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IDC OPINION
The enterprise application software (EAS) market in Croatia decreased year on year
in 2010 to $37.54 million. The negative influence of the crisis that started in 2008 and
a lack of large projects were the main reasons for the decline.
Enterprise resource management (ERM) applications were the most popular
modules on the Croatian EAS market in 2010, followed by supply chain
management (SCM) solutions, and operation and manufacturing applications
(OMA). Business analytics (BA) applications was the fourth biggest functional
category on the Croatian EAS market last year, with customer relationship
management (CRM) remaining in last place.
The retail sector continued as the top vertical in terms of EAS license and
maintenance (L&M) revenue in Croatia in 2010. Wholesale jumped to second
position and was the only top five vertical to post growth, thanks to the strong
presence of leading EAS vendors Microsoft Hrvatska and IN2. Process
manufacturing, healthcare, and discrete manufacturing accounted for the rest of
the market L&M revenue in the country last year.
Organizations in the small and medium-sized business (SMB) segment remained
the country's top spenders in the EAS market in 2010 from the end-user
perspective. This market segment has the greatest potential to lead the recovery
and growth of the local EAS market over the forecast period.
Vendors and their partners should focus on new delivery models such as cloud
computing and should make a priority of offering extended functionalities to
existing clients. Maintenance revenues from existing installations became very
important during the crisis and will continue to record growth during the recovery
period. Customer satisfaction should be a key market strategy, followed by the
acquisition of new clients.
TABLE OF CONTENTS
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In This Study
Methodology ............................................................................................................................................. 1
Executive Summary .................................................................................................................................. 1
S i t u a t i o n O ve r v i e w
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25
Learn More
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2011 IDC
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LIST OF TABLES
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1
Vendor Market Share of Business Analytics L&M Revenue in Croatia, 2010 ............................. 14
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2011 IDC
LIST OF FIGURES
P
1
Vendor Market Share of EAS L&M Revenue (US$M) in Croatia, 2010 ........................................ 2
2011 IDC
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IN THIS STUDY
Methodology
See the Learn More section at the end of this document for information on the
methodology.
Executive Summary
In 2010, the EAS market in Croatia contracted 7.3% year on year to $37.54 million.
The negative influence of the financial crisis that started in 2008 and a lack of large
projects were the main reasons for the decline.
SAP remained the top vendor on the Croatian EAS market in 2010, although the
company's L&M revenue in the country decreased 29.4% year on year to $5.80
million, representing 15.5% of the EAS market. Microsoft held on to second position,
with EAS L&M revenue of $5.54 million and 14.8% share (compared with $4.99
million and 12.3% share in 2009). IN2 captured third place, with L&M revenue of
$3.63 million and 9.7% share. Laus CC was in fourth place, with 6.3% share, after its
EAS L&M revenue increased to $2.38 million in 2010. Oracle rounded out the top five
vendors, with revenue of $1.91 million and 5.1% EAS market share. Overall,
international vendors captured 39.7% of the total EAS L&M revenue on the Croatian
market in 2010, down 2.6 percentage points year on year, while local vendors
accounted for the remaining 60.3%.
The retail sector remained Croatia's largest vertical market in terms of EAS spending,
accounting for $8.47 million and 22.6% share. The wholesale sector leapt to second
place after spending $5.07 million in 2010 to claim 13.5% share. Process
manufacturing dropped to third position, with organizations in this sector spending
$3.60 million to represent 9.6% share. Discrete manufacturing again ranked fourth,
generating EAS L&M revenue of $2.91 million for 7.7% share. The healthcare sector
jumped to fifth place in 2010 and reached $2.90 million, just a shade behind the
discrete manufacturing vertical.
ERM remained the leading segment in Croatia's EAS market in 2010, valued at
$24.48 million and constituting 65.2% of the total market. SCM was second, capturing
13.0% of the EAS market, with a value of $4.88 million, while third-ranked OMA held
11.4% share, at $4.26 million. The BA and CRM markets were valued at $2.25 million
and $1.66 million for the year, respectively.
