Gartner Research

Forecast Analysis: Enterprise Application Software, Worldwide, 4Q16 Update

Published: 24 January 2017

ID: G00303206

Analyst(s): Nigel Montgomery , Hai Swinehart , John Christopher Rizzuto


Our enterprise application software forecast remains unchanged for 4Q16; however, the underlying market continues to exhibit its most dramatic shift in 30 years. The irreversible shift to SaaS will continue. This document discusses key highlights and associated assumptions for the 4Q16 forecast.

Table Of Contents
  • Overview
  • Companion Documents

Forecast Data

Market Impact

  • Vendors Are Shifting Focus From Functionality to Consumable Services
  • Maintenance, Rather Than New License, Spend Is Now the Largest Contributor to Traditional (On-Premises, Perpetual) Revenue
  • By 2020, SaaS Will Be 35% of Total Application Software Spending


  • Price
  • License Revenue
  • SaaS/Subscription

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