Software is the most profitable industry in the economy. But sometimes we don’t have a clear picture of just HOW profitable. Although software companies are working hard to stand out from their competitors, and adjust to latest technologies, the market is still experiencing growth.
The software companies are in the midst of significant change. Cloud software-as-a service (Saas), mobile devices, and consumerization of IT, are changing how software vendors develop, market, sell, distribute and support their products.
According to the latest report from research firm Gartner, the Global software revenue generated by these companies totalled to $403.3 billion in 2013. This shows that the revenue has increased by 4.8% from 2012 revenue of $388.5 billion. Gartner’s March 31, 2014 report on the top 10 profitable software companies only counts revenue generated through software sales during the 2012-2013 year. Companies like Facebook and Google are excluded from this list because they sell ads, not software.
1. Bill Gates, the most powerful and largest software company in the world, has ranked World’s NO.1 software maker by a long shot, earning $65.7billion in 2013.
2. Oracle Corp, takes over the second place for the first time with $29.6 billion.
3. IBM, one of the leading players in tech companies in U.S today fell to the third spot with $29.1 billion.
4. SAP ($18.5 billion)
5. Symantec ($6.4 billion)
6. EMC ($5.6 billion)
7. HP ($4.9 billion)
8. VM ware ($4.8 billion)
9. CA Technologies ($4.2 billion)
10. Salesforce.com ($3.8 billion)
“There is a shift in company rankings from 2013 at the top of the worldwide software market”,said Chad Eschinger, research vice president at Gartner.
This is the first time in Gartner’s global software market share research that Oracle has moved to the second place by capturing 7.3 percent of the global market. Global trends around big data and analytics with business investment in database and clou-based apps helped to drive Oracle’s top-line growth.
Salsforce.com, with more than US $3.8 billion in revenues in 2013, achieved the tenth place of the worldwide enterprise software market.
“Investors continue to focus on companies that are early and aggressive in capturing both market and mind-share while evaluating vendors”
said John Rizzuto, research VP at Gartner.