The negative influence of the financial crisis hit all sectors in Croatia hard in 2010,
mostly in the form of cancelled or postponed projects. The first signs of recovery are
not expected to appear before the second half of 2011, and the Croatian EAS market
will not rebound to pre-crisis levels before 2012.
IDC expects the Croatian EAS market to expand at a compound annual growth rate
(CAGR) of 9.5% over the 20112015 forecast period to reach a value of $59.19
million in 2015.
2011 IDC
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FIGURE 1
Vendor Market Share of EAS L&M Revenue (US$M) in Croatia,
2010
SITUATION OVERVIEW
Market Characteristics
Information Technology Market Overview
In 2010, the Croatian IT market totaled $1.06 billion, down 5.3% year on year in U.S.
dollar terms. Measured in local currency, the market declined 1.3% from the previous
year. Hardware accounted for 49.6% of the total market, while software made up
15.3% share, and IT services 35.1%.
IDC expects IT spending in Croatia to be nearly flat, rising only 0.1% year on year in
2011. However, growth will accelerate to a CAGR of 8.2% across the five-year
forecast period. Expenditures on IT products and services are expected to total $1.56
billion in 2015.
Drivers
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million. In 2010, the BA and CRM markets were valued at $2.25 million and $1.66
million, respectively. All market segments declined in 2010 compared to 2009.
Although dropping 29.4% in revenue terms, SAP was again the leader on the
Croatian EAS market, reporting L&M revenue of $5.80 million for 15.5% share. The
decrease in revenue was caused by a lack of new, large EAS projects, leading the
vendor to focus on BI tools and tools used for optimization and systems upgrade at
existing SAP clients. In 2010, SAP increased its installed base through three new
clients The Fund for Professional Rehabilitation, Pharmas, and Piramida to make
a total of 106. The vendor's Croatian partner network included 17 companies in 2010,
compared to 12 in 2009. SAP employs a staff of 19 and has more than 300 certified
consultants in the country. In 2011, it will focus on informatization of the public sector
and the development and usage of mobility solutions.
Microsoft held on to its second position on Croatia's EAS market in 2010, reaching a
value of $5.54 million for 14.8% share. The company's revenue grew by 11.0% year
on year and it increased its share on the total EAS market by 2.4 percentage points.
The company's EAS revenue increased due to the acquisition of 33 new clients in
2010, most of them SMBs. The largest EAS customers last year were Auto Kreso,
Puris, and Petrokov. Through its well-developed partner network, Microsoft
maintained installed base of 245 companies. With the Stratus solution, developed by
local partner Fortempo and based on the cloud concept, Microsoft wants to fortify its
position in the SMB segment. Besides EAS solutions in the cloud, Microsoft will also
concentrate on Dynamics AX solutions in the healthcare vertical.
IN2 Group was in third position on the Croatian EAS market in 2010, reporting EAS
revenue of $3.63 million for 9.7% share. The leading local vendor, IN2 Group has
traditionally focused mainly on Oracle's EAS solution. In 2007, it acquired two local
EAS companies, Info Opus and Grad, and developed its EAS model specialized for
the retail vertical. IN2 Group will strengthen its position in the healthcare vertical by
offering Dynamics AX solutions on the local market.
Laus CC remained in fourth place on the local EAS market last year, with revenue
approaching $2.38 million and 6.3% share of the overall market. Laus CC gained only
one new client in 2010 and the bulk of its EAS revenue came from the renewal of its
maintenance contracts with existing customers. With installed base of 23 companies,
Laus CC will focus on low-cost specific solutions for particular market segments in the
future as a supplement to existing EAS solutions.
Oracle retained fifth place in 2010, recording $1.91 million in EAS revenue for 5.1%
share on the overall EAS market. The company acquired no new EAS clients in
Croatia in 2010, but carried on some implementations that had started the previous
year. Oracle focused on providing ERM and BI and was mostly present in the
government sector. It is expected to increase its installed base in the SMB segment
and should remain strong competition for other international vendors by offering its
eBusiness Suite.
