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August 2018
Enterprise Software
Sectorwatch
Digital business transformation has been disrupting the enterprise software market and is a key driving force that will reshape the competitive landscape. As a result of the trend towards digital business transformation, spending in this sector is also expected to reach $391b in 2018, an 11% increase over last year and the highest growth market in IT spending in 2018.
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 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
