Indian Software Market Is Worth $4.765B; Oracle Overtakes IBM!
The high demand for enterprise database management systems along with robust growth of ERP systems has made Oracle 2nd biggest Worldwide software vendor in India. For the year 2013, Oracle has overtaken IBM in terms of total revenues and sales, compared to 2012.
Oracle reported $505 million worth of revenues from software sales in India for the year 2013, thus capturing 7.3% of the overall market. Earlier, Oracle had reported that they have achieved 21.5% annual year-on-year growth in India, and the future looks promising for them.
Bhavish Sood, Gartner’s research director said, “Trends around business intelligence and analytics, with increasing customer investments in database management systems, helped drive Oracle’s revenue growth,”
Overall, the Indian Software market has been pegged at $4.765 billion, which is 10% more compared to 2012 ($4.334 billion).
Interestingly, among all the BRICS (Brazil, Russia, India, China and South Africa) nations, India has demonstrated highest growth rate in consumption and creation of software products. In this phenomenon performance, contribution of both small scale businesses as well large scale exports are being mentioned in the Gartner report.
Brazil grew at 7.8%, while China posted a growth rate of 7%. Russia grew at 8.9% and South Africa at 6.3%.
Sood further said, “India is growing faster than other emerging countries, which can be attributed to an export-oriented focus over the last decade. However, recent advances in IT communications infrastructure in the country have opened new avenues for local consumption of IT software and associated services,”
Microsoft is still leading the Indian software industry with revenues of $957.3 million, which represents an annual growth of 10.6%. Microsoft alone has captured 20% of the market share.
At number 2 is Oracle with annual revenues of $505 million, having maximum annual growth rate of 21.5%. And at number three is IBM, which was at #2 last year. IBM clocked annual revenues of $446.6 million, which reflected year-on-year growth of 4.6%.
Other software companies which are in the top 10 position inside India include: SAP ($324.3 million), VMware ($94.4 million), CA Technologies ($52.7 million) and Adobe ($42.5 million). SAS and HP have also made their way into this elite list.
Gartner has said that this incredible growth of software inside India can be primarily attributed to widespread adaption of Cloud technology, which makes deployment and execution relatively easy, and adaption of subscription based services model, wherein payment can be made on per-hour basis.
Microsoft’s Azure is a perfect example of such growth story.