content management, capture and image management, digital asset management, and records management. Content management forms the foundation or the infrastructure for knowledge management. Applications in this market include one or more of the following functions: Gathering and feeding documents and other media into collections via crawlers or other automated and/or manual means and performing metadata capture/enrichment, formatting, transformations, and/or conversion operations Organizing and maintaining information, including some or all of the following: 2012 IDC #

160 Indexing, cataloging, and/or categorizing information in the content management system Building directories Defining workflows for tracking documents and changes and sending alerts when action is required Record keeping, auditing, and logging Updating and purging content Searching for information in the content management system (embedded tools may be provided) Ensuring document security by managing rights and permissions to create, edit, post, or delete materials; managing user access; and protecting intellectual property Authoring and Publishing Software Authoring and publishing software is defined as software used to create, author, edit, and publish content, including text documents, spreadsheets, presentations, images, audio, video, and XML-structured documents. It does not include the software used to design and develop Web sites. Authoring and publishing software includes the following categories: Office suites, including word processors, spreadsheets, and presentation software Graphic design and layout, including image editing software and layout and design software Compound document authoring and publishing, including XML authoring software as well as software for the automated and semiautomated generation of paginated, structured electronic documents from content components. Forms design and input software, including software to design forms, render the forms for display, and enter data into the forms but not to route, manage, or process the forms beyond form-level validation or actions Audio/video (AV) authoring software, which lets professionals and advanced consumers edit, manipulate, and assemble audio and video content, including the creation of custom professional CDs and DVDs Information diagramming applications, which provide for the diagramming and visual representation of information Other authoring tools, including tools for creating elearning content, online help, and other types of content 154 # IDC

161 Search and Discovery Search and discovery applications create access to unstructured information. They also provide alternative access to structured data. This group of software applications and technologies analyzes, tags, and searches text, often in multiple languages, and rich media such as audio files, video, and image files. This market also includes unified information access platforms, extended search platforms, search engines, multilingual modules, question-answering applications, categorization/metadata tagging tools, categorizers and clustering engines, visualization tools for information navigation and analysis, filtering and alerting tools and text analytics applications. Search engines, platforms, and applications including browsing and navigation Text mining and text analytics Categorizers and clustering engines Question answering Language analyzers Rich media search Enterprise Portals Enterprise portals integrate access to information and multiple applications and present it to the business user in a useful format. This software often provides a metadata-driven presentation framework for developing applications that tie together capabilities often provided by other product categories, such as team collaboration, content and document management, enterprise search, business intelligence, and workflow and business process management. This software is used by business users who can tailor the look and feel of their environment but must also include IT tools for role-based or rule-based administration governing access. Enterprise Resource Management Applications Enterprise resource management applications are designed to automate and optimize business processes related to resources required to meet business or organizational objectives but are not customer or prospect facing or specialized to various types of engineering. The resources automated include people, finances, capital, materials, and facilities. The resulting applications forecast, track, route, analyze, and report on these resources. The market includes software that is specific to certain industries as well as software that can handle requirements for multiple industries. Definitions of the relevant functional application segments are presented in the sections that follow IDC #

162 Financial Accounting Applications Financial applications are designed to support accounting, financial, and treasury and risk management functions. The financial applications market consists of the following submarkets: Accounting software supports general financial management business processes such as accounts payable, accounts receivable, general ledger, and fixed asset accounting, as well as more specialized functions such as credit and collections management and automation, dispute resolution, enterprise spend management, project accounting and costing, tax and revenue management and reporting, nonprofit fund accounting, point of sale, invoicing, electronic bill presentment and payment, and transactional financial reporting and business intelligence embedded into accounting applications. Treasury and risk management applications support corporate treasury operations (including the treasuries of financial services enterprises) with the corresponding financial institution functionality and optimize related cash management, deal management, and risk management functions as follows: Cash management automation includes several treasury processes involving electronic payment authorization, bank relationship management, cash forecasting, and others. Deal management automation includes processes for the implementation of trading controls, the creation of new instruments, market data interface from manual or third-party sources, and others. Risk management automation includes performance analysis, Financial Accounting Standard (FAS) 133 compliance, calculation of various metrics used in fixed-income portfolio analysis, market-to-market valuations, and others. Human Capital Management Human capital management (HCM) applications software automates business processes that cover the entire span of an employee's relationship with the corporation (as opposed to the department or group to which the employee belongs) as well as management of other human resources used by the enterprise (e.g., contingent labor, contractors, and consultants), including increasingly human resources employed by suppliers and customers. The center of the HCM applications suite is designed for core HR functions such as personnel records, benefits administration, and compensation. Increasingly, these functions are being delivered as employee self-service or manager self-service to automate record keeping and updating as well as consolidated reporting. Globalization, flexible work rules, job mobility, and the strategic importance of people assets have forced organizations to transform their human resources systems into a more real-time, personalized, and operational intelligence business function that goes beyond the traditional view of aggregating personnel data. Core HR functions are being supplemented by extensions that form the basis of a new generation of HCM 156 # IDC

163 applications framework. The extensions are categorized in four major segments or submarkets: erecruiting, incentive management, performance management, and workforce management. Increasingly, core HR applications are also adding selective and functional-equivalent features of these HCM extensions to meet changing customer requirements. The functional aspects of these HCM extensions are: Recruiting applications are designed to automate the recruitment process through better tracking of applicants, screening and skills assessment, profiling and resume processing, and identifying talents inside or outside the organization. Key features include: Managing skills inventories Creating and managing job requisitions Identifying appropriate employment candidates Coordinating team collaboration within hiring processes Facilitating resource planning Deploying workers to appropriate jobs, projects, or teams Incentive management applications are designed to automate the process of providing cash and noncash incentives to employees, partners, and external users through advanced modeling, reporting, and built-in interfacing to payroll accounting systems. Key features include: Quota and territory management Calculation and distribution of commissions, spiffs, royalties, and incentives to employees and channel and business partners Compensation analysis using internal and external data for retention risk analysis Linking incentives cash and noncash to business objectives Payroll and payment engine interfaces Account payables integration HR performance management applications are designed to automate the aggregation and delivery of information pertinent to the linking of job roles and the mission and goals of the organization. More specifically, the system allows users to automate the performance review process by using mechanisms such as training and key performance indicators (KPIs) to constantly track and monitor the progress of an individual employee, work team, and division. Key features include: Assessment of individual and organizational skills gaps that impede performance and job advancement, as in ability testing Continuous reviews and establishing milestones 360-degree evaluation and real-time feedback 2012 IDC #

164 Performance appraisal automation Competency assessment and management Goal setting and tracking Employee surveys Alignment of human assets to corporate objectives Learning development and career improvement programs Fast tracks for top performers Delivering training based on certification requirements Succession planning Workforce management applications are designed to automate the deployment of the workforce through workload planning, scheduling, time and attendance tracking, resource management, and rules and compliance management. Increasingly, workforce management applications are being integrated into customer relationship management applications in a contact center environment. Through extensive use of workforce management applications, organizations are also able to develop training guidelines, career advancement plans, and incentive compensation programs to improve, motivate, and sustain the quality of their employees. Key features include: Skills and certification tracking Shift/vacation bidding Workload planning, forecasting, and scheduling Scheduling optimization Customer wait-time forecasts Coverage management Absence management Labor activity tracking Rationalization of revenue per full-time equivalent Cost of sales activities Sales resource planning based on local and regional opportunities Payroll Accounting The functionality involves payroll accounting and other labor-related payments, including tracking of stock-option compensation and other variable and nonvariable payments. 158 # IDC

165 Procurement Procurement applications automate business processes relating to purchasing material (whether direct or indirect; raw, in process, or finished; as a result of or flowing into a product supply chain specific business process; or in support of performing a service) and services (business or professional). With the advent of the Internet, the procurement function is being expanded to cover Web-based sourcing, procurement, transaction processing, and payment support, all of which are connected to create a single view of the spending levels at a company. As a result, purchasing activities are integrated into a supplier community that can be easily tracked, benchmarked, and analyzed by both buyers and suppliers. Existing and upcoming features of these procurement modules include: eprocurement Self-service requisitioning Order entry (PO ) Approvals, workflow Transaction processing, EDI, EDI-INT Procuring configurations Global agreements, time-phased pricing, mass update price esourcing Strategic sourcing Dynamic pricing erfx Product design management Commodity strategy, spot buying Contract compliance Contract library Contract management, tracking, enforcement Content management Standardization, function equivalent Consolidated buy/group purchasing organizations Data synchronization and management 2012 IDC #

166 Item master cleansing Category management for commodity buying Catalog aggregation, syndication Supplier performance management Supplier enablement, portal Vendor-managed inventory support Supplier performance tracking Supplier consolidation Supplier satisfaction metrics Machine-to-machine connection such as EDI exchanges Electronic invoice presentment and payment/dispute resolution Volume discount discovery Consolidation of accounts Invoice, PO, multiple document matching Standard applications templates for exceptions handling Procurement analytics Integrated analytics Order Management Order management applications are designed to automate sales order processing from capture to invoice and settlement as well as built-in features to handle order planning and demand management capabilities. Item lookup and order placement are the prerequisites of order management applications, followed by issuance of receipts and advance shipping notices as well as payment processing functions. Increasingly, Web-based order management applications are replacing legacy systems for faster and more accurate order processing. Order and product configurations, as well as pricing options, freight calculation, and credit checking, are being combined to form an integrated order management application, regardless of the sales channels. Other features include view price history, profit management, multiple order types (including quotes and credit orders), blanket and release orders, direct ship and transfer orders, kit processing, and product returns processing. 160 # IDC

