Worldwide licence revenues for packaged business applications will more than double by 2002, according to a new study from International Data Corporation (IDC.) The report found that the packaged business applications market, which generated revenues of $US50 billion in 1997, will reach in excess of $US100 billion by 2002.
IDC defines business applications as all packaged applications that automate business processes, including both front and back-office software. The definition also includes both stand-alone business applications, also called "best of breed", and suites, like those from SAP and Oracle.
The study found that the licence revenue from stand-alone business applications was almost three times higher than the revenue generated by suites, said Dennis Byron, a US-based research manager in IDC's applications and information access group.
Vendors of stand-alone applications also continue to partner effectively to the benefit of the users, since this cooperation among vendors yields better integration among business applications, he said.
Most users prefer "best of breed" applications, but they are willing to give up some of that functionality to gain product integration, he added. The partnering efforts yield results that bring users closer to getting the best of both worlds, Byron said.