In 2015, the global Professional Services applications market grew 5% to approach nearly $16.0 billion in license, maintenance and subscription revenues.
Last year Microsoft led the pack with 6% market share and $1 billion in Professional Services product revenues. Oracle was No. 2 achieving 4% share, LinkedIn Corporation was the third at 4% and SAP and Salesforce were fourth and fifth place with 4% and 3%, respectively.
Through our forecast period, the Professional Services applications market is expected to reach $17.9 billion by 2020, compared with $16 billion in 2015 at a compound annual growth rate of 2.3%.
|Exhibit 2: Worldwide Professional Services Software Market 2015-2020 Forecast, $M|
|Year||2015||2020||2015-2020 CAGR, %|
Source: Apps Run The World, June 2016
Market Definitions And Forecast Assumptions
Professional services (Business, engineering, IT, legal services) – Timesheet and billing, Legal Practice Management, Project Management, Project Portfolio Management, Field Service Management Software, Professional Services Automation, FInancials, HR, Procurement
Professional services firms invest heavily in new tools that boost collaboration, CRM and HR best practices aided by a mix of new entrants from industrial ERP space namely Roper as well as Cloud startups like FinancialForce, all of which aim to accelerate legacy system replacements across different segments including AEC, business and IT consulting firms.
Here are the rankings of the top 10 Professional Services applications vendors in 2015 and their market shares in 2015.
|Rank||Vendor||2014 Professional Services Apps Revenues, $M||2015 Professional Services Apps Revenues, $M||YoY Growth||2015 Professional Services Market Share, %||Recent Developments|
|1||Microsoft||Subscribe||Subscribe||-5%||6%||Professional Services Automation, based on its long history of selling Microsoft Project, will be one of the key modules for the upcoming Dynamics 365, its next-generation Cloud ERP applications suite due out in the fourth quarter of 2016.|
|2||Oracle||Subscribe||Subscribe||3%||4%||Oracle’s PSA strategy continues to revolve around its 2008 acquisition of Primavera. The 2012 purchase of Instantis for cloud-based and on-premise project portfolio management (PPM) solutions, allows for greater Cloud scalability.|
|3||LinkedIn Corporation||Subscribe||Subscribe||32%||4%||Professional network magnet attracts 433 million members, plenty of eyeballs, religious following among recruiters and staffing firms. In June 2016, it agreed to be acquired by Microsoft for $26.2 billion.|
|4||SAP||Subscribe||Subscribe||23%||4%||Cloud subscription revenues soared after acquiring Concur.|
|5||Salesforce||Subscribe||Subscribe||21%||3%||In May 2016, Salesforce acquired Demandware for $2.8 billion, the biggest purchase in its history, bolstering its eCommerce and retail applications offerings. Demandware’s revenues will be counted toward Salesforce’s Commerce Cloud.|
|6||Wolters Kluwer||Subscribe||Subscribe||13%||3%||Formed Tax & Accounting North America unit in 2016 to combine tax and accounting apps under one roof.|
|7||Intuit Inc.||Subscribe||Subscribe||3%||3%||Converted QuickBooks customers to subscription-only model.|
|8||Aderant||Subscribe||Subscribe||15%||2%||All are operated under Roper Technologies umbrella.|
|9||Sage||Subscribe||Subscribe||0%||2%||Aligned with Salesforce for Cloud innovation as it continued to expand within the accounting trade.|
|10||UNIT4||Subscribe||Subscribe||6%||2%||Focus on business and IT consulting firms, along with other segments within the professional services vertical.|
Source: Apps Run The World, June 2016
Exhibit 4 shows our projections for the enterprise applications market by vertical segment, based on the buying preferences and the customer propensity to invest in new software within those industries as they continue to upgrade and replace many legacy industry-specific applications that have been identified and tracked in our Buyer Insight Database.
Exhibit 4: Worldwide Enterprise Applications Market Forecast 2015-2020, By Vertical Industry, $M
Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Professional Services Software applications based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these customer wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
An expanded version of this report covers the top 400+ Professional Services Software Vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares(SCORES) within their respective space. We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors(Apps Top 500) and the world’s 500 largest Cloud Applications Vendors(Cloud Top 500) ranked by their 2014-2015 product revenues. Their 2015 results are being broken down, sorted and ranked across 16 functional areas(from Analytics to Treasury and Risk Management) and by 21 vertical industries(from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market. We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world. The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.