The top five vendors together captured 51.3% of the Croatian EAS market in 2010,
down from 50.4% in 2009. The bulk of local vendors with revenue over one million
U.S. dollars led by POINT, PIS, and Enel-Split together recorded $10.66 million
and accounted for 28.4% share on the overall market.
Times Computers, a local EAS vendor specialized in the retail and wholesale
verticals, merged with ITSM Partner in July to form one company, ITS Partner.
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2011 IDC
In 2010, Alfatec Group, a distributor for global software vendors, acquired the local
company MIPS, which has its own IT system, Apropos, for the medium-sized and
large business segment and EAS solutions specialized for the transportation and
logistics sector.
The retail sector was again the biggest spender on Croatia's EAS market in 2010,
with $8.47 million and 22.6% share. This sector declined 12.2% year on year and lost
1.3 percentage points in overall market share, despite some new installations in the
SMB segment and a sizable installed base. In the retail sector, there were no large
projects in 2010, and EAS vendors focused on maintenance. IDC expects EAS
spending in the retail sector to increase at a CAGR of 9.3% over the five-year
forecast period to reach $13.22 million in 2015.
In 2010, the wholesale sector jumped from third to second position on the Croatian
EAS market, accounting for $5.07 million of revenue and 13.5% share (up from
10.5% share the previous year). Spending in this segment grew 13.5% year on year.
This was due to Microsoft EAS implementation at the company Petrokov and local
vendors' implementations: Spin Informatika and POINT sold their own EAS solutions
to Agrokor and Roto Dynamic, respectively. IDC believes that EAS spending in the
wholesale sector in Croatia will increase at a CAGR of 8.8% over the five-year
forecast period to reach $7.74 million in 2015.
The process manufacturing sector dropped to third place, spending $3.60 million on
EAS solutions in 2010 and recording a year-on-year decline of 17.3% (after a plunge
of 33.6% in 2009) to account for 9.6% of the Croatian EAS market. The influence of
the crisis and a high base year were the main reasons for the steep decline. IDC
predicts that EAS spending in the process manufacturing sector will rise at a CAGR of
10.7% over the five-year forecast period to reach $5.98 million in 2015.
The discrete manufacturing sector in Croatia spent $2.91 million on EAS in 2010,
which was 10.8% less than the year before. This sector captured 7.7% share of the
overall EAS market, down 0.3 percentage points from 2009. Reduced IT consumption
in the discrete manufacturing sector was the major factor behind the decline. IDC
believes that EAS spending in the discrete manufacturing sector will increase at a
CAGR of 9.9% over the five-year forecast period to reach $4.65 million in 2015.
The healthcare sector in Croatia switched positions with transportation to become the
fifth vertical by spending on EAS solutions in 2010, with $2.90 million and 7.7%
market share. Growth of 16.6% year on year can be attributed to SAP EAS
implementation at the company Pharmas and the maintenance of installed EAS
applications in HZZO by leading local vendor IN2, which specializes in the healthcare
vertical through its firm Grad. IDC believes that EAS spending in the healthcare
sector will increase at a CAGR of 11.7% over the five-year forecast period to reach
$5.05 million in 2015.
The local government sector registered strong growth of 37.5% in 2010 to total $0.9
million. This uptick can be attributed to the constant presence of Laus CC, the fourth
biggest vendor on the Croatian EAS market, in this vertical. Laus CC, based in
Dubrovnik, is constantly improving its EAS solutions and enjoys stable cooperation
with local government offices in the city.
In 2010, medium-sized organizations remained the largest source of EAS L&M
revenue on the Croatian market, investing $12.92 million, a decline of 9.5% year on
year. The combined spending of small businesses and small offices reached $9.71
2011 IDC
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million although recording a drop of 1.6% from 2009. The large business segment
ranked third, with EAS spending of $8.76 million, growing 11.1% year on year. The
very large business segment again spent the least on EAS solutions in Croatia last
year ($6.15 million), decreasing 27.1% compared with the previous year. Despite a
decline in spending, the SMB sector remained the largest spender in 2010, due to the
strong presence of leading EAS vendors like SAP, Microsoft, and Oracle. IDC
believes that the unsaturated SMB segment still has good potential for growth in the
forecast period.
