Information technology (IT) spending on enterprise software worldwide, from 2009 to 2021 (in billion U.S. dollars)

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Spending in billion U.S. dollars
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About This Statistic

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2021. In 2017, spending on enterprise software is expected to reach 351 billion U.S. dollars. That same year, expenditure in the global information technology market is forecast at 3,477 billion U.S. dollars, while IT services, the second largest segment behind communications services, is set to reach 922 billion U.S. dollars. Enterprise software is a segment of the information technology market aimed at responding to the needs of larger organizations' core business processes. Generally, enterprise software aims to improve productivity and efficiency, fulfilling the needs of one or more core business processes via a single piece of software architecture. Human resources, accounting, and sales are functions commonly targeted by such programs. The Enterprise application software market encompasses among other things, business intelligence, enterprise resource planning, customer relationship management, supply chain management, and project and portfolio management.

Historically, enterprise resource planning (ERP) software has been the largest segment of the EAS market and revenue from this segment is forecast to reach 32.6 billion U.S. dollars in 2016. However, the ERP sector's dominance may be short-lived, as projections suggest revenues from customer relationship management (CRM) software will surpass ERP software in the coming years. While there are few figures that reveal the current enterprise software market leaders, Microsoft, IBM, Oracle, and SAP have previously held dominant positions, and major Software as a Service vendors such as Salesforce and Adobe should not be discounted.

Within the enterprise resource planning (ERS) segment, SAP and Oracle represent two of the largest vendors, holding over a third of the market between them. In terms of sales, enterprise software is largely sold by vendors under a license and maintenance arrangement. However, as with the broader increase in the cloud or "as a Service" delivery, the proportion of enterprise software revenues generated from cloud subscriptions is also increasing. Estimates suggest that by 2018 almost one dollar in every three generated by the enterprise software market will come from cloud subscriptions.

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