167 Financial Performance and Strategy Management Applications The financial performance and strategy management applications market consists of cross-industry applications whose main purpose is to measure, analyze, and optimize financial performance management processes using prepackaged applications that include the following: Budgeting and planning includes applications to support operational budgeting processes, corporate budget consolidation and adjustment processes, and planning and forecasting processes. Financial consolidation includes applications that support both statutory and management financial consolidation, reporting, and adjustment processes across multiple entities and divisions. Profitability management and activity-based costing applications include packaged applications to support detailed cost and profitability measurement and reporting processes. Strategy management applications include those that support a closed-loop performance management strategy such as the balanced scorecard. Strategy management applications incorporate domain expertise across a range of business processes, such as finance, human resources, operations, and CRM, but enable strategic management processes rather than performance management reporting processes of these functions. Project and Portfolio Management Project and portfolio management (PPM) applications are used for automating and optimizing the initiating, planning/scheduling, allocation, monitoring, and measuring of activities and resources required to complete projects. In addition, the portfolio management capabilities enable the tracking of an aggregation of project, products, programs, and/or initiatives to oversee resource allocation, for making ongoing investment and prioritization decisions, and to track risks as part of an overall portfolio. Ultimately, PPM applications help organizations manage the scope, time, and cost of discrete sets of related people processes (projects) on an individual and portfolio basis. IDC uses a wide definition of PPM to include the breadth of solutions that use PPM features at their core, such as architectural/engineering/construction management (AEC) or building infrastructure information management (BIIM), asset/capital management (A/C), IT project portfolio management (ITPPM), new product development/introduction management (NPDI), professional service automation (PSA) or services resource planning (SRP), and other industry-oriented solutions developed around the primary premise of successful "project" completion as the main business purpose. Enterprise Asset Management Enterprise asset management application software automates the many aspects of asset management and maintenance, repair, and overhaul (MRO) operations (e.g., machinery and equipment, buildings, or grounds). The software generally includes functionality for planning, organizing, and implementing maintenance activities, 2012 IDC #

168 whether they are performed by employees of the enterprise or by a contractor. Typical features include equipment-history record management, descriptions of items maintained, scheduling, preventive and predictive maintenance on the assets, work order management, labor tracking (if integrated within the maintenance management applications), spare parts management, and maintenance reporting. Supply Chain Management Applications Supply chain management application software automates supply- and demand-side business processes that bring a product or service to market, including multisite organizations involved in a complex supply chain process, including raw materials suppliers, contract manufacturers, 3PL and 4PL providers, and individual transportation and warehousing organizations. Definitions of the relevant functional application markets are presented in the sections that follow. Logistics Logistics application software automates activities relating to moving inventory or materials of any type. Examples include software that automates distribution resource planning, warehouse management, and transportation planning business processes that are not specific to an industry. (Logistics applications specific to the transportation industry are included in the services operations management applications market.) Production Planning Production planning (PP) applications software automates activities related to the collaborative forecast and continuous optimization of manufacturing processes. PP applications span supply planning, demand planning, and production planning within organizations. These applications identify demand signals, aggregate historical data that informs short- and long-term demand expectations, and provide supplier capabilities across multiple manufacturing sites. Production planning application software is key to any supply chain management initiative because supply and demand planning dictates the rest of the supply chain activities. Inventory Management Inventory management application software automates activities relating to managing physical inventory, whether direct or indirect; raw, in process, or finished; as a result of or flowing into a product supply chain specific business process; or in support of performing a service. This includes inventory control/materials management business processes in any industry, not just in manufacturing. Operations and Manufacturing Applications Operations and manufacturing applications are enterprise applications that automate and optimize processes related to planning and execution of services operations and manufacturing activities, as well as other back-office activities. The resources automated include people, capital, materials, and facilities. The applications track, route, analyze, and report on these resources. The market includes software that is specific to services, manufacturing, and other industries. Definitions of the relevant functional application segments are presented in the sections that follow. 162 # IDC

169 Services Operations Management Services operations management applications support the services supply chain and are unique to particular industries. These industry-specific applications cover a broad range of activities such as automating claim processes (as applied to insurance functions), automating admissions/discharges and transfers of patients (as applied to healthcare functions), or automating energy trading (as applied to energy and utility functions). Other examples of industry-specific applications are those that enable the automation of real estate, business, legal services, banking and finance, education, government, social services, and transportation. Manufacturing Functional applications in manufacturing include material and capacity requirements planning (MRP), bills of materials (BOMs), recipe management, manufacturing process planning and simulation, work order generation and reporting, shop floor control, quality control and tolerance analysis, and other functions specific to manufacturing execution (MES). The category does not include computer-aided manufacturing (CAM) applications for NC and CMM machine programming. (Advanced planning and scheduling applications are included in the supply chain planning functional market.) Other Back Office Other back-office applications include various types of application automating functions not otherwise covered previously, such as computer-based training, elearning applications, speech and natural language, translation and globalization software, and environmental health and safety applications. These applications also cover a wide range of point solutions for product-related applications other than services operations management and manufacturing. These applications have at their core a product orientation focused on efficiencies related to item maintenance, replenishment, and site management. Among them are retail- and wholesale-specific applications. Engineering Applications Engineering applications automate all of the business processes and data management activities specific to ideas management, concept planning, and design and the handoff of a design to execution (manufacturing, construction, or other). The markets include mechanical computer-aided design (MCAD), CAM, computer-aided engineering (CAE), collaborative product data management, and other engineering applications, which include those for electronic design automation (EDA) and architecture/engineering/construction (AEC) or building infrastructure information management (BIIM). Definitions of the engineering application segments are presented in the sections that follow. Mechanical Computer- Aided Design MCAD software is utilized for tasks typically performed by designers and drafters. Specifically, this category includes computer-assisted designing, drafting, and modeling (wire frame, surface, and solid). MCAD also includes conceptual design and/or industrial design, animation and visualization, and assembly design IDC #

170 Mechanical Computer- Aided Engineering Mechanical CAE applications address tasks such as structural/stress analysis, kinematics, fluid dynamics, thermal analysis, and test data analysis. Mechanical Computer- Aided Manufacturing Mechanical CAM applications prepare data for actual production on the shop floor (e.g., NC tape generation and data for CNC machines). Collaborative Product Data Management Collaborative product data management (cpdm) applications provide engineering groups, but also increasingly cross-disciplinary teams across the enterprise as well as outside of its four walls, with software tools to electronically coordinate, manage, and share product data throughout the product life cycle. The major subsegments of this market are product data vaulting, document management, light geometry with view/markup capabilities (collaboration), change management, and parts libraries. Workflow, ideas management, and product-focused environmental compliance management are now emerging as additional application subsegments. Other Engineering Other engineering applications support electronic design automation, architectural/engineering/construction, and other engineering functions. AEC applications software automates drawing/design of building- and civil engineering related projects. (AEC project and portfolio planning and facilities management are part of the project and portfolio management functional market.) Customer Relationship Management Applications CRM applications automate the customer-facing business processes within an organization irrespective of industry specificity (i.e., sales, marketing, customer support, and contact center). Collectively, these applications serve to manage the entire life cycle of a customer including the process of brand building, conversion of a prospect to a customer, and the servicing of a customer and help an organization build and maintain successful relationships. Interactions in support of this process can occur through multiple channels of communication. Channels of communication include but are not limited to , phone, and Web. Additional technologies impacting CRM are as follows: Social CRM IDC includes functionality that incorporates social capabilities within a CRM construct within the relevant functional market. SaaS CRM applications that are offered through an on-demand or SaaS delivery model are categorized within the appropriate functional market. ecommerce IDC defines ecommerce application software as applications that are directly involved in or linked to the application in which an order is placed or accepted, therefore representing a commitment for a transfer of funds in exchange for goods or services. Included in this process is the presentation of the product to the customer in the form of an online catalog. As is the case with 164 # IDC

171 other competitive software markets, ecommerce applications derive from existing functional markets. Applications that manage the catalog and customer facing portions of the ecommerce process are categorized in the appropriate CRM market as indicated as indicated below. Definitions of the CRM application segments are presented in the sections that follow. Sales Sales automation applications include both sales management applications and sales force automation applications. Functionality includes the following: Account/contact management Electronic ordering Lead management Mobile sales Opportunity management Partner relationship management (PRM) Sales analysis and planning tools Sales configuration tools Sales history Team selling Telemarketing and telesales scripting Territory management Marketing Marketing applications software automates a wide range of individual and collaborative activities associated with the various components of the marketing process, including strategic marketing activities over more operational, campaign related activities to catalogue-based ecommerce and trade promotions management. Functionality includes the following: Ad management/placement Brand management Campaign planning, execution, and management Collateral management/distribution Direct/database marketing 2012 IDC #

172 Electronic catalog/ecommerce solutions marketing Social marketing Sentiment analysis Customer, segmentation, and predictive analytics Event/trade show management Focus groups/media testing Lead generation/qualification/distribution List management Marketing resource management Media and analyst relations Mobile device marketing Personalization Primary research Surveying Trade promotion management Upsell and cross-sell programs Web activity analysis Web advertising Customer Service Customer service applications provide customer/client (e.g., patient and student) information management (CIM). Each application is designed to enhance the management of relationships with existing customers. Customer service software is used to support customers who are external to an organization. Defining characteristics of the customer service category include problem tracking, customer history, and incoming contact management. Functionality includes: Automated assistants Case assignment and management Conferencing 166 # IDC

