Software sales to rise by 10% as firms embrace analytics
A stampede to adopt cloud and software-as-a-service (SaaS) platforms as well as a greater focus on analytics is likely to trigger double-digital growth in the worldwide software market in 2016 and 2017, according to a new report.
Forrester's Global Tech Market Outlook For 2016 To 2017 report predicts that spending will rise to $640bn (£439bn) worldwide in 2017, an increase of nearly 10%.
As well as cloud software and services, Forrester reckons that analytics will play a pivotal role, with business intelligence products and cognitive technologies contributing to software sales.
Forrester principal analyst Andrew Bartels explained: “If software is where all the action is, hardware is the backwater of old technology.
“Computer equipment will show some signs of life, as tablets and Windows 10 PCs attract increases in spending. But sluggish demand for servers and storage devices will keep 2016 growth at 2.4% in US dollars (3.2% in local currency terms) and a bit better in 2017.”
In terms of the sales breakdown, Forrester expects applications to make up the bulk of spending at $314bn (£215bn), with custom software and mobile apps developed by contractors accounting for $87.1bn (£59.7bn) and $17.5bn (£12bn) respectively.
to be GDPR compliant.
Register with us for all the news