Worldwide Financial Applications Market Shares, 2015: Year of the Cloud
This IDC study discusses the worldwide market for financial application software. This market slightly decreased (-2.0% in 2015 over 2014) to reach $20.4 billion, driven by demand for public cloud offerings, particularly in the small and medium-sized business space. The shift from traditional capex on-premises systems to opex cloud-based systems is definitively impacting growth of the financial applications market. The fastest-growing financial applications vendors in 2015 were cloud-based software providers, such as Coupa (89.3% growth in 2015 over 2014), FinancialForce (70.9% growth), Workday (55.2% growth), Xero (46.0% growth), Intacct (43.0% growth), and NetSuite (28.1% growth)."Significant amounts of data are generated daily by businesses from all corners of the market. Much of this data is tied to the financial workflows within the enterprise. Cloud-based solutions allow for the access to more data and the ability to analyze it in real time. The CFO can now make strategic decisions faster from a few hours for a monthly close to immediate access of profitability and revenue by geography, project, and location. A growing percentage of businesses will move their financial applications to the cloud as finance departments require faster and more timely information from the massive data sets produced by their ERP systems and associated applications. However, many organizations that are currently running on-premises general ledger and other financial solutions will choose to maintain these applications rather than disrupt a critical process that works," says Mickey North Rizza, program vice president, Enterprise Applications.