173 response management Field service Live collaboration and chat Self-service Web chat Social network response IT help desk applications are covered under "problem management" in the system management software category and are thus excluded from this market. Contact Center Contact center applications automate functions relating to the operations of the CRM installation. These applications, although enabling in function, do not have a desktop end-user focus. Products included in this category are ACD, predictive dialing, telephony integration, and universal queuing. Application Development and Deployment Market Definitions Structured Data Management Software Structured data management software includes products that manage a common set of defined data that is kept in one or more databases (structures of managed data shared by multiple application programs) and is driven by data definitions and rules, whether this involves single databases accessed directly by applications or distributed databases accessed by multiple applications in multiple locations. The distinguishing characteristic of all structured data management software products is that they use definitions of data structure and behavior along with rules governing their integrity, validity, security and, in some cases, alternative formats to manage the storage, movement, and manipulation of data kept in databases. The user community for structured data management software typically includes database administrators, data modeling analysts, data administrators, and developers of database-intensive applications. Relational Database Management Systems The relational database management system (RDBMS) market includes multiuser DBMSs that are primarily organized according to the relational paradigm and that use SQL as the foundational language for data definition and access. Also included are RDBMSs that have been extended to support embedded tables or other nonrelational enhancements or to include extended attribute types (such as graphical, geospatial, and audio), object-oriented formalisms (such as data encapsulation), or direct support for XML data IDC #

174 Nonrelational Database Management Systems Nonrelational database management systems (NDBMSs) are those that are not based on the relational paradigm. They use a variety of other approaches to the organization, management, storage, and retrieval of data. Types of nonrelational DBMSs are as follows: A prerelational DBMS market is a multiuser DBMS that is accessed using explicit navigation of the structure by the problem program and is typically organized using either the CODASYL or a proprietary structure. List-oriented, hierarchical, B-tree indexed, network, and inverted list are examples of organizations included in this category. The data is normally managed and accessed through a proprietary language or API, though most of these products also support access through standardized interfaces such as SQL, ODBC, JDBC, ADO.NET, Java Entity Beans, and various Web services. A postrelational DBMS has an internal structure that requires physical navigation, similar to a prerelational DBMS, but has layered over that structure a set of access and management services that operate according to one or more abstraction paradigms, which usually include both relational and object oriented. These products typically have proprietary DDL and DML and sets of APIs or drivers but can be accessed using standard SQL and other standard interfaces as well. Although they may support object-oriented data definition and manipulation, they differ from object-oriented DBMSs in that they make the database an explicit external service to which the application connects through an API or service layer. By contrast, object-oriented DBMSs enable the user to define database components as classes within the application object model and to manipulate the database through methods inherited from a DBMS class library, thus making the DBMS itself an implicit service of the application's environment. Object-oriented DBMSs are designed to provide data storage and support services using an object-oriented architecture. An object-oriented DBMS (OODBMS) supports the basic features of object-oriented development, including inheritance, polymorphism, encapsulation, and state. Unlike the other types of DBMSs, the OODBMS provides an implicit set of services associated with classes in the application object model that have been identified as "persistent," so there is no API, DML, or service call to be invoked by application code. Because of the intimate relationship between the OODBMS data organization and the application, its database schema must be aligned, either implicitly or explicitly, with the class structure of the application. Also, an OODBMS must explicitly support (through header files and runtime libraries) each language to be used with it. These languages typically include Smalltalk, C++, C#, and Java. The XML database management systems market includes native XML database management systems, which decompose XML documents into data structures based on their tag structures and store them in an internal data storage facility that has been optimized for XML tag based retrieval. Such facilities typically include the capability to convert XML documents into XML documents of other types, driven by XSL or other mapping specifications. 168 # IDC

175 Although the XML DBMS can support XML schemas and optimize its operation based on such schemas, it does not require schematic definition of a given XML document to consume, store, organize, and index its content. This market also includes XML data search and retrieval facilities that are driven by XML schemas. It does not include XML-based end-user query tools, access integration middleware, or analytic applications that may happen to use XMLbased access protocols. This market also does not include software that simply serves as a relay or remote connection facility between programs and XML files. Nor does it include software that has as its sole or principal purpose the ability to provide online content services for end users where the content just happens to be coded in XML. End-user DBMSs enable end users to define and manage their own data without any need for formal database administration. Such DBMSs typically reside on desktop operating environments or on servers for setup and use by knowledge workers either individually or in collaboration with others. These tools typically include a DBMS engine tightly integrated with a scripting language and report writer, which provides a localized environment for data management and analysis. Nonschematic database management systems store structures that are inferred from data presented in a key-value pairing format, such as commaseparated values, or spreadsheet tables. They support both queries and searches against this data. They are most commonly used to dump large amounts of data into the database where it may be searched, analyzed, interpreted and, in some cases, normalized into regular data structures. These databases are most commonly deployed in environments that involve clusters or grids of systems using large memory models and drive services offered over the Internet. There are several open source initiatives involved, such as HBase, which serves as the database for the HADOOP environment. There are also commercial offerings, and these represent the bulk of revenue in this market. Database Development and Management Tools Database development and management tools are used to develop, load, reload, reorganize, recover, or otherwise manage and optimize databases and to maintain replica databases for recovery, performance, or availability purposes. Tools used to archive, mask, and subset database data also belong to this market. This category also includes database-specific accelerators, SQL optimization tools, database security, and other database utilities. This market includes the submarket segments that follow: Database administration tools. This submarket includes database monitoring and tuning tools and other tools for performing routine database administration (DBA) tasks such as reorganizations, rebuilding indexes, reallocating database storage, changing and redefining indexes, and tuning optimization options, and so on IDC #

176 Database replication software. This software is used for maintaining an exact copy of a live database or a subset of a live database, typically for recoverability, high availability, or nonstop maintenance purposes, or to distribute the database workload or isolate workload components by segregating them and assigning them to separate, replicated instances. Database archiving and ILM software. Products in this segment are used to manage the evolution of data from its creation to removal from the database and include database subsetting, data masking, and test data generation tools as well as tools that build and maintain archives of databases, often allowing transparent access to archived data, preserving original schema information about archived data and intelligence for selecting referentially complete subsets of data for archiving. (Such products can also be used to create referentially complete subsets of databases for populating subset or test databases.) Database development and optimization software. This segment includes database management software such as SQL authoring tools and SQL optimization and analysis tools. It also includes software for database security, database caching, and database acceleration. Data Integration and Access Software Data integration and access (DIA) software enables the access, blending, and movement of data among multiple data sources. The purpose of data integration is to ensure the consistency of information where there is a logical overlap of the information contents of two or more discrete systems. To achieve a total solution, data integration software employs a wide range of technologies, including, but not limited to, data profiling; data quality; extract, transform, and load (ETL); semantic mediation; and associated metadata management. Data access is enabled by data connectivity software (which includes data connectors and connectivity drivers and also federated data access software). DIA software may be used in a wide variety of functions. The most common is that of building and maintaining a data warehouse, but other uses include enterprise information integration, data migration, database consolidation, master data management (MDM), and database synchronization, to name a few. Data integration may be deployed and executed as batch processes, typical for data warehouses, or in near-real-time modes for data synchronization or dedicated operational data stores. Although most applications of DIA software are centered on structured data in databases, they may also include integrating data from disparate, distributed unstructured or semistructured data sources, including flat files, XML files, and legacy applications, and the proprietary data sources associated with packaged applications from vendors such as SAP and Oracle. The data integration and access software market includes the following submarkets: 170 # IDC

177 Bulk data movement software commonly referred to as extract, transform, and load (ETL) software selectively draws data from source databases, transforms it into a common format, merges it according to rules governing possible collisions, and loads it into a target. This software normally runs in batch but may also be invoked dynamically by command. Dynamic data movement software is typically invoked dynamically, in what vendors refer to as "real time" functionality. It is normally driven by a change data capture (CDC) facility that is either log or agent based and actively moves data among correspondent databases driven by metadata that defines interrelationships among the data managed by those databases. The software performs transformations, routes the data to the target, and inserts the data. It normally either features a runtime environment or operates by generating the program code that does the extracting, transforming, and routing of the data and updating of the target. Domain-based matching and cleansing software includes purpose-built software that can interpret, deduplicate, and correct data in a specific domain. The two most common such domains are customer and product, although these are not the only ones. The largest vendors in this submarket provide products that manage mailing lists and feed data into customer relationship management systems. A few vendors in this submarket also offer general data quality software. General data quality tools include products used to identify errors or inconsistencies in data, normalize data formats, infer update rules from changes in data, and match data entries with known values, as well as for other activities involved in ensuring the validity and consistency of data on the one hand or schematic details of data not incorporated in the database catalog on the other. Such activities are normally associated with data integration tasks, such as data mergers and federated joins, but may also be used to monitor the quality of data in the database. Data access infrastructure software is used to establish connections between users or applications and data sources without requiring a direct connection to the data source's API or hard-coded database interface. It includes ODBC and JDBC drivers and application and database adapters. Composite data framework software enables multiple clients (usually applications, application components, or databases running on the same or different servers in a network) to share data in a way that reduces latency. Usually involving a cache, this software sometimes also provides transaction support, including maintaining a recovery log. This segment includes federated database software, which permits the access of multiple databases as if they were one database. Most are read only, but some provide update capabilities. Virtual database products are similar but offer full schema management coordinated with the source database schemas to create a complete database environment that sits atop multiple physical databases. This segment also includes master data definition and control (MDDC) software, which helps organizations define and maintain master data, which is reference data of enterprise significance that is managed across multiple applications and databases IDC #

