Table of Contents
Executive Summary
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- Impact of COVID-19 on software
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- Figure 1: Short, medium and long term impact of COVID-19 on software, 2020 (prepared on 25 June 2021)
- The market
- Market size and forecast
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- Figure 2: Market size for software, 2015-25 (prepared on 25 June 2021)
- Figure 3: Software market segmentation, by industry sector, 2020
- The key drivers
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- Figure 4: Market size for cloud computing, 2015-25 (prepared on 5 November 2020)
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- Figure 5: Development of proprietary and packaged software, 2015-20
- Companies and brands
- A vibrant UK sector
- Continued M&A activity
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- Figure 6: Global M&A software deals, 2010-20
Issues and Insights
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- How COVID-19 has changed demand
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- Figure 7: Changes in software sales, by sector, 2020
- Software M&A attractive to such a wide range of companies
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- Figure 8: Global M&A software deals, 2010-20
- Figure 9: Development of M&A software deals, 2010-20
The Market – Key Takeaways
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- COVID-19 accelerates digital transformation
- Market growth
- The fundamental software trends
Market Size and Forecast
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- Market growth irrespective of COVID-19
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- Figure 10: Short, medium and long term impact of COVID-19 on software, 2020 (prepared on 25 June 2021)
- The market
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- Figure 11: Market size for software, 2015-25 (prepared on 25 June 2021)
- Market drivers and assumptions
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- Figure 12: Planned major corporate activities in the EMEA for 2021 (% of respondents)
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- Figure 13: Key drivers affecting MBD’s market forecast, 2015-25 (prepared on 5 March 2021)
- Learnings from the last recession
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- Figure 14: Value sales of software, 2007-12
- Forecast methodology
Market Segmentation
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- Types of software
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- Figure 15: Segmentation of software by type, 2020 (%)
- Enterprise software
- Systems infrastructure software
- Application development software
- Productivity software
- Packaged and proprietary software
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- Figure 16: Segmentation between proprietary and packaged software, 2020 (%)
- Figure 17: Development of proprietary and packaged software, 2015-20
Sales by Industry Sector
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- Overview
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- Figure 18: Software market segmentation, by industry sector, 2020
- Figure 19: Packaged software market segmentation, by industry sector, 2020
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- Figure 20: Proprietary software market segmentation, by industry sector, 2020
- Agriculture/forestry
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- Figure 21: Trends in software sales to the agriculture and forestry sector, 2015-20
- Mining/quarrying
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- Figure 22: Trends in software sales to the mining sector, 2015-20
- Manufacturing
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- Figure 23: Trends in software sales to the manufacturing sector, 2015-20
- Electricity and gas
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- Figure 24: Trends in software sales to the electricity and gas sector, 2015-20
- Water
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- Figure 25: Trends in software sales to the water sector, 2015-20
- Construction
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- Figure 26: Trends in software sales to the construction sector, 2015-20
- Retail/wholesale
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- Figure 27: Trends in software sales to the retail and wholesale sector, 2015-20
- Transport/storage
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- Figure 28: Trends in software sales to the transport and storage sector, 2015-20
- Accommodation/foodservice
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- Figure 29: Trends in software sales to the accommodation and foodservice sector, 2015-20
- Information, communications/broadcasting and publishing
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- Figure 30: Trends in software sales to the information, communications and publishing sector, 2015-20
- Insurance, finance and banking
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- Figure 31: Trends in software sales to the insurance, finance and banking sector, 2015-20
- Real estate
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- Figure 32: Trends in software sales to the real estate sector, 2015-20
- Professions
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- Figure 33: Trends in software sales to the profession sector, 2015-20
- Administration
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- Figure 34: Trends in software sales to the administration sector, 2015-20
- Public administration
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- Figure 35: Trends in software sales to the public administration sector, 2015-20
- Education
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- Figure 36: Trends in software sales to the education sector, 2015-20
- Health
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- Figure 37: Trends in software sales to the health sector, 2015-20
- Arts and entertainment
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- Figure 38: Trends in software sales to the arts and entertainment sector, 2015-20
- Other services
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- Figure 39: Trends in software sales to the other services sector, 2015-20
Market Drivers
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- Introduction
- Digitisation
- The key to productivity
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- Figure 40: Labour productivity in the UK compared with other major economies, 2010-19
- The COVID-19 impact
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- Figure 41: UK labour productivity, output per hour and per worker, Q1 2017-Q3 2020
- The internet has changed demand
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- Figure 42: Worldwide internet usage, by region, 2000 and 2020 (millions and %)
- Figure 43: Proportion of UK businesses with internet access in the UK, by size of company, 2014-19 (%)
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- Figure 44: Residential fixed-line broadband coverage across the UK, by nation, March 2020
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- Figure 45: Proportion of employees using computers and the internet for their business, by size of company, 2019
- Figure 46: Segmentation of employees with work internet access, by size of company, 2019 (million by number of employees)
- COVID-19 changes remote working
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- Figure 47: Number of people mainly working from home, 2015-19
- Cloud computing boosted by COVID-19
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- Figure 48: Market size for cloud computing, 2015-25 (prepared on 5 November 2020)
- Edge computing changing demand
- Computer security
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- Figure 49: Market size for computer security, 2015-25 prepared on 24 February 2021
- Internet of things
Companies and Brands – Key Takeaways
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- COVID-19 disrupts demand
- COVID-19 has little impact on M&A activity
- The industry structure
Industry Structure
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- Overview
- Business and domestic software
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- Figure 50: Development of the business and domestic software publishing industry, 2016-20
- Figure 51: Composition of the business and domestic software publishing industry, by company size, 2020
- The customisation sector
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- Figure 52: Development of the computer consultancy industry, 2016-20
- Figure 53: Composition of the computer consultancy industry, by company size, 2020
- Other software publishing
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- Figure 54: Development of the other software publishing industry, 2016-20
- Figure 55: Composition of the other software publishing industry, by company size, 2020
Competitive Strategies
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- Mega-scale acquisitions
- M&A activity continues
- Targeting “prosumers”
Company Profiles
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- IBM
- Activity
- Performance
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- Figure 56: Financial performance of IBM United Kingdom, 2015-19 (£ million)
- Strategy
- Micro Focus International
- Activity
- Performance
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- Figure 57: Financial performance of Micro Focus International, 2016-20 (US$ million)
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- Figure 58: Revenue segmentation of Micro Focus International, 2020
- Strategy
- Microsoft Corporation
- Activity
- Performance
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- Figure 59: Product and service segmentation of Microsoft, 2020 (US$ million)
- Figure 60: Financial performance of Microsoft Ltd (£ million)
- Strategy
- Oracle Corporation
- Activity
- Performance
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- Figure 61: Revenue segmentation of Oracle Corporation, 2021
- Figure 62: Financial performance of Oracle Corporation UK, 2016-20 (£ million)
- Strategy
- SAP (UK)
- Activity
- Performance
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- Figure 63: Revenue segmentation of SAP, 2020 (€ millions)
- Figure 64: Financial performance of SAP UK, 2015-19 (£ million)
- Strategy
- Salesforce.com
- Activity
- Performance
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- Figure 65: Revenue development of Salesforce.com, 2016-21
- Figure 66: Segmentation of Salesforce.com subscription and support revenues, by service offering, 2021 (US$ million)
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- Figure 67: Financial performance of Salesforce UK, 2016-20 (£ million)
- Strategy
- Zoom Video Communications
- Activity
- Performance
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- Figure 68: Revenue development of Zoom Video Communications, 2018-21
- Strategy
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
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