In terms of the number of installations, the small office and small business segments
together accounted for 3,040 active EAS users in Croatia, down 2.3 percentage
points in the total market in 2010. Medium-sized organizations' share rose 1.3%,
while the large and very large organization segments together accounted for 284
installations among the country's active EAS users.
IDC believes that vendors on the Croatian EAS market will focus on expanding their
offerings and upgrading their existing systems in 2011. In currently deployed IT
systems, significant progress is expected in BI tools, risk management, and document
management applications.
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2011 IDC
TABLE 1
Vendor Market Share of EAS L&M Revenue in Croatia, 2010
SAP d.o.o.
Microsoft Hrvatska
IN2
LAUS CC d.o.o.
Oracle Hrvatska
POINT d.o.o.
PIS d.o.o.
Enel-Split d.o.o.
Datalab
Spin Informatica
LASER LINE
Login
Omega software
Istra informatiki ininjering
INFOMARE d.o.o. Zagreb
D.A.M.
SVAM plus d.o.o.
ITS Partner
Infodesign d.o.o.
ININ
Infosistem d.d.
MIPS d.o.o.
Infor
TIRON
N-Lab
Azelija
Epicor Scala
Mesonic
Others
Total
Value (US$M)
Share (%)
5.80
5.54
3.63
2.38
1.91
1.84
1.56
1.53
1.37
1.35
1.18
1.09
1.09
1.02
0.80
0.54
0.53
0.49
0.39
0.34
0.29
0.27
0.17
0.16
0.16
0.10
0.06
0.06
1.90
15.5
14.8
9.7
6.3
5.1
4.9
4.1
4.1
3.7
3.6
3.1
2.9
2.9
2.7
2.1
1.4
1.4
1.3
1.0
0.9
0.8
0.7
0.4
0.4
0.4
0.3
0.2
0.2
5.0
37.54
100.0
Important factors that affected EAS sales in 2010 and which are likely to influence the
market in the future are listed below.
Financial Crisis: The economic crisis and shrinking demand intensified
competitive pressures on the Croatian EAS market. New and planned software
purchases were postponed or narrowed in scope with the aim of optimizing
costs. Faced with declining business, payment problems, and more available
time, numerous EAS vendors reassessed their value chain and marketing mix,
carried out necessary restructuring and cost optimization, while acquiring new
skills and competencies to prepare for the expected market recovery.
Lack of High Profile Implementations: Starting from a high base year, the
2010 EAS market declined because there was a lack of the high-profile
implementations seen in 2009, which were carried out despite the crisis.
2011 IDC
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2011 IDC
FIGURE 2
EAS L&M Revenue (US$M) by Functional Area in Croatia, 2010
2011 IDC
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TABLE 2
Vendor Market Share of ERM L&M Revenue in Croatia, 2010
SAP d.o.o.
Microsoft Hrvatska
IN2
LAUS CC d.o.o.
POINT d.o.o.
Oracle Hrvatska
PIS d.o.o.
Datalab
Omega software
LASER LINE
INFOMARE d.o.o. Zagreb
Enel-Split d.o.o.
Login
Spin Informatica
Istra informatiki ininjering
D.A.M.
ITS Partner
Infodesign d.o.o.
SVAM plus d.o.o.
MIPS d.o.o.
Infosistem d.d.
ININ
Infor
Azelija
TIRON
N-Lab
Mesonic
Epicor Scala
Others
Total
Value (US$M)
Share (%)
4.93
3.49
1.94
1.88
1.62
1.43
1.00
0.92
0.87
0.83
0.72
0.66
0.62
0.41
0.31
0.25
0.23
0.20
0.20
0.16
0.15
0.14
0.09
0.08
0.07
0.05
0.03
0.01
1.19
20.2
14.3
7.9
7.7
6.6
5.9
4.1
3.8
3.6
3.4
2.9
2.7
2.5
1.7
1.3
1.0
0.9
0.8
0.8
0.7
0.6
0.6
0.4
0.3
0.3
0.2
0.1
0.1
4.9
24.48
100.0
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2011 IDC
TABLE 3
Vendor Market Share of SCM L&M Revenue in Croatia, 2010
Value (US$M)
Share (%)
Microsoft Hrvatska
Enel-Split d.o.o.
