Global software sales to hit $189bn, says IDC

Rethink IT, Dec, 2004

A new IDC report predicts that global software sales will reach $189bn by the end of 2004, a 6.2% rise over 2003.

North America will retain its title as the largest software market, but strong growth is predicted in Asia and Central Europe. The use of open source software is also expected to grow, making it the fourth most popular platform by 2008.

IDC predicts new pricing models--like utility computing and niche clusters--will drive future growth in the industry. However, the so-called 'complexity crisis' will keep 2005 growth from reaching double digit rates.

A separate Merrill Lynch survey also predicts only modest growth in IT spending during 2005, with segments like business intelligence, data warehousing, and security pulling in most of the new funds.