Major Consolidation Will Drive the Enterprise Applications Market in One of Two Directions, IDC Says

Nov 09, 2001, 00:00 ET from IDC

    FRAMINGHAM, Mass., Nov. 9 /PRNewswire/ -- According to IDC, major
 consolidation within the enterprise applications (EA) market through 2005 is
 expected as overarching IT market trends from the 1990s begin to influence the
 enterprise applications space.
     "In this new landscape, enterprise applications vendors need different
 corporate strategies, product development, and marketing tactics to prepare to
 be either an acquirer or acquiree," said Dennis Byron, vice president of IDC's
 Enterprise Applications service. "Vendors will need to make decisions soon or
 be left behind."
     This consolidation will drive the market in one of two directions:
     * A complete decomposition into enterprise application components that
 enables true application functionality to be deployed as a service
     * A back-to-the-future scenario in terms of 'stacks' of applications
 functionality and underlying technology that users do not have to integrate
     According to IDC, reactions of leading "technology band" suppliers such as
 Oracle and Microsoft, and new enterprise applications suppliers such as EDS
 and CSC, will influence which scenario the enterprise applications market will
 follow in 2005 and beyond.
     Although the trend of single-vendor responsibility in the 1970s shifted to
 application and technology bands in the 1990s, IDC research indicates there is
 a user preference for 'stacks' of application functionality with single-vendor
     IDC's recently published report Back to the Future: Trends in the Overall
 IT Market Portend Major Change for the Packaged Enterprise Applications Market
 (IDC #25822) provides an in-depth review of the anticipated consolidation for
 the enterprise applications market, a historical view of the enterprise
 applications market, and an overview of the fast growing enterprise
 applications competitive markets.
     To order this report, please contact Cheryl Toffel at 508-935-4389 or
     About IDC
     IDC is the foremost global market intelligence and advisory firm helping
 clients gain insight into technology and ebusiness trends to develop sound
 business strategies. Using a combination of rigorous primary research, in-
 depth analysis, and client interaction, IDC forecasts worldwide markets and
 trends to deliver dependable service and client advice. More than 700 analysts
 in 43 countries provide global research with local content. IDC's customers
 comprise the world's leading IT suppliers, IT organizations, ebusiness
 companies, and the financial community. Additional information can be found at
     IDC is a division of IDG, the world's leading IT media, research and
 exposition company.
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 of their respective holders.
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