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December 6, 2012

System infrastructure software revenue to reach $39.2bn in 2012: IDC

Virtual Machine and Cloud System Software sub-segment will grow at a rate of 16.7% in 2012

By CBR Staff Writer

System Infrastructure Software (SIS) revenue is expected to grow at a rate of 2.7% and reach $39.2bn in 2012, according to a new report.

IDC’s latest Worldwide System Infrastructure Software 2012-2016 forecast reveals that System Software segment, which is one of the chief components of the SIS market, represents 42% of the overall market.

In contrast, virtualisation application market is expected to rise at a rate of 12.3% in 2013 when compared to 2012 and its market share is expected to rise 20% in 2016 over 14% in 2011, the report revealed.

IDC also forecasts that the Virtual Machine and Cloud System Software sub-segment will grow at a rate of 16.7% in 2012, while it is expected to grow 15.5% in 2013.

Within virtualisation application market, VMware captured 80% of market share during the initial half of 2012 (1H2012) when compared to 2011.

Security Software, which is second largest segment SIS market, is expected to grow 7.6% in 2012 when compared to 2011 and 9.4%in 2013 capturing about 22% market share.

In the endpoint security market, Symantec and Intel will dominate the market, while Kaspersky, Sophos, and AVG will report double-digit growth rate, the report said.

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IDC Security Products research manager John Grady said investments in applications to prevent attacks and mitigate risks have been continually increased even with the current macroeconomic uncertainty.

"As virtualization, cloud, and BYOD technologies continue to expand, the associated security concerns need to be addressed." Grady said.

"IDC expects strong growth in the security market as organizations adopt these emerging technologies and move to secure their deployments."

System and Network Management Software market, which has been the rapid growing segment in SIS, reported a growth of 6.7% year over year during 1H2012.

IBM, CA and BMC have been the top vendors in System and Network Management Software market, while on the basis of market share, HP, Microsoft, and VMware have reported growth in share year over year.

IDC Enterprise System Management Software programme vice president Tim Grieser the future outlook for the overall system infrastructure software market remains positive, although growth rates are impacted by ongoing economic weakness and uncertainty.

"Software that addresses key areas in security and system management will benefit from growth in complexity of distributed, virtualized, and cloud environments," Grieser said.

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