11 predictions for enterprise software in 2013
We take a look into what the future holds for enterprise software vendors and users
By Chris Kanaracus | Published: 11:50, 19 December 2012
Software all around: " will be the year everyone wants to be a software company," said analyst Ray Wang, CEO of Constellation Research. "Large hardware vendors and systems integrators will take advantage of [the consumerisation of IT trend] and the cloud to consider delivering software-based solutions and IP to their market and competitors."
HP will make another big software buy: As most people have heard by now, Hewlett-Packard's $10.3 billion acquisition of infrastructure software vendor Autonomy hasn't gone terribly well, particularly in the public relations department.
Although HP shareholders may shudder at the thought of the company shelling out yet more billions, CEO Meg Whitman may push for another big acquisition as part of her turnaround plan.
Along with the search and data management software from Autonomy, HP also has a powerful database in the form of Vertica. Missing components in its lineup seem to be middleware and business applications, so if a deal does occur, watch those spaces.
Economic turmoil on tap: There's likely to be an economic recession in the US in 2013, resulting in a significant pullback in IT spending, particularly on new purchases and investments, according to analyst Frank Scavo, president of the IT research firm Computer Economics.
This will "impact the traditional enterprise software vendors in a greater way than they realise," Scavo said. "Upgrade projects for traditional on-premises enterprise systems will be cancelled or delayed. The third-party maintenance business will prosper as customers look for ways to cut support costs. This will put pressure on traditional vendors to cut maintenance rates, which they have been resisting. This in turn will pressure their operating margins."
While cloud-based vendors will suffer less, they'll still see some deals take longer to close, Scavo said.
Don't believe anything you've just read: "Very few people see really new trends before they start," Scavo said."I agree with Bill Gates, who said, 'We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next 10.'"