Gartner: Europe will weigh on enterprise app spending

Firm cuts growth estimate for 2012 segment spending from 5 percent to 4.5 percent

Economic turbulence in Europe and elsewhere in the world is bound to affect spending on enterprise application software this year, research firm Gartner said. In response, Gartner has slightly cut its growth estimate for segment spending this year from 5 percent to 4.5 percent.

The market for enterprise applications software still will be worth more than $120 billion this year, with segments such as enterprise resource planning and cloud and software-as-a-service showing strength, according to the Gartner forecast, but the research firm admitted that the full effect of the economic problems on spending will not be known until after the end of the first half of the year. Enterprise-focused vendors such as Cisco Systems already have admitted that they have concerns about how the lingering European problems will affect IT spending.

Enterprise resource planning remains the largest segment of the enterprise application software market, and Gartner said revenue for that portion should amount to $24.9 billion in 2012. Revenue from office suites was forecast to be $16.5 billion for 2012, while business intelligence products could reap $13 billion, with customer relationship management software also potentially pulling in $13 billion.

Spending on cloud and SaaS services is still a fairly small segment of the market, but its share will grow from about 11 percent of the total enterprise applications software market in 2010 to about 16 percent of the total market in 2015. In a separate recent analysis, Gartner identified cloud-based mobile device management as one of the hottest areas within that particular segment.

Gartner analysts plan to further discuss their 2012 market forecasts during a webinar on July 10.

Even while overall enterprise software spending takes a hit, companies serving the sector have remained pretty ambitious about their own acquisition and expansion plans, largely based on that small, but growing, cloud segment. In recent months, there have been several cloud-related acquisitions, and we have also seen companies that were late to the cloud party, such as Oracle, announcing their initial forays into the segment.

For more:
- here's the Gartner release

Related articles:
Here's a list of earnings from IP-related enterprise vendors
Cisco showed concern about the European economic crisis