178 Master data definition and control software includes products that help organizations define and maintain master data, which is of significance to the enterprise and multiple systems. Master data definition and control software manages metadata regarding entity relationships, attributes, and processing rules to ensure the integrity of master data for where it is to be used. Key functionality includes master data modeling, import and export, and the definition and configuration of rules for master data handling such as versioning, access, and synchronization. Master data definition and control products can include operational orchestration facilities to coordinate master data management (MDM) processes across multiple information sources in either a batch, service, or event-based context. Master data definition and control software provides capabilities to facilitate single or multiple master data entity domain definition and processing and usually serves as the core technical component to a broader master data management solution (a competitive market in the IDC taxonomy). Application Development Software The application development software markets include software, tools, and development environments used by developers, business analysts, and other professionals to create both Web-based and traditional applications. Development languages, environments, and tools; business rules engines; and modeling and architecture tools are included. Application development software also encompasses markets pertaining to component-based development and includes the specific markets discussed in the sections that follow. Development Languages, Environments, and Tools The development languages, environments, and tools market represents the convergence and integration of interactive or integrated development environments (IDEs) with visual interfaces as well as rapid application development (RAD) tools and environments, higher-level languages (including 3GLs and 4GLs), and componentbased development (CBD) tools. It also includes the tools that help automate various aspects of developing applications from components and within component framework environments. This market does not include tools whose primary function is to support formalized modeling and business rules methodologies that assist in generating application requirements, data definitions, and programming specifications. The development languages, environments, and tools functional market includes: IDEs. IDEs are the environments through which developers access the various tools available to develop in any given language or framework, or a combination thereof. IDEs are increasingly multifaceted, encompassing multiple stages of the development and multiple languages and tools to control them in one graphical user interface. 172 # IDC

179 3GL tools. 3GL tools encompass traditional programming languages, such as Java, C++, COBOL, and FORTRAN. 3GL products include all third-generation (object oriented and nonobject) procedural language tools, such as edit, compile, and debug tools, that are used in the context of an integrated 3GL development environment. C++, Java, and COBOL continue to be the primary 3GL languages that developers use to produce business technology solutions. RAD tools. RAD tools are nonprocedural, higher-level language-based tools used by professional programmers to build applications. To be considered RAD, a tool must provide a higher level of abstraction than a 3GL, afford dictionarybased application development, and perform semantic consistency checking. Legacy 4GL tools. Legacy 4GLs are defined as early abstracted development environments that were marketed before the advent of visual programming interfaces. Despite the antiquated nature of these environments, many remain in use primarily to address mission-critical business functions. Managed languages. Managed languages are those that include higher levels of functionality included in their runtime that ensure safe type-checking and memory management. In most cases, managed languages compile to intermediate languages (e.g., Java Bytecode or Microsoft's Common Intermediate Language [CIL]), which permits the interoperability of different languages through the sharing of a common lower-level infrastructure framework. Component-based development tools. Component-based development, construction, and assembly tools are primarily used for the construction of software components and/or the assembly of software components into larger components, services, or applications. Component frameworks. Some companies package components in the form of an open architecture component technology, often referred to as frameworks. Composite development and assembly platforms. Composite development and assembly platforms include technologies that facilitate the construction of composite services or composite applications that are highly standards compliant. These technologies are characterized by a contextual configurationbased approach to development. Some of the tools designed to address mashup configurations are included in this category. Web design and development tools. Web design and development tools provide Web site and Web page layout and design, object integration for site and page development, and the tools needed to create Web-based applications on both the client and the server side including the associated scripting and dynamic languages used for this purpose. Although HTML editing is often provided, tools in this category typically offer visual abstraction away from HTML through WYSIWYG page editors, animation and other rich media, JavaScript and/or VBScript features, Asynchronous JavaScript and XML (AJAX), simple data integration, and deployment scenarios. This market aggregates both client-side and server-side languages and frameworks such as PHP, Python, and Ruby On Rails IDC #

180 Software Construction Components Software construction components are functionally specific software subassemblies and libraries sold apart from a programming development environment that may or may not be designed for use with a specific programming development environment. Examples include class libraries, frameworks, ActiveX controls, Java applets, JavaBeans, Enterprise JavaBeans (EJBs), DLLs, and other forms of API-specific libraries. Software components that fall into this category are intended to be used by developers to assemble applications as opposed to fully functional applications that are intended to run on their own. Business Rules Management Systems Business rules management systems (BRMSs) are defined as discrete systems that define, manage, and execute conditional logic in concert with other IT processes and actions. BRMSs are well known for their ability to automatically recognize the interrule relationships that evolve as rules are added or changed, thereby eliminating the need for the careful and complex rule sequencing and conflict resolution that would otherwise be necessary. M odeling and Architecture Tools Modeling and architecture tools (MAT) software includes those tools that support the design and analysis of applications and systems that reside in the IT domain. These tools may also define information regarding an organization's business architecture or leverage functional requirements to provide a context for the design and analysis of IT applications and systems. A fundamental characteristic of MAT tools is their internal support for objects, relationship, and patterns. This enables an architectural tool to convey an accurate and consistent understanding of IT assets from current, future, and differential perspectives. The MAT market includes the following submarkets: Data modeling (DM) tools address database design, development, and master data management. Object modeling (OM) tools address application design largely using UML notation. The primary use cases for these tools are enterprise application development or real-time and embedded system development. Business process modeling (BPM) tools address process model and/or eventdriven model design largely using business process modeling notation (BPMN) and other process or event-oriented notations. Enterprise architecture (EA) tools support the definition and alignment of an organization's business architecture, application architecture, information architecture, and technical architecture. Quality and Life-Cycle Tools Quality and life-cycle tools support the process of software development and deployment. This category includes the specific markets discussed in the sections that follow. 174 # IDC

181 Automated Software Quality Tools Automated software quality (ASQ) tools support software unit testing, system testing, or both; they also support software quality assurance. Functions such as test specification, generation, execution, results analysis, and "bug tracking," as well as test and QA management, are included in this category. Software Configuration Management Tools Software configuration management (SCM) tools are used by application development organizations to provide software revision control and versioning capabilities. More sophisticated functions such as process management, change request tracking, requirements management, and distributed team development support may also be included. Application Server Middleware Application server middleware is the foundation of modern applications, whether custom developed or packaged. It is also the foundation for many types of software infrastructure, such as portals, content management systems, or enterprise service buses (ESBs). This middleware executes application logic, mediates access to data sources, and provides quality of service (QoS) to offer scalability, performance, reliability, and security to applications. Applications built on modern application server middleware are used over TCP/IP networks and are built using standard frameworks, such as Java Enterprise Edition (JEE),.NET, and Spring. Older legacy application server middleware is deployed on mainframes. This class of middleware also offers ancillary capabilities associated with tooling for Web application configuration as well as synchronizing content for Web applications. Application Server Software Platforms Application server software platforms (ASSPs) are middleware that host application logic and provide common services that allow the application to operate effectively. Application servers provide a common programming model, such as JEE,.NET, Spring, CICS, or CORBA, that developers use to build their application. By using an application server, developers gain access to extensions that include connectivity between the presentation layer, network, operating system, and database as well as with other application servers as part of a distributed system. In addition, the application server offers QoS for such things as transaction processing reliability, throughput, scalability, security, and management. ASSPs are the foundation of modern applications, whether custom developed or packaged. They are also the foundation for many types of software infrastructure, such as a portal, content management system, or certain brands of ESB IDC #

182 ASSP revenue is not counted in the revenue model when it is embedded in other software. For example, when a portal is built on an application server but sold as a portal, the application server software portion is not counted in this market. However, when an ERP is purchased separately from the application server required to make it run, the ASSP revenue is counted. Where ASSP is part of a multipurpose product, such as Microsoft Windows Server 2003, and we can determine what portion of the software is used as an ASSP, we will include that portion in ASSP revenue. Transaction Processing Monitors Transaction processing monitors (TPMs) mediate and optimize transaction processing between clients and a mainframe database. TPMs have evolved to the point where they currently can act as application servers for legacy mainframe and client-server applications. Other Application Server Middleware Other application server middleware includes application server middleware categories not yet large enough to be considered a standalone market. Integration and Process Automation Middleware The integration and process automation middleware markets include tools used by developers, business analysts, and administrators to automate processes, create and deploy process-centric applications, integrate applications, exchange data between enterprises, and monitor the business and process performance of these applications and automated processes. This middleware is deployed on premise as software implemented on servers, in appliances, and as hosted offerings fitting into the software-as-a-service model. In the IDC taxonomy, there are four specific types of integration and process automation middleware, along with an "other" category that includes legacy software and integration-related middleware not yet large enough to be categorized in a standalone market: Business-to-business (B2B) middleware Enterprise service bus and connectivity middleware Event-driven middleware Process automation middleware Other integration and process automation middleware Business- to- Business Middleware B2B middleware consists of software and services used to receive, route, and convert standards-based structured inter-enterprise files and messages related to transactions: 176 # IDC

