With all the talk about Microsoft’s new CEO and the changes he is likely to bring, it is sometimes forgotten that the company is the biggest software vendor in the world. According to new figures from Gartner, Microsoft retained that crown in 2013, while Oracle muscled past IBM to claim the number two spot. 

That is one of the significant points from the Market Share: All Software Markets, Worldwide, 2013 report, which also notes that Salesforce has pushed itself into 10th position from 12th last year. This is the first time that a cloud or SaaS vendor has managed to make it into the top 10 list.

Global Software Spending

The figures also confirm what many companies have been saying about increasing IT budgets over the past 12 months. This is reflected in a general rebound for the software market worldwide, which went from $388 billion in 2012 to $407.3 billion in 2013, representing growth of 4.8 percent. Growth here was principally in the developed countries, offsetting the generally poor performance in the emerging markets.

In the coming year,  this trend is likely to continue with worldwide IT  spending, including software, on pace to total $3.8 trillion in 2014 -- a 3.2 percent increase from 2013 .

Gartner also points to the fact that the software market is in transition, and that there could well be further changes in the coming months. Organizations within the industry are looking to invest in technologies that support existing IT infrastructure while simultaneously looking at new cloud or subscription based models to help drive growth. 

It seems that the Internet of Things (IoT), and the way organizations respond to the challenges posed by its continued development, will also play a role in the transformation of the software market. The change is further being compounded by the rise of cloud computing:  

The software market has been changing shape over the past five years, and cloud is driving the bulk of this change as software vendors acquire and provide applications and infrastructure technology to support the cloud and the Internet of Things (IoT) movement. A clear indicator of this is that for the first time we have a pure cloud vendor in the top 10,” Joanne Correia, Gartner researcher said.

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