VMware, the virtualization company owned by EMC, Oracle and Cisco turned out to be the fastest growing business software companies in India, according to Garnter’s assessment of the market for 2010.
At 25%, Oracle recorded the fastest revenue growth among the top five firms while IBM ended up as the biggest seller of software to Indian enterprises. Including consumer sales, however, Microsoft held the top spot.
The overall enterprise market in India grew to $2.5 billion or around 1% of the global market. India market expanded by 16.3% in 2010 — double the rate at which the rest of the world grew.
Software is only part of the overall IT market with most of the money being made in the IT services business, including maintenance, testing, development etc..
Oracle, which was originally a database software vendor, grew faster in India — at 25.2% — than globally (19.4%). The company is known for growing through a spate of acquisitions, now numbering in the hundreds.
Direct competitor, Germany-based SAP, grew at 19.8% while IBM, the biggest business software vendor in the country, grew just 15.3%.
It was a good year for Microsoft, particularly as its Windows 7 operating system boosted revenues by 25% to $706 million from India alone. Microsoft had a market share of 28% in the enterprise software market, but it also includes sales of its operating system to individual consumers. (See chart).
“Among the top 25 vendors in India, VMware led the group with more than 51 percent growth in 2010, followed by Cisco with more than 31 percent. The top 25 vendors accounted for nearly 94 percent share, or more than $2.3 billion, of the overall software market,” Gartner said.