Salesforce gets spot on top 10 global software vendor chart

Emergence of cloud specialist as a major player in the software world confirmed by Gartner

Analysts at Gartner have revealed their latest stats on the worldwide software market, revealing the growing profile and importance of software-as-a-service (SaaS) to the channel, as moved onto the top 10 chart for the first time.

Overall, the market was in rude health during 2013, with total revenues up 4.8% over 2012, hitting $407.3m, with developed markets the primary drivers of growth, said Gartner.

With Salesforce’s emergence as a contender confirmed – the fast-growing vendor hit the number 10 spot after growing sales by a third to $3.8bn – Gartner spoke of a multiyear cyclical transition as organisations focused investment on technology that could support existing systems, while taking advantage of cloud and subscription-based pricing to address parts of their business where it made sense to shoot for growth.

The software market has been changing shape over the past five years, and cloud is driving the bulk of this change as software vendors acquire and provide applications and infrastructure technology to support the cloud and the Internet of Things (IoT) movement," said Joanne Correia, research vice president at Gartner. "A clear indicator of this is that for the first time we have a pure cloud vendor in the top 10."

"Investors continue to focus on revenue growth and market share gains as the primary criteria when evaluating vendors," added John Rizzuto, research vice president and Invest analyst at Gartner.

"At this point, the new and emerging technology markets in software, such as digital marketing and public cloud computing, are so nascent that investors are favouring those companies that are early and aggressive in grabbing both market and mind share — in many cases dismissing progress on earnings and cash flow in hopes that they will one day follow."

Microsoft, predictably, led the rankings, making sales of $65.7bn, up 6%, while Oracle moved into second place with $29.6bn in revenues, up 3.4%, driven by investment around big data and analytics.

The rest of the top five spots were filled by IBM, up ¼% to $29.1bn, SAP, up 9.5% to $18.5bn and Symantec, down 0.8% to $6.4bn.

EMC vaulted into sixth place over all, with sales up 4.9% to $5.6bn, while HP saw a 2.7% decline to $4.9bn. VMware was up 14.1% to $4.8bn and CA, down 2.6% to $4.2bn.

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