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May 2018
Enterprise Software
Sectorwatch
Enterprise software has driven growth for companies of all kinds in the past couple of years, and is expected to increase in the years ahead. With digital transformation on the rise for 2018, companies worldwide are working to transform all aspect of the organizations to be more digital as they compete with more agile startups. According to IDC, enterprises that are aggressively pursuing digital transformation, will have transferred more than half IT infrastructure in data center and edge locations to a software-defined model by the end of 2019.
Industry Trends:
- Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
- Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants
