Growth of Worldwide Software Market to Spiral Downward in 2001 Due to September 11 Tragedy and Economic Conditions

FRAMINGHAM, MA – NOVEMBER 26, 2001 – Due to the events of September 11 and the current economic recession, the steady growth of the worldwide packaged software market is now expected to spiral downward to 6.8% growth in 2001, 5.2% less than IDC’s original forecast of 12%. A growth recovery to 11.8% in 2002 is expected, still less than the original 15% originally forecast, according to IDC.

 

IDC’s three primary software market segments – applications, application development and deployment, and system infrastructure software, will all suffer reduced growth in 2001 but will start to rebound in 2002:

· The application development and deployment market will experience the greatest reduction in growth in 2001, with growth of 4.7%, down 10.5% from IDC’s original 2001 forecast of 15.2% growth expectancy.

· The applications market will also grow less than expected, from 12.7% originally projected in 2001 to 9.4%, and a decrease from a forecast of 14.6% to 9.1% in 2002.

· System infrastructure software market will grow only 4.6% in 2001 instead of the originally projected 8.4% but will grow to 11.8% in 2002, just 1.2% lower than previously forecast.

"The globally weak economy and the reduced software growth rate will cause a change in the way software is being purchased,"said Tony Picardi, senior vice president of Global Software at IDC. "This will result in a changed industry structure involving a rapid increase in the use of security and a continual increase of infrastructure, tools, and applications used to advance personal connectivity of all kinds."

IDC’s annual report, Worldwide Software Market Forecast Summary, 2001-2005 (IDC #25569) provides a comprehensive analysis of the worldwide packaged software market, along with a list of the top vendors segmented by geographic region and operating environment. A revised synopsis of the worldwide packaged software market after the events of September 11 and revised forecast figures segmented by geographic region and operating environment for 2001-2005 may be found in IDC’s bulletin, Global Software in a Changed World (IDC #25894).

To purchase this document, call IDC's volume sales hotline at 508-988-7988 or email ctoffel@idc.com.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

 

# # #

All product and company names may be trademarks or registered trademarks of their respective holders.