183 B2B gateway middleware is software deployed on premise used to automate and monitor the inter-enterprise exchange of data. At the heart of these platforms are conversion, translation, and data exchange related orchestration capabilities. Additional features include: More generalized process automation Receipt and delivery of messages Connectivity software Business activity monitoring Reporting Development environment There are strong similarities between B2B gateway platforms and other types of integration middleware. However, the strength of these platforms is in the embedded support of common standard industry models for electronic message exchange, such as electronic data interchange (EDI). In addition, they are optimized to operate at the edge between two or more enterprises, including the ability to send acknowledgements to senders once a message is received. EDI/VANs and B2B Services are secure, private networks that receive, store, and forward structured inter-enterprise messages related to transactions. These services include customizable hosted solutions and SaaS offerings. Many of the vendors in this category also offer end-to-end managed services. Although EDI/VANs predominantly support industries and message standards associated with the supply chain and EDI standards, B2B services include value chains in general, in particular the financial value chain using SWIFT standards. Beyond reliable, secure delivery of messages, features include protocol conversion, message and file translation, monitoring, exception reporting, paperto-digital conversion, and partner self-service, including Web forms for submitting transactions and documents and self-testing capabilities. Enterprise Service Bus and Connectivity Middleware Enterprise service bus (ESB) and connectivity middleware is server software or appliances installed on premise inside a datacenter to integrate applications: Enterprise service bus middleware was created to support application integration for applications built on a standards-based service-oriented architecture (SOA). They operate in request-response and event-driven paradigms. Under the more common request-response model, ESBs receive service consumption requests, route the requests to the correct service provider, transform the requests to a format compatible with the service provider, wait for the results, and deliver them back to the service consumer IDC #

184 In an event-driven model, ESBs receive an event, transform it, and forward it based on routing instructions managed within the ESB. There are many types of ESBs in the market, with orientations based on the preexisting middleware that was used as the basis for the ESB. In addition, there are some ESBs that were built from the ground up to provide services-oriented routing and transformation capabilities. Connectivity middleware is installed on end systems to send and receive data and instructions directly from other systems and via middleware. Depending on how they are deployed, connectivity middleware adapters and sensors can perform transformations prior to delivering the data back to the targeted system or can transfer as is. There are different deployment paradigms for the adapters. They can fetch or deliver data on request. They can be set up to look for new data on a scheduled basis. They can also support an event model in which a data change is automatically captured by an adapter, which generates a message that is published to message-oriented middleware (MOM). Most deployment platform vendors have their own collection of standard or common adapters. They tend to be bundled into the price of platform software and, therefore, are not counted in this category. This category includes the standalone purchase of connectivity middleware. Event- Driven Middleware Event-driven middleware is used to detect events and automatically pass them to applications, systems, and people. An event is a data or application change of state. The technologies that make up event-driven middleware are key components of an event-driven infrastructure, which is implemented to: Predict and detect problems or opportunities at the earliest possible moment they are identifiable. Support automated processes to reduce cycle times and remove waste, errors, and redundancy from an enterprise's operations. Improve the scalability and processing speeds of applications and application infrastructure. Event-driven middleware consists of the following three types of software: messageoriented middleware (MOM), complex event processing (CEP) software, and business activity monitoring (BAM). In essence, MOM can be considered the nervous system that listens for stimuli and informs the brain. CEP is the brain, which contains the short-term memory and executive decision-making ability to send instructions through the nervous system to the appropriate parts of the body. BAM is the eyes of an event-driven infrastructure. In more detail: 178 # IDC

185 Business activity monitoring (BAM) informs users about the current status of areas in which they are interested and notifies them when thresholds are crossed that warrant attention. BAM typically is deployed as a continuously updated dashboard of key performance indicators (KPIs) that describe the metrics that are important to an individual user. There are a variety of graphical displays in which the KPIs are embedded, including standard graphs, heat maps, and process model views. There are also graphical indicators of current performance. While BAM dashboards are typically presented in a portal, notification of out-ofbounds performance is sent out via . In some cases, vendors are taking KPIs and their associated graphical representations and making them available as gadgets that can be displayed in a mashup. BAM is implemented in many scenarios. In this case, we count BAM products sold as a standalone offering, which excludes the embedded BAM sold as part of a BPM suite. Complex event processing middleware manages descriptions of conditions and their state, correlates new events to the conditions, and tests for matches. Once matched, a new event is created and fired off to other systems listening for the event. CEP is used primarily as infrastructure for temporal (time) and spatial (location) applications. A condition describes the relationship of two or more events to each other. These can be simple, such as calculating the impact of a change in stock price over a set time window to see whether it meets a certain threshold, or complicated, such as calculating the impact of a flight delay on all of the systems affected by that delay. CEP products are based on different technologies, with the three most common being: Continuous query software that automatically runs SQL or SQL-like queries upon the receipt of new data Rules engines that apply new data to all the rules and rule relationships Software that allows users to model the condition When a relevant event occurs, message-oriented middleware creates a structured message containing the data of the event, the time the event was created, and the metadata about the event. MOM delivers the message in the following paradigms: Point to point, where one sending system publishes a message directly to a receiving system for processing To a queue, where the message can be picked up for processing by any authorized system Publish and subscribe, which broadcasts messages without concern for whether the event is actually received by any system 2012 IDC #

186 In the latter two paradigms, each message includes metadata that describes the topic or the subject of the message. Subscribers listening for that topic receive all messages that are broadcast out. When a system picks messages off of a queue, it also looks for specific message types, based on the metadata. MOM is also capable of transforming a message to a structure that is compatible with the receiving system. Whether transformation is handled within MOM or by other integration middleware, such as an ESB, is an architectural decision made by the enterprise during system design. Although many vendors offer commodity MOM based on the Java Message Service (JMS) standard, the standalone offerings differentiate and compete on low latency, reliability, and high throughput. Process Automation Middleware A process is the series of activities that accomplish work in a routine way. Process automation middleware is used to define a process, model it, and automate the movement of transactions through all of the necessary activities that make up the process. Process automation middleware also manages the state of work being performed within the process and identifies transactions that are not able to advance through the process' workflow. These exceptions are then handled separately, either through another structured process or through custom or nonautomated activities. This middleware supports straight-through processing (STP), which is a method to move transactions automatically from one system to the next without manual involvement, rekeying, or input from people. STP examples include automated payment processing or trade settlements. Process automation middleware also automates people-oriented activities that require manual steps or human decision making, such as loan approvals or bringing new employees on board. In more detail: A business process management suite (BPMS) includes both a model-centric development environment and a runtime server that include the following capabilities: Process modeling is a graphical environment to describe and document an existing process or a new process. Although not all BPMSs support standard process modeling, the emerging graphical standard to represent the process is the business process modeling notation (BPMN). In a BPMS, process modeling is central to the development environment. Increasingly, the individual activities described in the process model have presentation components, such as forms, and other properties associated to them, and one activity is wired to another within the process modeling environment. Rules or decision services are used when there is a need to determine where the transaction needs to go next for processing. 180 # IDC

187 Process execution is runtime server software that executes the process described in the model and maintains the state of the transaction as it advances through the process' workflow. There are differences in how BPMS products move from a model to the execution of a process as well as differences in standards supported. Some interpret; others compile. Some store a model in XML Process Definition Language (XPDL), while others store as Business Process Execution Language (BPEL). Others do neither. Process monitoring maintains and displays performance statistics about how the process is running. The KPIs are automatically generated within the system. Simulation uses production data, test data, or metrics embedded in the model to run simulations to see how a process or change in process impacts process, business, and system performance. Initially, the simulation may run from assumptions built in the documentation of the model. Once a process is put into production, there is the ability to test changes using production data. Many vendors require the use of simulation to test a change made to a process before it is put into production, particularly where authorized business users make changes to the process. Additional BPMS capabilities include: Task management features that either automatically or manually assign work Forms, including wizards and offline and online capabilities Search, including the ability to find anything about work within a process as well as identify experts Content management capabilities, including storage and retrieval of documents Portal and collaboration features Standalone process servers have a development environment that describes an orchestration or a workflow as well as a process execution environment. However, they do not have the full set of features offered by a BPMS vendor. Specialty straight-through-processing middleware includes many of the components of a system-centric BPMS with embedded logic tied to specific processes. It tends to be an event-driven, high-performance system created for niche areas, such as financial payment systems. Other Integration and Process Automation Middleware This category includes software products and markets not yet large enough to be covered in a standalone category. In addition, it includes some integration categories that cross multiple markets: 2012 IDC #

