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June 29, 2011

India enterprise software market revenue reaches $2.5bn in 2010: Gartner

Revenue gains above the industry average achieved by Microsoft, IBM, Oracle and VMware

By CBR Staff Writer

The India enterprise software market registered 16.3% growth in revenue to total $2.5bn in 2010, which is significantly higher than 4.2% to $2.1b in 2009, according to IT research firm Gartner.

Gartner principal analyst Asheesh Raina said in 2010, major software vendors expanded their product portfolios, acquired companies where appropriate to their plans, and reached deeper into emerging markets including India.

Revenue gains above the industry average have been achieved by four of the top five vendors, the report, "Market Share Analysis: Enterprise Software, Worldwide, 2010," said.

Microsoft remained at the top as it increased its enterprise software revenue market share in India to 28% in 2010, due to new releases of the Windows 7 operating system and Microsoft Office 2010 productivity software.

IBM followed Microsoft in 2010 as it its software revenue grew more than 15.3% in 2010, mainly due to its WebSphere, Tivoli, Information Mgmt., Operating Systems and Rational brands.

IBM expanded dramatically in 2010 into the applications segment with a focus on e-commerce, marketing and sales with more than 20 industry solution frameworks as its "smarter planet" go-to-market strategy evolves, Gartner said.

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Oracle showed strongest growth (25.2%) among the top five vendors, due to its growth across all software markets, with faster growth emerging from its business intelligence, security, IT operations, and data integration and quality tools offerings.

Oracle has kept most acquired technologies intact while integrating the infrastructure and middleware into Oracle Fusion Middleware (OFM) 11g with some integration across the application portfolio.

VMware led the group of top 25 vendors in India with more than 51% growth in 2010, followed by Cisco with more than 31%. The top 25 vendors accounted for nearly 94% share, or more than $2.3bn, of the overall software market.

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