The top three enterprise application software (EAS) vendors hold a dominating market share of 81.8% in the Arab Middle East and North Africa (MENA) region, according to the latest insights from International Data Corporation (IDC).
Referencing its ‘Arab Middle East and North Africa Enterprise Application Software Market 2014–2018 Forecast and 2013 Vendor Shares’ (IDC # CEMA21872) study, the research firm said that large organisations continue to account for the lion’s share of overall spending on EAS solutions, with net spend by small and medium-sized businesses (SMBs) rising significantly but remaining relatively small.
“Spending on EAS accelerated rapidly in Bahrain, Kuwait, Oman, Qatar, and the UAE in 2013,” says Dhiraj Daryani, program manager for software and enterprise solutions at IDC Middle East, Africa, and Turkey. “The next four years will present enormous opportunities for EAS vendors and their channel partners, particularly if they are successful in helping organisations and government departments modernise their business transaction systems. Vendors that bring vertical-focused, mobile-enabled, and cloud-ready solutions to the MENA market stand to gain market share.”
The region’s EAS market continues to be dominated by global giants SAP and Oracle. SAP remained the largest EAS vendor in MENA in 2013, with 39.1% share of the market, while Oracle placed second, with 34.4% share. Microsoft Dynamics held on to third spot with 8.4% share. The top ten vendors together captured 97.9% of total EAS spending in the MENA region during 2013, indicating that the dominant vendors in the MENA EAS market are competing aggressively and leaving little room for smaller vendors.
All MENA markets grew in 2013, with the exception of Egypt, where spending on EAS solutions contracted sharply when compared to 2012. Combined, the OGCC states of Bahrain, Kuwait, Oman, and Qatar were the region’s fastest growing market, followed by UAE.
Meanwhile, the rate of growth in Saudi Arabia was relatively slower. Saudi Arabia remained the largest market in the MENA region, followed by the UAE in second place. The OGCC countries ranked third, while North Africa placed fourth and Egypt took fifth spot. The Levant grouping was the smallest EAS market in the MENA region in 2013.
EAS license and maintenance (L&M) spending in the MENA region increased 7.3% year on year in 2013 to total $537.00 million. The biggest spenders were process manufacturing companies, which accounted for 16.0% of the market. The government sector was the second-largest vertical market, with 13.6% share, while combined finance ranked third, with 13.2% of the total market.
IDC’s ‘Arab Middle East and North Africa Enterprise Application Software Market 2014–2018 Forecast and 2013 Vendor Shares’ (IDC # CEMA21872) study provides an overview of the MENA market for integrated EAS suites. The EAS vendors tracked in this study include 3i Infotech, Applied Computer Services, Caciopee, Epicor, Exact Software, Focus Softnet, IFS, Infor, Involys, Microsoft, Oracle, QAD, Ramco, Sage, and SAP.
The study provides detailed qualitative and quantitative information, analysis, and forecasts that help illustrate the size and other defining characteristics of the market, leading players and their positioning, which industries are investing in EAS solutions, and how region-specific political and economic conditions affect the MENA market.
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