The top three enterprise application software (EAS) vendors hold a dominating market share of 81.8 percent in the Arab Middle East and North Africa (MENA) region, according to the latest insights from International Data Corporation (IDC).
The research firm said in its “Arab Middle East and North Africa Enterprise Application Software Market 2014-2018 Forecast and 2013 Vendor Shares” study that the large organizations 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.
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.
Saudi Arabia remained the largest market in the MENA region, though, the rate of growth was relatively slower, 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.
"Spending on EAS accelerated rapidly in Bahrain, Kuwait, Oman, Qatar, and the UAE in 2013," said 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 organizations and government departments modernize 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 percent share of the market, while Oracle placed second, with 34.4 percent share. Microsoft Dynamics held on to third spot with 8.4 percent share. The top ten vendors together captured 97.9 percent 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.
EAS license and maintenance (L&M) spending in the MENA region increased 7.3 percent year on year in 2013 to total $537.00 million. The biggest spenders were process manufacturing companies, which accounted for 16.0 percent of the market. The government sector was the second-largest vertical market, with 13.6 percent share, while combined finance ranked third, with 13.2 percent of the total market.