IN2
PIS d.o.o.
Login
LAUS CC d.o.o.
POINT d.o.o.
Spin Informatica
ITS Partner
SAP d.o.o.
Omega software
SVAM plus d.o.o.
Oracle Hrvatska
Istra informatiki ininjering
Infosistem d.d.
ININ
N-Lab
D.A.M.
Infodesign d.o.o.
MIPS d.o.o.
INFOMARE d.o.o. Zagreb
Infor
Epicor Scala
TIRON
Mesonic
Others
0.94
0.52
0.47
0.39
0.31
0.24
0.22
0.20
0.20
0.17
0.11
0.10
0.10
0.09
0.08
0.07
0.06
0.06
0.05
0.05
0.04
0.04
0.03
0.02
0.01
0.32
19.3
10.7
9.7
8.0
6.3
4.9
4.5
4.2
4.0
3.6
2.2
2.0
2.0
1.9
1.7
1.4
1.3
1.2
1.1
1.1
0.8
0.7
0.5
0.5
0.1
6.5
Total
4.88
100.0
2011 IDC
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11
TABLE 4
Vendor Market Share of OMA L&M Revenue in Croatia, 2010
Value (US$M)
Share (%)
IN2
Istra informatiki ininjering
Spin Informatica
Microsoft Hrvatska
Enel-Split d.o.o.
Datalab
LAUS CC d.o.o.
D.A.M.
SVAM plus d.o.o.
SAP d.o.o.
PIS d.o.o.
ININ
Infodesign d.o.o.
ITS Partner
Infosistem d.d.
TIRON
Infor
MIPS d.o.o.
Azelija
Mesonic
Epicor Scala
Others
1.15
0.42
0.34
0.28
0.28
0.26
0.24
0.22
0.13
0.12
0.11
0.08
0.08
0.06
0.05
0.05
0.04
0.04
0.03
0.01
0.01
0.27
27.0
9.8
7.9
6.5
6.5
6.1
5.6
5.3
3.1
2.7
2.6
2.0
1.9
1.5
1.3
1.1
0.9
0.9
0.6
0.2
0.1
6.3
Total
4.26
100.0
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2011 IDC
TABLE 5
Vendor Market Share of CRM L&M Revenue in Croatia, 2010
Value (US$M)
Share (%)
Microsoft Hrvatska
SAP d.o.o.
Oracle Hrvatska
Spin Informatica
Istra informatiki ininjering
LASER LINE
ININ
SVAM plus d.o.o.
PIS d.o.o.
N-Lab
MIPS d.o.o.
Infodesign d.o.o.
Epicor Scala
TIRON
Mesonic
Others
0.50
0.29
0.19
0.14
0.13
0.12
0.05
0.05
0.05
0.03
0.01
0.01
0.01
0.01
0.01
0.07
30.0
17.4
11.5
8.1
7.9
7.1
3.0
2.9
2.8
1.9
0.8
0.7
0.6
0.5
0.3
4.4
Total
1.66
100.0
Business Analytics
The business analytics (BA) secondary software market includes the functional
markets of end-user query, reporting and analysis tools, data mining, data marts, data
warehousing tools, and analytical application software.
2011 IDC
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13
TABLE 6
Vendor Market Share of Business Analytics L&M Revenue in Croatia, 2010
Value (US$M)
Share (%)
Microsoft Hrvatska
SAP d.o.o.
Spin Informatica
LASER LINE
Datalab
Oracle Hrvatska
Login
Omega software
Enel-Split d.o.o.
IN2
Istra informatiki ininjering
SVAM plus d.o.o.
