How Microsoft, Salesforce.com, Oracle and SAP drive the application-related services market

The market for business application-related consulting and system integration forms a large part of the overall IT service market with a compound rate of around 5 to 6 percent for 2014/18, which is even slightly higher for services related to business applications from Microsoft, Oracle, Salesforce.com and SAP.

PAC analyzes the services business for these four major application platforms, which includes market volume and growth as well as the growth drivers. For this, we cover the portfolio of business applications of these vendors, including their on-premise as well as their cloud offerings.

Topics drive services business
From a global topic-related perspective, we analyzed the attractiveness of a number of topics including cloud, big data, financials, CRM, SRM, industry solutions, analytics, mobility and technology platforms for the four application platforms. Here are a few insights:

  •        For Microsoft, the mobility market is an important growth driver for services.
  •        We have found that attractive markets for Oracle-related services include industry solutions, analytics and its technology platform.
  •        Salesforce.com offers attractive segments for service providers in the CRM, industry solutions, analytics and mobility fields.
  •        PAC has identified big data, industry solutions, analytics, mobility and technology platforms as important topics for SAP partners.

Market growth differs per region and per country
Our market figures allow for a comparison of regions (EMEA, Asia-Pacific and Americas) as well as 30 individual countries comprising mature markets like the US, the UK, Germany and France and emerging markets including India and China. And the differences are substantial. For China we forecast a double-digit compound annual growth rate (CAGR) until 2018 for all the four platforms. While in a much more mature market like Germany, the services business for SAP, Microsoft and Oracle applications is in the single-digit range, the services business for salesforce.com is growing by more than 40 percent at the moment.

Volume versus growth
On a global scale, the salesforce.com-related services market is the smallest by volume but the fastest in terms of growth. The SAP-related services market is the largest among these four platforms. Although the services business for these four application platforms is attractive, service providers need superior growth strategies if they are to outperform the market.

Heat map to define strategy for service providers
Of course, global trends such as the cloud are relevant growth drivers or services in all four platforms. But due to the different portfolios of the vendors plus the different market conditions in the various countries, it is mandatory for service providers to identify which market segments are the most promising ones.

In PAC’s view, service providers should carefully identify growth markets via a heat map approach in order to consider topics, regions/countries and industries. They need to improve the way in which they are perceived in their markets and must optimize portfolios so that they are understood. Awareness has to be increased so that companies are recognized. Sales have to be enabled and leveraged by an activated ecosystem to grow, making use of current market opportunities.

Research package from PAC
The above-mentioned analysis is derived from a research content called “Key Business Application Software Platforms Driving Services” that comprises reports (https://www.sitsi.com/key-business-application-software-platforms-driving-services-part-1-market-insight-worldwide and https://www.sitsi.com/key-business-application-software-platforms-driving-services-part-2-market-insight-worldwide) and market figures (https://www.sitsi.com/business-applications-related-consulting-systems-integration-csi-segments-market-figures-worldwide-0)