Small and Medium-Sized Business Enterprise Applications Market to Grow to $80.3 Billion by 2012, IDC Finds

FRAMINGHAM, Mass.—(BUSINESS WIRE)—June 11, 2008— IDC forecasts that the small and medium-sized business (SMB) enterprise applications market will grow to $80.3 billion by the end of 2012, representing a 10.6% compound annual growth rate (CAGR) for the 20082012 period. Additionally, IDC finds that there will be increased spending by small and midsize businesses across the entire spectrum of enterprise application segments over the forecast period.

"With an onslaught of software vendors seeking to capture the growth opportunity in the increasingly lucrative SMB segments, a leadership position will be awarded to those that shape their operating model around increasing customer value," says Judy Hodges, research manager, Small and Medium Business Markets: Enterprise Applications. "In such a highly competitive marketplace, improving customer value is a market leader's imperative."

Additional key findings examined in this IDC report include:

  • The growing needs of SMBs to automate their business processes and meet regulatory compliance means that opportunities will abound in this market. Enterprise applications providers that lead their selling efforts with their solutions' capabilities for managing these challenges will profit most.
  • The SMB markets are extremely competitive and vendors looking to claim a significant share of the expanding opportunity will need to differentiate themselves through delivery of industry-specific functionality for micro-verticals and localized products to appeal to the global needs and support concerns of fast-growing SMBs.
  • Vendors will need to ensure more rapid delivery of their applications for time and budget-constrained SMBs by offering fixed scope in-house installations at predictable costs and on-demand subscription programs.
  • When searching for new packaged solutions to run their businesses, small firms will seek those that have the non-technical user in mind, require no training, and provide immediate value.

This IDC study, Worldwide Small and Medium-Sized Business Enterprise Applications 20082012 Forecast (IDC # 212353) provides a 20082012 forecast for the small and medium-sized business enterprise applications market. IDC defines small businesses as having 199 employees and medium-sized businesses as having 100999 employees. The enterprise applications market is inclusive of the following segments: enterprise resource planning (ERP, which includes human capital management, financials, and manufacturing), customer relationship management (CRM), supply chain management (SCM), collaboration, enterprise asset management (EAM), product and portfolio management (PPM), product life-cycle management (PLM), and architecture, engineering, and construction (AEC). The forecast presented in this study represents IDC's best estimates and projections for the five-year forecast period and is based on reported and observed trends and events in 2007 and their predicted effects on the SMB enterprise applications market.

To purchase this document or inquire about more detailed analyses of the small and medium-sized business enterprise applications markets including vendor revenue and shares, which will be published later in Q2 2008 contact your IDC Account Manager or email Email Contact.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting

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Judy Hodges, 508-988-6844
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Michael Shirer, 508-988-7892
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