188 Managed file transfer software provides secure, guaranteed high-speed delivery of a file over a network. The file transfer can be from one enterprise to another or within an enterprise, across datacenters or systems. This software includes the free software that delivers files over file transfer protocol (FTP) and commercial software that offers better security, reliability, and speeds. Other Development and Deployment The category of other development and deployment captures a variety of solutions that help enable specific, various, and often multiple aspects of the development, deployment, information management, application life-cycle, and business and IT architectural and governance activities, and integrated development and deployment platforms (IDDP). IDC does not analyze the other development and deployment software collection of miscellaneous products as a separate market but does include the revenue from this "market" in the overall revenue total for completeness of application development and deployment market coverage. Other Development and Deployment Software Other development and deployment software comprises software tools, utilities, and development environments used by developers, business analysts, and other professionals to support the creation, maintenance, and optimization of applications, information resources, and systems. This "market" is also where revenue is included for integrated products that don't fit within other defined functional markets. For example, an integrated development and deployment platform (IDDP) includes tools that provide application development and deployment capabilities that span multiple functional markets (as described below), are delivered as an integrated platform, and whose revenue cannot be reasonably disaggregated into functional markets. The IDDP market includes vendors that collectively support a wide variety of deployment models including traditional operating environments, cloud environments, and mobile devices. An integrated development and deployment platform must minimally include the following capabilities: A development environment for creating business logic and user interaction A data tier that enables persistent data storage and data access A container for hosting application logic and managing connections A management environment that addresses security and access Because of the wide variety of vendors that reside in the IDDP market segment, forecast and share data for the IDDP market by itself is not meaningful. However, selected vendors from the IDDP market segment do have a material presence in competitive markets such as platform as a service (PaaS) and mobile enterprise application platforms (MEAP). 182 # IDC

189 Data Access, Analysis, and Delivery Software Data access, analysis, and delivery products are end user oriented tools for ad hoc data access, analysis, and reporting as well as production reporting. Products in this category are most commonly used by information consumers or power users rather than by professional programmers. Examples include query, reporting, multidimensional analysis, and data mining and statistics tools. The data access, analysis, and delivery markets are defined in the sections that follow. End- User Query, Reporting, and Analysis Query, reporting, and analysis software includes ad hoc query and multidimensional analysis tools as well as dashboards and production reporting tools. Query and reporting tools are designed specifically to support ad hoc data access and report building by either IT or business users. This category does not include other application development tools that may be used for building reports but are not specifically designed for that purpose. Multidimensional analysis tools include both online analytical processing (OLAP) servers and client-side analysis tools that provide a data management environment used for modeling business problems and analyzing business data. Packaged data marts, which are preconfigured software combining data transformation, management, and access in a single package, usually with business models, are also included in this functional market. Advanced Analytics Software Advanced analytics software includes data mining and statistical software (previously called technical data analysis). It uses technologies such as neural networks, rule induction, and clustering, among others, to discover relationships in data and make predictions that are hidden, not apparent, or too complex to be extracted using query, reporting, and multidimensional analysis software. This market also includes technical, econometric, and other mathematics-specific software that provide libraries of statistical algorithms and tests for analyzing data. Although statistics products vary in sophistication, most provide base-level functions such as frequencies, crosstabulation, and chi square. This market also includes a specialized form of statistical software focused on functional areas such as the industrial design of experiments, clinical trial testing, exploratory data analysis, and high-volume and real-time statistical analysis. Spatial Information Management Software Spatial information management software (also called geographic information system [GIS]) includes tools for data entry/conversion (surveying/cogo, aerial photo rectification, remote sensing, GPS, and others), mapping/spatial query, and business analysis. System Infrastructure Software Market Definitions System infrastructure software is divided into four primary categories: system and network management software, security software, storage software, and system software. These categories are discussed in the sections that follow IDC #

190 System and Network Management Software System and network management software is used to manage all the computing resources for the end user, small business, workgroup, or enterprise, including systems, applications, desktop and client devices, and the network infrastructure. This market does not include storage management software. System and network management software is further segmented into the categories discussed in the sections that follow. Event Management Tools Event management tools automate the analysis and response of the systems to nonscheduled system and application events. Included are console automation products, global event management applications, event correlation and root cause analysis software, and event-action engines. This category does not include automation of responses to scheduled events. Workload Scheduling and Automation Software Workload scheduling and automation software manages the provisioning, placement, and execution flow of work on systems as well as the provision of images, operating systems, and applications on to physical and virtual servers. The tools bring automation and centralized control to executing the steps contained in IT workloads and processes and infrastructure and application provisioning. This category includes traditional calendar-driven schedulers and event-driven schedulers, as well as workflow engines, run-book automation software, self-service portals, and server/application provisioning software. It also includes workload balancing applications working at the application (rather than system) level. This functional market is specific to IT processes and does not include business process automation. Nor does it include workload balancing applications that work at the system level (e.g., high-availability software). Output Management Tools Output management tools automate the production, distribution, and management of computer-generated information. Included are printer spoolers, fax servers, output management tools, and applications to manage the dissemination of output. The term output includes not only hardcopy devices such as printers and fax machines but also other destinations such as pagers, , and Web pages. This category does not include workflow applications or packaged online viewing applications for specific vertical industries. Performance Management Software Performance management software is used for capacity planning, performance data collection, performance tracking, and simulation software, as well as service-level management software when applied to systems and applications. It also includes resource accounting software for resource utilization tracking and reporting and ISspecific financial management and planning. 184 # IDC

191 Change and Configuration Management Software Change and configuration management software provides management of system, client, desktop, and peripheral hardware and software assets but not network devices. Software for planning, tracking, and applying system hardware and software changes is also included, as is software distribution, hardware and software discovery and inventory, license management, settings and state management, and auditing. Problem Management Software Problem management software tracks, records, and manages problems related to the IT infrastructure and operations. This category includes IT help desk applications and related problem determination and resolution applications, including knowledge bases. This category is separate from externally focused problem resolutions solutions within customer relationship management. To the extent that IT Infrastructure Library (ITIL) and IT service management based solutions help in the resolutions of problems, those functions are included here as well. Network Management Software Network management software includes solutions for managing the network components of enterprise infrastructures. It includes two categories: network performance management and network operations management. The products within network management often and increasingly will integrate with cross-domain infrastructure management tools such as service desks, application management, systems management, and business dashboards across multiple platforms and topologies, including data, voice, video, traditional networks, and wireless networks. Network management includes solutions that manage network availability by collecting and correlating events, service levels, alarms, response times, and performance. It also includes network configuration management products that manage, control, and audit changes to the network infrastructure. However, solutions solely for network service providers are excluded. Security Software The security software market includes a wide range of technologies used to improve the security of computers, information systems, Internet communications, networks, and transactions. It is used for confidentiality, integrity, privacy, and assurance. Through the use of security applications, organizations can provide security management, access control, authentication, malware protection, encryption, data loss prevention, intrusion detection and prevention, vulnerability assessment, and perimeter defense. All these tools are designed to improve the security of an organization's networking infrastructure and help advance value-added services and capabilities. Security software includes traditional security software as well as security software-as-a-service offerings. The market covers both corporate and consumer security software. Identity and Access Management Identity and access management (IAM) is a comprehensive set of solutions used to identify users in a system (employees, customers, contractors, and so on) and control their access to resources within that system by associating user rights and restrictions 2012 IDC #

192 with the established identity. Subcategories of the IAM market include Web single sign-on (WSSO) and federated single sign-on (FSSO); host/enterprise SSO; user provisioning, including granular authorization and policy rights and privileged identity management; risk and entitlement management; advanced authentication software (e.g., PKI); and legacy authorization, such as RACF and ACF-2; and Personal Portable Security Devices such as secure smart cards and OTP tokens. Software licensing and authentication tokens (SLATs) are now classified as a separate subcategory within IAM. These are parallel/serial port tokens or USB keys that authorize the use of software on a particular device. Secure Content and Threat Management The secure content and threat management (SCTM) market highlights the increasing unity between previously dissimilar security disciplines. SCTM products defend against viruses, spyware, spam, hackers, intrusions, and the unauthorized use or disclosure of confidential information. SCTM includes four specific product areas, as follows: Network security includes enterprise firewall software, network intrusion detection and prevention software, unified threat management software, and IPSec/SSL VPN software. Endpoint security covers both the corporate and the consumer segment. The market includes client antivirus software, file/storage server antivirus, client antispyware software, personal firewall software, host intrusion prevention software, file/disk encryption, and endpoint DLP. Messaging security includes both software and SaaS platforms. The security technologies include antispam, antimalware, content filtering, and data loss prevention (DLP). Web security includes both software and SaaS platforms. The security technologies include Web filtering, Web antimalware, Web application firewall, Web 2.0 security, and Web DLP. Security and Vulnerability Management Software Security and vulnerability management is a comprehensive set of solutions that focus on allowing organizations to determine, interpret, and improve their risk posture. Software products in this market include those that create, monitor, and enforce security policy; determine the configuration, structure, and attributes for a given device; perform assessments and vulnerability scanning; provide vulnerability remediation and patch management; aggregate and correlate security logs; and provide management of various security technologies from a single point of control. Other Security Software Other security software covers emerging security functions that do not fit well into an existing category. It also includes some of the underlying security functions, such as encryption tools and algorithms, that are the basis for many security functions found in other software and hardware products. Also included in this category are products that fit a specific need but have yet to become established in the marketplace. Products currently in this category will either grow into their own categories or eventually be incorporated into the other market segments. 186 # IDC

