Software Spending Expected To start a Rebound in 2010

The year 2009 will go down in IT history as a year of drastic budget cuts. But 2010 should see a software spending resurrection as companies in many countries increase their budgets and prepare for growth.

So says a Gartner survey that reveals organizations plan to increase their software budgets an average of 1.53 percent in 2010. Although North America will continue to see a slight spending decline, there is a clear growth opportunity in developing nations. Specifically, software budgets will rise 2.54 percent in Latin America and 4.34 percent in the Asia/Pacific.

“Software vendors should continue to build, fund and invest in software sales and marketing programs, even during tight market conditions to maintain customers and expand revenue opportunities,” said Joanne Correia, managing vice president at Gartner. “A market downturn is a disrupter that invents great marketing and sales opportunities for organizations prepared to take advantage of the right products, marketing programs, and funding.”

Solid Business Advice

With that growth in mind, Gartner is making several recommendations for software vendors heading into 2010. For starters, the research firm said, vendors need to differentiate their software products with key integration technologies and offer vertical market solutions to reach a diversified customer base.

Gartner said software vendors additionally need to work on strengthening relationships and building trust with IT departments and ultimately deliver results that truly enhance the client’s business. Finally, the firm said, software vendors need to align go-to-market functions with the maturity of the demand. Gartner stressed that tactics in an emerging or high-growth software market are not appropriate in consolidating or maturing markets.

“Vendors need to use a consultative selling approach to understand and thereupon address the most critical needs of IT and the business of their current and prospective clients,” Correia said. “Software vendors plus need to develop a stronger presence…

Original post by dhiram

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