Microsoft emerges as top software vendor in India

New Delhi: India software revenue totalled $4 billion in 2014, an 8.3% increase from 2013 revenue of $3.7 billion, said IT advisory firm Gartner.

The enterprise software marketplace is dynamic and ever-changing. Its growth and structure are being shaped by the factors and forces of decentralised purchasing, consumerisation and mobility, influence of emerging markets, cloud-based implementations, and new consumption models, said Bhavish Sood, research director at Gartner.

Improvement in global economic conditions has somewhat relaxed the strain on the Indian economy, thereby boosting corporate sentiments. Along with a new stable government at the center, this has helped in alleviating concerns about economic growth — to a certain extent — with early signs of spending in growth initiatives beginning to emerge, he added.

Several leading trends that are common across the India software market include software as a service (SaaS) adoption and development, open-source software (OSS) adoption and its broader market implications and changing buying behaviors and purchasing styles associated with the digital business.

Microsoft maintained the No. 1 position in software revenue in India, accounting for 25% of overall sales in 2014. The top three vendors in the market (Microsoft, Oracle and IBM), represent 50% of total software sales in India.

Among the BRICS (Brazil, Russia, India, China and South Africa), the India software market experienced the highest growth rate. Apart from mega vendors there’s a thriving ecosystem of product startups that are getting incubated in India, and as such, they are helping drive software adoption through their innovative, small footprint low-cost products.


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