Enterprise Software

June 2017

Sectorwatch

The enterprise software market, such as BI, CRM, ERP and marketing automation, has greatly evolved over the last six years according to CIO’s Jennifer Schiff. From moving to the cloud (or offering hybrid solutions), to incorporating social media, to going mobile, enterprise software vendors have continually strived to keep pace with current trends and technological developments, adding new features and functionality to appeal to the modern, mobile, global enterprise. 

Industry Trends:

  • Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
  • Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
  • Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation