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Worldwide Enterprise Applications Market Shares, 2020: Next-Generation Applications Shaping the Market

Worldwide Enterprise Applications Market Shares, 2020: Next-Generation Applications Shaping the Market

  • September 2021
  • 29 pages
  • ID: 6150348
  • Format: PDF
  • IDC


Table of Contents

This IDC study reviews shares for the enterprise applications market, which continued to grow in 2020, despite the pandemic. As organizations globally recognize they must become digital quickly, their transformation strategies are helping accelerate the pace of change in the enterprise applications market, largely thanks to the 3rd Platform and the innovation accelerators of IoT and cognitive systems including machine learning. Portfolio rationalization, modernization, and thoughtful consideration into multiyear plans are leading organizations to a multitude of investment strategies within the enterprise applications market. Among these investments are:The improvements of the customer-facing applications to protect and increase revenue opportunitiesThe investment in modular systems to enhance the operations, finance, manufacturing, procurement, supply chain, facilities, distribution, HR, and other functionsThe addition, extension, and completion of workflows with task applications (TaskApps) to increase automationThe understanding of the current state to the future enterprise state, from on-premises and hybrid models to cloud-native and integrated suite offerings, to enhance the entire digital-first organizationIt is quite apparent that organizations continued to invest in enterprise applications in 2020 and will continue to invest well into 2021 and beyond. This picture varies based on the type of the software. In IDC's 2021 SaaSPath Survey, we reviewed 17 application types across a multitude of industries and organization sizes (small, medium sized, and large). Across all application types, organizations plan on increasing their enterprise application investments, from 33% to 64%. For small and medium-sized businesses, this number went from 27% to 59%, while large enterprise spending toward enterprise applications is significantly higher, from 42% to 72%. According to Mickey North Rizza, program VP, Enterprise Applications and Digital Commerce at IDC, "The digital-first world requires organizations everywhere to rethink their strategy of selling, operating, and fulfilling product and service requirements. Digital savviness means not only new product and service offerings but also targeted and planned investments into the technology underpinning the business. Organizations must meet their clients where the needs arise, which requires the right application technology to support their digital transformation initiatives. From customers to employees, organizations are dependent upon modern, cloud-based, and intelligent enterprise applications as their trusted foundational resource supporting their efforts."

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