INFOMARE d.o.o. Zagreb
Infodesign d.o.o.
LAUS CC d.o.o.
TIRON
N-Lab
PIS d.o.o.
Epicor Scala
Mesonic
Others
0.33
0.29
0.27
0.24
0.19
0.19
0.16
0.11
0.08
0.07
0.06
0.05
0.04
0.04
0.02
0.02
0.02
0.02
0.01
0.01
0.04
14.8
12.9
12.0
10.5
8.6
8.5
7.3
4.8
3.4
2.9
2.7
2.4
1.8
1.7
1.1
0.7
0.7
0.7
0.4
0.3
1.9
Total
2.25
100.0
14
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2011 IDC
FIGURE 3
EAS L&M Revenue (US$M) by Operating System in Croatia,
2010
TABLE 7
EAS L&M Revenue by Database Installation Environment in Croatia, 2010
Value (US$M)
Share (%)
Microsoft
Oracle
IBM
Sybase
Progress
Other
17.04
14.80
2.87
0.57
0.45
1.80
45.4
39.4
7.7
1.5
1.2
4.8
Total
37.54
100.0
2011 IDC
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15
FIGURE 4
EAS L&M Revenue (US$M) by Vertical Market in Croatia, 2010
TABLE 8
EAS L&M Revenue by Vertical Market in Croatia, 2010
Value (US$M)
Share (%)
2.05
2.91
3.60
2.08
1.91
1.80
8.47
5.07
0.40
0.49
1.07
1.63
0.34
1.85
2.90
0.97
0.00
5.5
7.7
9.6
5.5
5.1
4.8
22.6
13.5
1.1
1.3
2.8
4.3
0.9
4.9
7.7
2.6
0.0
37.54
100.0
16
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2011 IDC
TABLE 9
EAS Installed Base by Vertical Market in Croatia, 2010
All Customers
Number (#)
Share (%)
277
421
341
48
31
47
1,024
897
90
352
346
63
32
66
6.9
10.4
8.5
1.2
0.8
1.2
25.4
22.2
2.2
8.7
8.6
1.6
0.8
1.6
Total
4,035
100.0
FIGURE 5
EAS L&M Revenue (US$M) by Market Segment in Croatia, 2010
2011 IDC
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17
TABLE 10
EAS Revenue by Market Segment in Croatia, 2010
Value (US$M)
Share (%)
2.23
7.48
12.92
8.76
6.15
5.9
19.9
34.4
23.3
16.4
Total
37.54
100.0
FIGURE 6
EAS Installed Base by Market Segment in Croatia, 2010
18
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2011 IDC
FIGURE 7
New 2010 EAS Installations by Market Segment in Croatia
TABLE 11
EAS Installed Base by Market Segment in Croatia, 2010
All Customers
Number
Share (%)
1,870
1,170
711
213
71
46.3
29.0
17.6
5.3
1.8
97
69
64
8
1
40.6
28.9
26.8
3.3
0.4
Total
4,035
100.0
239
100.0
FUTURE OUTLOOK
Forecast and Assumptions
Top Three Key Forecast Assumptions
2011 IDC
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19
TABLE 12
Top 3 Assumptions for the Croatia EAS Market, 20112015
Market Force
IDC Assumption
Significance
Changes to This
Assumption That
Could Affect Current
Forecast
Comment
GDP
Development
There is a strong
correlation between
economic conditions
and IT spending.
Crisis Duration
Croatia's main
challenge will be
financing public
consumption and
servicing external
debt, in the
atmosphere of an
anemic economy, an
environment of
illiquidity, and major
unemployment. These
factors make Croatia's
medium-term future
uncertain.
The fear of a
prolonged recession
affects business and
consumer confidence
and the willingness to
invest.
EU Membership
As of May 2011, 30
out of a total of 35
negotiating chapters
have been closed. The
negotiating process is
expected to be
completed in June
2011. The earliest
likely date for EU entry
is 2012.
The ratification
process by EU
member countries
could delay accession
until 2013 or even the
beginning of 2014.
