Archive for May, 2011

IT services sector bounced back in 2010

May 28th, 2011

Businesses spent 3.1% more on IT services globally in 2010 than in 2009, signalling a recovery from the latest recession. Gartner recorded IT services sales worth $793bn in 2010, compared with $769bn in 2009. In 2009 there was a 5.1% decline in spending, compared with 2008, when the effects of the global recession peaked.

The top five global service providers (IBM, HP, Fujitsu, Accenture, CSC) all increased revenues. Of the five, Accenture saw the biggest increase of 6.1%, while HP had the smallest growth of 0.3%.


Software support sales increased the most in 2010, with a 6.6% increase on 2009 figures, while process management and hardware support grew only 1%. Government spending across the world showed the lowest increase in IT services spending, at a modest 1.6%.


Rationalising software licensing in the virtual age

May 21st, 2011

When it comes to offering simple value-for-money licensing models for a virtual environment, many software suppliers have been dragging their feet, preferring to exploit the mismatch between traditional licensing models and modern systems architectures.

There are exceptions, of course, and some suppliers have been quick to evolve their thinking, but many are still not making it easy. Variation between suppliers then adds to the problem, making it very difficult to create standardised virtual systems that can be deployed predictably anywhere in the datacentre. These restrictive terms often force architectural workarounds to be developed. For example one database vendor’s licencing is written so that if a single virtual machine running a database was deployed on a server, then the entire physical server needs to be licenced. This would have the net effect of tying supported database workloads to a fixed pool of dedicated servers. While this can work well for static consolidation and predictable workloads, it hardly fits the vision of a dynamic private cloud that software suppliers are shouting about.

Enterprise software market growth heralds recovery, says Gartner

May 14th, 2011

The worldwide enterprise software market grew 8.5% to $245b in 2010, signalling a recovery from the recession, says research firm Gartner. The growth contrasts with a 2.5% decline in worldwide enterprise software revenue in 2009, with major software vendors expanding product portfolios and reaching deeper into emerging markets.

Japan and Western Europe saw relatively modest growth, while Latin America and Asia/Pacific saw growth in the mid-to-high teens, nearly double the market average.

Three of the top five vendors had revenue gains above the industry average, with Microsoft holding top position, increasing its global enterprise software revenue share to 22.4%.Growth results were enhanced in 2010 by the broader adoption of new releases of the Windows 7 operating system and Microsoft Office 2010 productivity software.

Microsoft’s results have been improved by strategies aimed not only at individuals, but also at organisations and multiple delivery models. The company is placing more emphasis on enterprise application and infrastructure software programming platforms, says Gartner.

Microsoft reports record third quarter financial results

May 6th, 2011

Microsoft has announced record results for its financial third quarter, delivering a riposte to critics who say that the software giant is losing its lustre behind Apple’s growing success.

The Seattle company reported revenue up 13% year on year to $16,4bn, with net income up 31% to $5.2bn.

The results follow increasing predictions of the slow demise of the PC – the bedrock of Microsoft’s business – with many research firms noting that tablet devices are eroding PC sales. But such forecasts have yet to hit Microsoft.

Office 2010 has become the fastest selling version of the productivity suite, and that Windows 7 has now sold 350 million licences – although Windows revenue was down 7%.

Sales at Microsoft’s business division – responsible for software applications such as Office, Exchange and Sharepoint – grew 21% compared to the same period last year, while server and tools products increased revenue by 11%.

However, experts say that Microsoft is likely to face growing competition in its enterprise markets from portable devices such as tablets and smartphones in coming quarters.