193 For 2011, areas covered by other security software include, but are not restricted to, encryption toolkits, security product verification testing, storage security, Web services security, and secure operating systems. Note that the products covered here are only those that do not qualify for one of the more established categories. Storage Software Storage software manages and assures the accessibility, availability, and performance of information stored on physical storage media. This category does not include operating systems or subsystems. The storage software secondary market is broken down into eight functional software markets, as described in the sections that follow. Data Protection and Recovery Software Data protection software includes revenue from licensed software and online data protection services (also known as online backup) licensed in a subscription fashion. Data protection and recovery software is focused on protection, restoration, and recovery of data in the event of physical or logical errors. Included within the data protection and recovery market are data protection, continuous data protection (CDP), bare metal restore, virtual tape library (VTL), and backup/recovery reporting products: Data protection software and add-on modules schedule a point-in-time copy of a defined data set to tape, disk, or optical devices and are used to recover part or all of the data set if needed because of logical or physical error or site disaster. Included are library and tape media management tools. Although tape is the most common backup medium, many products support backup to disk, and some take full advantage of the increased recovery performance associated with directaccess disk storage. Backup is often used in conjunction with snapshot and data replication software to improve data protection performance. If using traditional tape backup products, recovering data from a backup set generally requires the initiation of a separate process. Continuous data protection software also referred to as continuous backup pertains to products that track and save data to disk so that information can be recovered from any point in time, even minutes ago. CDP uses technology to continuously capture updates to data in real time or near real time, offering data recovery in a matter of seconds. CDP systems may be block, file, or application based and can provide fine granularities of restorable objects to highly variable recovery points. Bare metal restore software makes a system-level host image from the operating system up to the file system configuration on tape or disk, which is used for system-level recovery of the entire host if needed because of a physical hardware error. Backup products that have a bare metal restore module will be included under the data protection software category IDC #

194 Virtual tape library software presents a virtualized view of physical tape drives and media to a host, thus emulating traditional tape devices and tape formats and acting like a tape library with the performance of modern disk drives. During a VTL process, data is deposited onto disk drives just as it would be deposited onto a tape library, only faster. A virtual tape library generally consists of a virtual tape appliance or server and VTL software that emulates traditional tape devices and formats. Backup and recovery reporting software is designed for heterogeneous, standalone backup reporting and management across different backup applications, configurations, and locations. Reports are generated on backup environment parameters such as backup job status, tape media capacity, and backup performance, and so on. Storage Replication Software Storage replication software includes software designed to create image copies of volumes or files via techniques such as clones, mirrors, and snapshots. Replication may be storage system, server, fabric, or appliance based and may occur locally or between remote sites, potentially separated by long distances. Replication and snapshot software is often used in conjunction with backup software to improve data protection performance. This market does not include database replication software that operates at the database, table, or record level. Host replication software typically resides at the file system or logical volume level within the operating system and makes a point-in-time copy or snapshot of a data set to disk used for disaster recovery, testing, application development, or reporting. In recovery, replication eliminates the intermediary step of a restore process. System and data migration software is block-based or file-based migration software used to migrate data from one platform to another for system upgrades and technology refreshes, moving the data to a new platform. Fabric and appliance-based replication software makes use of intelligent switches and heterogeneous array products to provide block-level replication within the SAN. The intelligent switches have technologies that perform the volume management and replication process and eliminate the overhead on the host while providing any-to-any replication. It also includes a software component to appliance-based replication. Array-based replication software makes a block-based point-in-time block copy or snapshot of storage to disk used for disaster recovery, testing, application development, reporting, and other uses. Replication management software is used to control, monitor, and/or schedule the point-in-time copies made by the replication product. It may automate various replication tasks, such as sync, split, and mount. 188 # IDC

195 Archiving Software The archiving software market includes software that provides policy-based controls for copying, moving, purging (delete from primary storage), retaining (in read-only fashion for a defined period), and deleting (delete from secondary storage) data. Some tools provide for more sophisticated functions such as content-based data management, indexing, and search/retrieval. Archiving software makes tiering decisions based on file properties and business rules, but not file properties alone. Business rules may be based on metadata such as custodian of information, business unit of origin or indexed content. Archiving software typically requires software on a host to manage the archiving process. All archiving products except those that perform database archiving are included in this market. archiving software includes specialized archive software products that integrate with collaborative systems through APIs to migrate , based on policy, to a secondary archive. Included in archiving software are functions for retention and searching. File archiving software automates, based upon a defined policy, the migration of data to a different tier of storage and media and automatically recalls files back to primary storage when required for application or user access. File archiving software creates, based upon a defined policy, a copy of a data set or a group of files that are transported to an alternate location or committed to long- or intermediate-term storage. Original copies of the data set may be deleted when the archive is created to free primary storage space, or they may be left in place if frequent access is expected. File System Software File system software provides the organization and structure for storing and retrieving data as files, folders, and directories. Software covered in this market segment includes standalone, distributed file systems that are platform independent and the primary purpose of which is to provide access to storage. These file systems support sophisticated intersystem record and file locking capabilities. Products include clustered file systems, wide area file systems, and file virtualization. Storage and Device Management Software Starting with calendar year 2011 published market shares, IDC will combine storage management software with storage device management software to create the new functional market entitled Storage and Device Management Software. SRM and heterogeneous SAN management software is software designed for heterogeneous, end-to-end discovery; topology mapping; capacity utilization; and performance reporting, planning, monitoring, and management. It includes software modules for advanced functions such as storage provisioning, host-level reporting, file-level analytics, application and file system integration, and event management. To qualify as a storage management product, the product must provide for the management of a diverse set of storage systems, storage switches, servers, and applications. Device management tools that provide discovery and configuration of a single device type or asset are not included IDC #

196 SRM and SAN management software for homogeneous environments is designed for homogeneous, end-to-end discovery; topology mapping; capacity utilization; and performance reporting, planning, monitoring, and management. It includes software modules for advanced functions such as storage provisioning, host-level reporting, file-level analytics, application and file system integration, and event management. Storage device management software performs a specific set of functions for a specific, homogeneous brand or class of storage device. Device management software utilities capture basic information on the storage device and tend to support only that device or device family (not a heterogeneous management tool). The functions provided by device management software include storage device discovery, configuration, and management, with basic levels of reporting. It includes software used to control the configuration and management of disk devices, storage arrays, and networks as well as the associated utilities, element managers, and agents. This market also includes utilities for low-level disk device functions such as optimization, defragmentation, and compression. Other Storage Management Software provides standalone storage management functionality such as predictive change management, performance management, problem management, capacity planning, forecasting, or SLA management. Storage Infrastructure Software Storage infrastructure software includes virtualization and volume management, storage access and path management software and automated storage tiering software. Virtualization and volume management software enables device- and networkindependent management of storage or data. It isolates and abstracts the internal details of storage systems and services and simplifies storage management by masking physical complexities from servers, applications, and other network resources. Such software is frequently used for pooling or aggregating storage or to add new capabilities to available storage resources. Virtualization and volume management may be storage system, server, fabric, or appliance based and frequently can occur simultaneously in more than one of these locations. Only software sold as a separate software product or option is included in this market. Access and path management software provides for storage path and access configuration, management, load balancing, and failover on path failure. Only software sold as a separate software product or option is included in the revenue for this market. Automated storage tiering software enables the automated movement of data sets between differing tiers of storage resources. This may occur at the volume level or at a sub-volume level. Tiers may be defined by performance, capacity, and/or resiliency requirements of the data/applications. 190 # IDC

197 Other Storage Software Other storage software covers storage software functions that do not fit well into an existing category. Also included in this category are products that fit a specific need but have yet to become established in the marketplace. Products currently in this category will either grow into their own categories or eventually be incorporated into the other market segments. System Software System software is the foundation of software products that collectively operate the hardware on which business applications are built. Market definitions are discussed in the sections that follow. Operating Systems and Subsystems Operating system and subsystem software includes the machine-level instructions and general-purpose functions that control the operation and use of CPU resources (both centralized and networked). These operating systems quite often also include network services such as Dynamic Host Configuration Protocol (DHCP) for IP address assignment, distributed naming services (DNS) software (which provides a shared database of system resources and access control information), and directory service software (such as Microsoft's Active Directory or LDAP services), as well as other integrated network facilities such as print and file services. Availability and Clustering Software Availability and clustering software virtualizes the system services of multiple systems (physical servers or virtual servers) so that they appear in some sense as a single computing resource. This market includes failover clustering software, which maintains a "heartbeat" between the linked servers and restarts workloads on alternate servers if the heartbeat (or the lack of it) signals that one of the servers is offline. It also includes cluster managers and compute farm managers, as well as load balancing software and application virtualization software that stands between the user request and the processors or systems that are supporting applications or services. This software determines which processor or system has the most available capacity and routes the workload to that computing resource. Virtual Client Computing IDC defines virtual client computing (VCC) as a client computing model that leverages a range of software and virtualization solutions to improve upon the limitations associated with the traditional distributed desktop environment. The VCC model encompasses three client virtualization technologies, which are discussed in the following bullet points: Desktop virtualization technologies utilize hypervisor to decouple an operating system from the host hardware and isolate the specific client environment from other Oss running aboard a physical device. There are two types of desktop virtualization technologies: 2012 IDC #

