14 DAY TRIAL // The revenue reports for the second quarter of fiscal year 2009, ending in December 2008, were the first indication that Microsoft was starting to feel the impact of the global financial crisis. Still, despite the economic downturn settling in, the Redmond company managed a growth almost double compared to the evolution of the software market, according to Gartner. The research firm revealed that Microsoft's revenue jumped by 7.1% in 2008, while the software market grew only 4.2% over 2007. The consistent growth places Microsoft among the top three companies in accordance with software revenue the past year, along with IBM and HP.
“In 2007, the annual growth rate was 11.2 per cent indicating that the worldwide economic crunch has clearly slowed growth in this market,” explained Laurie Wurster, research director at Gartner. “However, single-digit growth in a challenging economic climate is good, especially in this relatively mature market overall, with some hot spots remaining within it. Investments are temporarily suspended and deferred but not canceled. We expect the growth rate to increase from the third quarter of 2009.”
Microsoft accounted for no less than 14.6% of the software market in 2008, Gartner estimated, giving the company the number two spot in its ranking, runner up to IBM, which grew 7.9%, owning a market share of 27.1%. The bronze winner is HP with a revenue boost of 17.6% and a share of the software market of 11.1%.
“For the remainder of 2009, vendors will pull out of some geographies and enter new ones and further high growth should come from Asia/Pacific markets as more offshoring is expected for cost containment measures,” added Wurster. “In addition, alternate software delivery models will pick up and vendors will optimise on direct vs. channel sales. However, the bulk of business for advanced developments and advanced usage of AD tools will come from North America and some mature economies in Europe, the Middle East and Africa.”