IDC Forecasts North American Packaged Software Revenues Will Approach $35 Billion in the Finance Industry Alone

Apr 18, 2001, 01:00 ET from IDC

    FRAMINGHAM, Mass., April 18 /PRNewswire/ -- The North American finance
 industry will open up the vaults and spend a whopping $33.6 billion on
 packaged software in 2004 - more than twice as much as the $16 billion the
 industry spent in 1999. This information comes from a new bulletin series from
 IDC.
     "All segments of the packaged software market will grow in the finance
 industry, but tools will increase the fastest," said Karen O'Brien, research
 manager for IDC's Vertical Industry Practices research on U.S. Banking and
 Finance.
     According to IDC, the tools segment will earn a compound annual growth
 rate (CAGR) of 22% from 1999-2004. System infrastructure's CAGR will be 17%
 during the same time frame, and applications, 10%.
     "The increase in the amount of data financial firms use will drive the
 tools segment's growth. Customer relationship management [CRM] initiatives
 will give an added boost to data warehousing and other information access and
 data management tools. Software tools that facilitate linking operational and
 analytical data for CRM purposes will be particularly important," O'Brien
 said.
     IDC expects CRM to lead spending growth in the applications segment. In
 fact, the finance industry will triple its spending on CRM applications from
 $547 million in 1999 to over $1.8 billion in 2004. Banks will lead the CRM
 charge, increasing their spending from $262 million to almost $890 million
 during the same time frame. "Banks are shifting from a product-centric
 strategy to a customer-centered one," O'Brien said. "CRM applications that
 have personalization and customization abilities, serve multichannels, and
 have the ability to link with legacy databases will be in high demand."
     IDC believes middleware and serverware will be the fastest-growing area of
 infrastructure software with spending increasing at a 25% annual pace between
 1999 and 2004. "Growth in middleware and serverware spending will be driven by
 products that translate and link existing legacy systems with data and new
 Web-based applications," O'Brien said.
     Of the three sectors of the finance industry -- banking depository,
 insurance, and other financial services -- IDC believes banks will account for
 the majority of revenues in the overall packaged software market.
     IDC examines the North American packaged software opportunity in the
 finance industry in great detail in three new bulletins:
 
     * North American Applications Packaged Software: Finance Vertical Markets
       Forecast and Analysis, 2000-2004 (IDC #B24057) divides the market into
       the following segments: CRM, enterprise resource management, vertical
       industry specific, and office and collaborative applications.
 
     * North American Packaged Software: Tools, Finance Vertical Markets
       Forecast and Analysis, 2000-2004 (IDC #B24171) divides the market into
       the following segments: information access, information and data
       management, application development and constructions tools, and
       application life-cycle management tools.
 
     * North American Packaged Software: Systems Infrastructure Finance
       Vertical Markets Forecast and Analysis, 2000-2004  (IDC #B24117) divides
       the market into the following segments: middleware and serverware,
       security, systems and network management, and systems-level and
       networking packaged software.
 
     All three bulletins forecast 2000 and 2004 revenues for all segments by
 finance sector. To purchase any of these bulletins, contact Cheryl Toffel at
 1-800-343-4952, extension 4389, or at ctoffel@idc.com.
 
     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
 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.
 
 

SOURCE IDC
    FRAMINGHAM, Mass., April 18 /PRNewswire/ -- The North American finance
 industry will open up the vaults and spend a whopping $33.6 billion on
 packaged software in 2004 - more than twice as much as the $16 billion the
 industry spent in 1999. This information comes from a new bulletin series from
 IDC.
     "All segments of the packaged software market will grow in the finance
 industry, but tools will increase the fastest," said Karen O'Brien, research
 manager for IDC's Vertical Industry Practices research on U.S. Banking and
 Finance.
     According to IDC, the tools segment will earn a compound annual growth
 rate (CAGR) of 22% from 1999-2004. System infrastructure's CAGR will be 17%
 during the same time frame, and applications, 10%.
     "The increase in the amount of data financial firms use will drive the
 tools segment's growth. Customer relationship management [CRM] initiatives
 will give an added boost to data warehousing and other information access and
 data management tools. Software tools that facilitate linking operational and
 analytical data for CRM purposes will be particularly important," O'Brien
 said.
     IDC expects CRM to lead spending growth in the applications segment. In
 fact, the finance industry will triple its spending on CRM applications from
 $547 million in 1999 to over $1.8 billion in 2004. Banks will lead the CRM
 charge, increasing their spending from $262 million to almost $890 million
 during the same time frame. "Banks are shifting from a product-centric
 strategy to a customer-centered one," O'Brien said. "CRM applications that
 have personalization and customization abilities, serve multichannels, and
 have the ability to link with legacy databases will be in high demand."
     IDC believes middleware and serverware will be the fastest-growing area of
 infrastructure software with spending increasing at a 25% annual pace between
 1999 and 2004. "Growth in middleware and serverware spending will be driven by
 products that translate and link existing legacy systems with data and new
 Web-based applications," O'Brien said.
     Of the three sectors of the finance industry -- banking depository,
 insurance, and other financial services -- IDC believes banks will account for
 the majority of revenues in the overall packaged software market.
     IDC examines the North American packaged software opportunity in the
 finance industry in great detail in three new bulletins:
 
     * North American Applications Packaged Software: Finance Vertical Markets
       Forecast and Analysis, 2000-2004 (IDC #B24057) divides the market into
       the following segments: CRM, enterprise resource management, vertical
       industry specific, and office and collaborative applications.
 
     * North American Packaged Software: Tools, Finance Vertical Markets
       Forecast and Analysis, 2000-2004 (IDC #B24171) divides the market into
       the following segments: information access, information and data
       management, application development and constructions tools, and
       application life-cycle management tools.
 
     * North American Packaged Software: Systems Infrastructure Finance
       Vertical Markets Forecast and Analysis, 2000-2004  (IDC #B24117) divides
       the market into the following segments: middleware and serverware,
       security, systems and network management, and systems-level and
       networking packaged software.
 
     All three bulletins forecast 2000 and 2004 revenues for all segments by
 finance sector. To purchase any of these bulletins, contact Cheryl Toffel at
 1-800-343-4952, extension 4389, or at ctoffel@idc.com.
 
     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
 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.
 
 SOURCE  IDC

RELATED LINKS

http://www.idcresearch.com