Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.

Latin America 2008 Enterprise Applications Market OverviewSoftware Market Trends

Latin America 2008 Enterprise Applications Market OverviewSoftware Market Trends

IDC Latin America

Presentation prepared for:

© 2009 IDC 2

AgendaAgenda

Market Overview 2009-2010

Market Analysis

Follow The Money

Conclusions For The Studies

Competitor’s Analysis

© 2009 IDC 3

AgendaAgenda

Market Overview 2009-2010

Market Analysis

Follow The Money

Conclusions For The Studies

Competitor’s Analysis

© 2009 IDC 4

AgendaAgenda

Market Overview 2009-2010

Market Analysis

Follow The Money

Conclusions For The Studies

Competitor’s Analysis

© 2009 IDC 5

Addressable Markets: ERM still remains as the biggest marketAddressable Markets: ERM still remains as the biggest market

CRM Applications20.21% growth

Enterprise Resource Management Applications

15.99% growthOperations & Manufacturing Applications

12.21% growth

Supply Chain Management Applications

10.69% growth

0%

5%

10%

15%

20%

25%

0% 10% 20% 30% 40% 50% 60% 70%

Share as a % of Applications Market for 2008

SW R

even

ue (%

of G

row

th) Y

ear

2007

-200

8

Applications Addressable Market Latin America, 2008

Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.

SCMSCM

“The continued need to automate supply- and demand-side business processes”

© 2009 IDC 7

SCM ForecastSCM Forecast

$215$237 $245 $259

$281$309

$344

11%

3%

8%

11%

6%

10%

$0

$80

$160

$240

$320

$400

2007 2008 2009 2010 2011 2012 2013

US$ Million

0%

5%

10%

15%

20%Growth (%)

Market Size (US$ M) Growth (%)

AssumptionsThe market for supply chain solutions has

entered an era in which ERP vendors and smaller niche vendors rule. Today, customers want to integrate the operation of supply chains with everything else they do, which weakens the case for larger standalone implementations.

The economic uncertainly will depress spending on SCM applications. Companies would try to manage their operations with the same resources they have right now.

IDC expects that the current pressure on most companies to reduce costs will lead to new initiatives to outsource tasks and processes and thereby increase supply chain complexity. This increased complexity will bolster the case of investments in packaged SCM applications.

Latin America SCM Applications Market Forecast (US$M) & Annual Growth 2007 – 2013

Source: IDC Latin America Semiannual SCM Applications Tracker 2008

© 2009 IDC 8

SCM applications are also perceived as a way to reduce costs SCM applications are also perceived as a way to reduce costs

IT Solutions Current Adoption in LASCM Market

Don't have it48%

Packaged Software licenses/ upgrades

15%

100% Custom External Develop

8%

Outsourcing1%

Internal Development

28%

Source: IDC LA IT Investment Trends 2009 (N:647)

© 2009 IDC 9

SCM Applications Market ShareSCM Applications Market Share

40.5% 41.4%

20.9% 19.7%

8.1% 9.0%4.3% 3.8%2.84% 3.35%2.89% 3.05%

20.5% 19.7%

2007 2008

SAP AG TOTVS Oracle Corp.Infor Neogrid SAS InstituteOthers

Latin America Supply Chain Management Applications Market Share by Vendor(% of Revenue) 2007 – 2008

Competitive HighlightsSAP focused on improving SCM

integration with demand planning, enhancing also the support of supply chain communications and collaboration, and compliance with regulatory requirements.

Oracle announced an upcoming product, Oracle Rapid Planning, one of the newest components of its Value Chain Planning offerings. The focus is to provide an holistic approach from demand planning to advanced SCM.

Source: IDC Latin America Semiannual SCM Applications Tracker 2008

© 2009 IDC 10

SCM Applications Market by Segment and Vertical IndustrySCM Applications Market by Segment and Vertical Industry

13.2%

-4.7%-2.6%

20.7%

11.8%

$0

$20

$40

$60

$80

$100

$120

$140

Large Business(500+)

MediumBusiness (100-

499)

Small Business(10-99)

Government Education

US$ Million

-10%

-5%

0%

5%

10%

15%

20%

25%Growth %2007 2008 Growth 2008-2007

Latin America Supply Chain Management Applications Market Share by Company Size & Vertical Industry (% of Revenue) 2007 – 2008

3.9%

24.0%16.6% 20.7%

12.6%

-2.7%

1.9%

14.5%

59.4%

$0

$30

$60

$90

$120

Man

ufac

turin

g

Comm

erce

Servic

es

Financ

e

Oil/Gas

/Mini

ng

Teleco

mm

unica

tions

Gover

nmen

t

Utilitie

s

Educa

tion

US$ Million

-10%0%10%20%30%40%50%60%70%

Growth %2007 2008 Growth 2008-2007

Both, large and medium sized companies think that closer collaboration with suppliers is seen as an important route to improving supply chain responsiveness and decision-making times.

Source: IDC Latin America Semiannual SCM Applications Tracker 2008

Manufacturing and Commerce are expected to keep the SCM market up

© 2009 IDC 1111

Essential Guidance – SCM MarketEssential Guidance – SCM Market

Highlight Recommendation

Many companies are pointing out the need to reduce long-term projects.

Offer accelerated implementation tools, and greater/better usage and adoption of installed solutions, while recruiting specialist partners with local and industry-specific knowledge to ensure successful implementations.

SCM applications are also perceived as a way to reduce costs related to inventory levels, personnel, and waste.

Strengthen the cost-saving element of Oracle's value proposition. The existing ROI framework should be extended to show concrete savings.

Certain supply chain issues remain, despite the current economic crisis.

Highlight the importance of enhancements in the supply chain processes. These are necessary measures to gain competitiveness to stand out.

© 2009 IDC 12

Contact InformationContact Information

Please send your comments to:

Mariana Zamoszczyk (Applications)mzamoszczyk@idc.com

Alejandro Florean (SW Director)aflorean@idc.com