198 Centralized virtual desktop (CVD, or more commonly known as VDI) is a form of server-based computing; it utilizes server-grade hypervisor to host multiple unique and isolated client operating systems aboard a single server or group of servers in the datacenter environment. The virtual desktops are delivered to end users' devices via the network. Distributed virtual desktop (DVD) leverages client-grade hypervisor and/or host operating systems in an isolated environment on a distributed client device, such as a laptop. Therefore, the virtual machine resides on the local client hardware. Application virtualization software encapsulates and isolates an application from its underlying host operating system, as well as from other local applications running within a client environment. Virtual user session (VUS) software runs on servers and creates within the operating system a user interface that is virtualized for distribution to a nonnative environment. Virtual Machine Software Virtual machine software, also known today as hypervisor software, either uses lowlevel capabilities offered by certain hardware environments or installs a complete hardware emulation layer using software to support multiple operating environments and the related stacks of applications, application development and deployment software, and system infrastructure software. This segmentation is often referred to as virtualization or partitioning. Each of the client or server operating environments is allowed to believe that it controls the entire machine, but resources are actually allocated on the basis of rules established either at the time of configuration or dynamically by related management software. Thus, multiple operating systems, even those from different vendors, can now share the same machine without awareness of the proximity for other operating systems on the same physical hardware. Virtual machine software is most commonly installed on servers to host either server or desktop virtual machines (as the back end for centralized virtual desktops), but hypervisors are also increasingly being used on personal computing and mobile devices. Hypervisors also increasingly serve as the foundational infrastructure software for public and private clouds. Virtual machine software can be used by cloud service providers to provide virtual machines as a service. Other System Software Other system software is infrastructure software for systems and applications (but not storage) that is not otherwise categorized. Such software is used mainly by system programmers and administrators to perform housekeeping functions and to add functions to operating systems that are not otherwise supplied. Examples include fileconversion utilities, screen drivers and fonts, remote control software, and sort utilities. This category also includes enterprise connectivity software that enables devices to exchange, modify, and/or present host-based network data. 192 # IDC

199 Geographic Area Definitions Worldwide revenue is divided by geographic area. At a high level, or macroregion, areas defined are Americas; Europe, the Middle East, and Africa (EMEA); and Asia/Pacific (including Japan) (APJ). IDC software data products report geographic data at various levels of detail; in some cases, down to individual countries: Americas includes North America (the United States [and all of its political subdivisions] and Canada) and Latin America (Brazil, Venezuela, Argentina, Chile, Colombia, and Mexico). EMEA includes Western Europe (Austria, Belgium/Luxembourg, Denmark, France, Finland, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom) and Central and Eastern Europe, the Middle East, and Africa (Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, Russia, Slovakia, Slovenia, Egypt, Israel, Saudi Arabia, Turkey, United Arab Emirates, and South Africa). APJ includes Asia/Pacific excluding Japan (Australia, China [PRC], Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Vietnam, and Thailand) and Japan. Operating Environment Definitions All software revenue is allocated on the basis of the underlying operating environment. The preferred method is to allocate revenue to operating environments based on where the license revenue is derived (for platform-specific licenses). An alternative method is to allocate revenue based on where the product is run (i.e., based on the percentage of executables on various platforms). may originate from traditional perpetual licensing purchases or through annual subscription or maintenance licensing. Note that operating systems producing no revenue may still be used for deployment of revenue-producing layered software that is subsequently captured in IDC's market forecasts. Operating system revenue from the emerging software appliance market is tracked in this taxonomy as other operating systems are, with software appliance revenue allocated between the operating system and the layered software product markets (if applicable) on a proportional basis. Operating environments include the following: Mainframe environments include IBM's z/os, OS/390, VSE, VM, and z/vm that run on IBM System z and zseries hardware and other single-vendor mainframe operating systems such as those from Unisys, Amdahl, Fujitsu, and Hitachi. Single-vendor, non-unix supercomputer and massively parallel processor environments are also included in the mainframe category IDC #

200 Unix includes all operating systems software that is based on Unix System V, OSF/1, or Berkeley Software Distribution (BSD). This category would include products such as AIX, HP-UX, Apple Mac OS X, Apple ios, SCO OpenServer, SCO UnixWare, Solaris, Tru64 Unix, NetBSD, OpenBSD, and other operating systems used primarily aboard RISC-based and Intel architecture based servers, workstations, minicomputers, and clients that are designed to run the Unix operating system. Unix-based supercomputer and massively parallel processor environments are also included in this category. Operating systems that are based on other kernels are not included, even if they have passed the Unix certification test from the Open Group. Note that non-revenue-producing versions of Unix such as FreeBSD are classified as Unix operating systems by this taxonomy for the purpose of allocating revenue-producing layered software by underlying operating system. Linux and other open source environments include all operating systems deployed aboard servers, workstations, minicomputers, and client devices that are based on Linux or other Unix-like open source operating environments. Typically, this software is available both commercially with associated support and maintenance costs and at little or no cost in source code form. Software of this type is usually licensed under the Free Software Foundation's generalpurpose license (GPL) or other licensing that encourages free access to the source code to these operating environments. Note that non-revenue-producing versions of Linux are still classified as Linux operating systems by this taxonomy for the purpose of allocating revenue-producing layered software by underlying operating system. Windows 32 and 64 include all operating systems that support the Win32 APIs and Win64 APIs, including Microsoft's Windows 9x, Windows Me, Windows NT Workstation, all versions of Windows NT Server, Windows 2000 Professional, all versions of Windows 2000 Server, all versions of Windows XP, all versions of Windows Vista, all versions of Windows 7, and all editions of Windows Server 2003, including the release 2 (R2) versions, as well as Windows Server 2008 and Windows Server 2008 R2. In the future, products based on the next wave of Windows development (code-named Windows 8 today) will be included. from both Microsoft and other vendors that run solutions on Windows Azure and SQL Azure will be included on the Windows platform for all functional markets. Information is collected about other operating environments but generally only reported in the aggregate. These other operating environments include the following: i5 and OS/400 include IBM i5, OS/400, and predecessors that operate aboard IBM 3X, AS/400, iseries, and System i family of machines. 194 # IDC

201 Other host/server environments include all other operating systems that are used as either host or server environments aboard server hardware systems. Some examples of operating systems in this category are HP OpenVMS and Novell NetWare, Novell Open Enterprise Server (with the NetWare Kernel), and residual revenue associated with discontinued operating systems, such as HP MPE/iX and IBM OS/2. Embedded operating environments and related subsystems include commercially available products that incorporate the machine-level instructions and general-purpose functions that control the operation and use of CPU resources in smart, embedded, and limited-function devices. Embedded operating environments may either offer some form of a user interface (graphical, text, voice, or other) or include the required services or APIs to allow developers to build their own interface if so required. These environments generally include defined and documented APIs that can be used by application software, which in turn is created by related application development tools. Embedded operating environment products may include both source code and executable/runtime code, or just executable/runtime code, and may offer either real-time or non-real-time operational characteristics. Real time is defined as the ability for the system to respond in a predetermined time to scheduled or interrupt-driven events. Non real time is defined as the ability for the system to respond rapidly enough to respond in less than a second to network or user input. Embedded operating environments tracked by IDC might be specialized versions of generalpurpose operating systems (particularly based on Linux and Windows) but must be commercially available. Special-purpose embedded operating environments that are not commercially available but are integrated into a commercially available hardware product (e.g., Nintendo Game Boys, industrial control systems, and certain automotive control systems) are specifically excluded because the operating system is not available exclusive of the underlying hardware product. Other single-user operating environments include all other operating systems that are used as client or standalone environments. Some examples of operating systems in this category are 16-bit Windows and DOS (including MS-DOS, PC-DOS, and DR-DOS), OS/2, and non-unix versions of Mac OS (generally Mac OS 9.x and earlier). Hardware appliances consist of hardware with an integrated, hardened operating system; a limited applications set; and no user software installation. Appliances differ from pure embedded operating systems in that the operating system used in an appliance is typically a hardware-specific, special-purpose operating system that is not commercially available on a standalone basis from the appliance vendor. However, in some cases, an appliance may be constructed utilizing an embedded operating system that is commercially available from another vendor. Examples of such a configuration include a storage server built using Windows Storage Server 2003, a firewall appliance built upon an embedded version of Windows Server 2003, or a security or networking device built using an embedded version of Linux from, for example, 2012 IDC #

202 Montavista Software or Red Hat. In most cases, appliance devices integrate operating system application software together with application functionality, security management, policy management, quality of service, load balancing, high availability, and bandwidth management. Like the operating system itself, this layered software is in most cases unique and specific to the appliance and not commercially available independent from the appliance itself. However, in certain cases, the layered software may be commercially available from the firm that produced the software. For instance, an appliance based on an embedded version of the Windows operating system may also incorporate certain layered commercial software products from Microsoft. In this context, commercially available operating systems (embedded or general purpose) and commercially available layered software products that are integrated in appliance devices will continue to be tracked in IDC's pure software market segments in addition to being tracked as part of the appliance device. This tracking methodology does not lead to double counting because appliance revenue cannot be combined with pure software revenue due to the differing taxonomical definitions describing these market segments. Synopsis This IDC study provides a comprehensive summary of the worldwide packaged software market for 2011 and a five-year revenue forecast by geographic region and operating environment through Vendor revenue and market share for over 1,000 vendors are provided for This study does not contain detailed information for individual software market segments; that is contained in other IDC studies. "2012 is likely to be the year when software growth begins to decelerate following the post-2008 boom," said Patrick Melgarejo, director, Worldwide Software Trackers at IDC. "It is also the starting year of a positive steady one-digit growth period. Although, following the main technology and social trends, markets such as enterprise social software, virtual machine software, and team collaborative environments will show a high double-digit CAGR until 2016." Copyright Notice This IDC research document was published as part of an IDC continuous intelligence service, providing written research, analyst interactions, telebriefings, and conferences. Visit to learn more about IDC subscription and consulting services. To view a list of IDC offices worldwide, visit Please contact the IDC Hotline at , ext (or ) or [email protected] for information on applying the price of this document toward the purchase of an IDC service or for information on additional copies or Web rights. Copyright 2012 IDC. Reproduction is forbidden unless authorized. All rights reserved. 196 # IDC