20
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2011 IDC
TABLE 13
Key Forecast Assumptions for the EAS Market in Croatia, 20112015
Market Force
IDC Assumption
Impact
Parliamentary elections to be
held at the end of 2011 or early
2012 will further impede public IT
investments.
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
(Very High,
High, Medium,
Low, Very
Low)
Macroeconomics
GDP Development
Foreign Direct
Investment
Crisis Duration
EU Membership
Parliamentary
Elections
Technology/
Service
Developments
Mobility Solutions
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TABLE 13
Key Forecast Assumptions for the EAS Market in Croatia, 20112015
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
(Very High,
High, Medium,
Low, Very
Low)
Market Force
IDC Assumption
Impact
Software as a
Service
High. Implementations
comprising more advanced
functionalities (that provide for
significant and regular
maintenance-derived
revenues) are sustaining
value growth on the EAS
market.
Moderate. Qualitative
solutions based on new EAS
installations will have a
positive influence on
efficiency, production, and
ROI.
Market
Characteristics
Maturing EAS
Market
Increased EAS
Spending by SMBs
Penetration of
Global Vendors
Vertical Markets
Retail
Manufacturing
Healthcare
Public Sector
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TABLE 13
Key Forecast Assumptions for the EAS Market in Croatia, 20112015
Market Force
Accelerator/
Inhibitor/
Neutral
IDC Assumption
Impact
Certainty of
Assumption
(Very High,
High, Medium,
Low, Very
Low)
Legend: very low, low, moderate, high, very high
Source: IDC, 2011
Forecast
Table 13 below provides a forecast of EAS software revenue by vertical market
through 2015. Based on the assumptions outlined above, IDC expects the EAS
market to expand at a CAGR of 9.5% across the five-year forecast period.
TABLE 14
Forecast and Analysis of EAS L&M Revenue by Vertical Market in Croatia
20112015
2010
2011
2012
2013
2014
2015
CAGR (%)
2.05
2.91
3.60
2.08
1.91
1.80
8.47
5.07
0.40
0.49
1.07
1.63
0.34
1.85
2.90
0.97
2.20
3.06
3.89
2.15
2.04
1.92
8.95
5.40
0.44
0.52
1.10
1.74
0.35
1.85
3.21
1.01
2.41
3.39
4.34
2.31
2.20
2.10
9.89
5.95
0.49
0.55
1.23
1.95
0.43
2.32
3.70
1.19
2.64
3.77
4.85
2.48
2.36
2.32
10.94
6.53
0.54
0.59
1.39
2.20
0.47
2.60
4.16
1.34
2.88
4.25
5.45
2.71
2.54
2.56
12.11
7.14
0.60
0.63
1.54
2.47
0.53
2.88
4.64
1.51
3.10
4.65
5.98
2.90
2.70
2.76
13.22
7.74
0.65
0.66
1.67
2.74
0.58
3.13
5.05
1.65
8.7%
9.9%
10.7%
6.9%
7.1%
8.9%
9.3%
8.8%
10.1%
6.2%
9.4%
11.0%
11.6%
11.1%
11.7%
11.2%
37.54
39.83
44.46
49.20
54.44
59.19
9.5%
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Market Context
IDC's 20112015 forecast for the Croatian EAS market study differs from the 2010
2014 forecast published in last year's study of this market. The forecast for the
coming five years has been revised downwards as a result of a larger decline in 2010
than previously anticipated due to the financial crisis. Table 14 and Figure 8 below
illustrate the change between last year's forecast and the current forecast.
The forecast was changed due to the following factors:
Although the recession negatively impacted the EAS market in 2010, mild
recovery is expected in 2011 in nearly all sectors. Parliamentary elections
announced for the end of 2011, will hamper significant growth of IT consumption.
Healthy growth is expected in the 20122014 period.
Closing negotiating chapters and EU accession projected for 20122013 will
positively influence the Croatian IT market and, consequently, EAS spending
over the forecast period. The inflow of capital from regulatory compliance
programs and adjustments to reach EU standards will drive technology spending.
