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Enterprise Software Market Growth Hindered by Strong Dollar, Transition to SaaS

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ARC Advisory Group (www.arcweb.com) monitors and analyzes the enterprise software market on a quarterly basis.  We track the revenues of fifteen prominent publicly traded enterprise software companies and translate financial results reported in foreign currencies to US dollars using an average exchange rate for the given reporting period. The suppliers’ reporting period for this analysis is the quarter ended December 2015, unless stated otherwise.

The suppliers included in this report recorded combined quarterly revenue of $24.3 billion, representing a 3.1 percent year-over-year decline from the same period in the prior year. The decline was mainly due to the weakening of the euro and other currencies against the US dollar. The euro depreciated relative to the dollar by over 12.3 percent from Q4 2014 to Q4 2015. Also hindering revenue comparisons is delayed revenue recognition due to many suppliers transitioning from upfront recognition of perpetual licenses to periodic recognition of SaaS revenues.

SOURCE: logisticsviewpoints.com