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Home arrow News arrow Culture arrow Maintenance growth beats license revenue clip in SCM
Maintenance growth beats license revenue clip in SCM Bookmark and Share
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Friday, 18 June 2010
Worldwide supply chain management (SCM) software revenue totaled $6.2 billion in 2009, a 0.7 percent decline from 2008 revenue, according to Gartner Inc. New license revenue was down 7.4 percent in 2009, while recurring revenue associated with subscriptions and maintenance were the "life vest" of the market, growing 10.8 percent and 0.2 percent, respectively.  

The economic climate of the past few years and the maturity and saturation of implemented business applications has proven difficult. This stressed environment has forced many vendors to increase maintenance rates and explore various channel, delivery and pricing options," said Chad Eschinger in Mumbai on Thursday, research director at Gartner. "Competition between enterprise suite and specialist, best-of-breed vendors has heightened. Although suite vendors are typically well-positioned within organizations to stall emerging-application purchases, there are significant opportunities for specialized vendors that offer differentiating domain and vertical solutions that are 'blind spots' in a suite provider's offering."

The specialized segment of SCM software revenue totaled $3.5 billion in 2009, a 1.6 percent increase from 2008. The suites segment of SCM software revenue totaled $2.7 billion in 2009, a 3.7 percent decline from 2008 revenue.
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