Calcutta, April 9: Software companies earned $4.7 billion in revenues last year against $4.33 billion in 2012, an increase of 10 per cent, with Microsoft leading the pack.
According to research firm Gartner, the higher revenue was the result of the adoption of cloud or subscription-based services by companies.
“Organisations are doing this in order to maintain competitiveness, while still taking advantage of cloud or subscription-based pricing where it makes sense to grow and advance the business,” Bhavish Sood, research director at Gartner, said.
Software vendor Microsoft’s revenues grew to $957.3 million in 2013 from $865.9 million a year ago. Oracle moved up to the second position with earnings growing to $504.6 million from $415.2 million and a market share of 7.3 per cent. IBM came in third at $446.6 million in 2013 against $417.9 million a year ago.
They were followed by SAP, VMware, CA Technologies, Adobe, SAS and HP.
The Indian software market witnessed the highest growth among the Brics (Brazil, Russia, India, China and South Africa) countries. Brazil grew at 7.8 per cent, while China registered a growth of 7 per cent. Russia grew at 8.9 per cent and South Africa at 6.3 per cent.
Small and medium businesses continue to play a crucial role in changing the consumption patterns of technology in the country besides large enterprises.
Sood said India was growing much faster than other emerging countries because of the focus on exports over the last 10 years.
“However, recent advances in IT communications infrastructure in the country has opened up new avenues for local consumption of IT software and associated services. Although there is an economic slowdown, Indian enterprises are still judiciously investing in technology that can be tied to the business objectives and impact their bottomline,” he said.