Enterprise software to be flat in 2009

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According to a Gartner report, worldwide enterprise software revenues will be flat in 2009. The research organization had previously pegged growth at 6.6 percent, but recently revised its projection. Speculation would have it though, that the big boys of the software business will weather the storm mainly due to sheer size, as well as ongoing maintenance fees and a diversity of product offerings. It's likely that they will, but there's little doubt that there are fewer enterprise deals going through as customers re-evaluate their cost structure and try to make due on what they already have in place.

Gartner's analysts report that while 2008 started out well enough, after the financial market's crisis hit, more enterprise users started putting projects on hold. The global enterprise software market will, according to the new projections, come in at $222.6 billion for 2009, up only 0.3 percent over last year. Certain segments, such as PC operating systems, office suites, and storage and digital content creation, will see negative growth rates.

Naturally, Gartner included a small caveat in its projection, saying that the relatively flat prediction could go negative by a couple of points if economic conditions worsen. They're hoping for a "slow economic recovery", which is a bit too much wishful thinking for my tastes--I'm not seeing any recovery this year or next. And when we finally do get to the recovery, it's going to be a strange one that will be accompanied by high inflation and rising interest rates due to the massive deficit. To make a long story short, the stimulus is going to help over the next year or two, and it will help some businesses stay afloat. But the piper will have to be paid in the long run, and that will cause problems in the industry once more.

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