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PeopleSoft and Baan Grow at Twice the Market Rate, Gaining Ground on SAP and Oracle
FRAMINGHAM, Mass., May 21 /PRNewswire/ -- Worldwide software and maintenance revenues for client/server enterprise applications market grew 41 percent worldwide in 1996 reaching $5.4 billion. However, according to new research from International Data Corporation (IDC), growth in this software segment is well below the 68 percent growth vendors enjoyed just one year earlier. Saturation of the high- end market coupled with delayed channel development in mid- and lower-tier markets has resulted in slowed growth. The top 15 client/server enterprise applications vendors also grew at 41 percent, holding onto their collective share of the market. SAP continues to dominate the overall segment though its share slipped one point from last year to 28 percent (see Figure 1). Meanwhile, its most direct competitors outperformed the overall market. Oracle performed better than the market at 54 percent. PeopleSoft and Baan more than doubled their shares of the market growing at 90 percent and 92 percent, respectively. "The maturing market is forcing vendors to tackle new opportunities, such as aggressive down-market and vertical market strategies," said Clare Gillan, Vice President, Applications Research, IDC. "The Internet, which complements client/ server, also presents significant opportunity." Though nominal in 1996, IDC expects Web applications revenue to exceed $6 billion in 2001. Further, the Year 2000 issue is helping pull some additional client/server applications sales into this century with 47 percent of U.S. sites indicating that Y2K compliance is a consideration in planned applications replacement. Even among Y2K concerned sites, however, the majority of applications buyers continue to focus on key business drivers, such as improving enterprise decision making, customer service and time to market, to justify new applications purchases. IDC's research, Client/Server "Enterprise" Applications: Leading Vendors and Market Performance, 1996 (IDC #B13560), examines the client/server software market and provides brief performance analyses on each of the top 15 worldwide client/server enterprise applications vendors. In this study enterprise applications is defined as including accounting, human resources, manufacturing and distribution. The study also includes 1996 performance and Top 5 leading vendor revenue shares for each of the four enterprise application subsegments. To order a copy of Client/Server "Enterprise" Applications: Leading Vendors and Market Performance, 1996, please contact Cheryl Toffel at 800-343-4952. |