FIGURE 8
Forecast Comparison of the EAS Market (US$M) in Croatia,
20112015
TABLE 15
Forecast Comparison of the EAS Market (US$M) in Croatia, 20112015
2007
2008
2009
2010
2011
2012
2013
2014
2015
35.75
45.52
42.01
38.42
37.54
40.87
39.83
45.72
44.46
45.72
49.20
55.43
54.44
59.19
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ESSENTIAL GUIDANCE
The growing EAS installed base is becoming more important as a revenue
stream (from add-ons and maintenance). Vendors should tend to their existing
clients by providing affordable add-ons and upgrades.
The ongoing crisis period should be used by EAS vendors for restructuring,
developing new delivery methods, and making channel improvements, as it will
be difficult to find time for such undertakings once Croatia's economy has begun
to recover.
In order to stay competitive, local vendors should develop products for specific
niche markets and then target them proactively, not least because international
vendors will continue to adapt their solutions to meet local needs.
New delivery models like SaaS will increase demand in the medium to long term,
due to ease of use and cost savings for end users.
CRM and BA modules will gain in popularity among smaller organizations in the
coming years. Vendors capable of providing affordable solutions for business
performance tracking and user-friendly CRM will have a clear advantage in the
increasingly competitive Croatian market.
LE ARN MORE
Related Research
Romania Enterprise Application Software Market 20112015 Forecast and 2010
Vendor Shares (IDC #ER08T)
Bulgaria Enterprise Application Software Market 20112015 Forecast and 2010
Vendor Shares (IDC #ER01T)
Poland Enterprise Application Software Market 20112015 Forecast and 2010
Vendor Shares (IDC #ER07T)
Slovenia Enterprise Application Software Market 20112015 Forecast and 2010
Vendor Shares (IDC #ER11T)
Hungary Enterprise Application Software Market 20112015 Forecast and 2010
Vendor Shares (IDC #ER06T)
Definitions
IDC maintains a rigorous and consistent classification system, or taxonomy, for
packaged software. The functional software markets defined by the taxonomy
represent a collectively exhaustive and mutually exclusive view of the worldwide
software marketplace.
Currently, the taxonomy includes 80 individual markets grouped within three primary
segments: 1) applications, 2) application development and deployment software, and
3) system infrastructure software.
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Functional Markets
IDC divides packaged software into three primary markets: 1) applications, 2)
application development and deployment software, and 3) system infrastructure
software. Each of these primary markets is subdivided into 19 secondary markets;
these are further subdivided into 80 markets.
General Functional Definitions
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FIGURE 9
IDC's Software Taxonomy, 2010
8 Secondary Markets
7 Secondary Markets
4 Secondary Markets
33 Markets
23 Markets
24 Markets
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Financial applications are designed to support accounting, financial, and treasury and
risk management functions. The financial applications market consists of the
submarkets discussed in the following sections.
Accounting software supports general financial management business processes
such as accounts payable, accounts receivable, general ledger, and fixed asset
accounting, as well as more specialized functions such as credit and collections
management and automation, dispute resolution, enterprise spend management,
project accounting and costing, tax and revenue management and reporting, nonprofit
fund accounting, point of sale, invoicing, electronic bill presentment and payment, and
transactional financial reporting and business intelligence embedded into accounting
applications. The following are representative vendors and products in this
submarket:
Epicor (Epicor Financials Suite)
Microsoft (accounting modules in Dynamics GP, AX)
Oracle (E-Business Suite Financials)
Sage Group (FAS Fixed Assets)
SAP (financials modules in SAP ERP 6.0)
Treasury and risk management applications support corporate treasury operations
(including the treasuries of financial services enterprises) with the corresponding
financial institution functionality and optimize related cash management, deal
management, and risk management functions as follows:
Cash management automation includes several treasury processes involving
electronic payment authorization, bank relationship management, cash
forecasting, and others.
Deal management automation includes processes for the implementation of
trading controls, the creation of new instruments, market data interface from
manual or third-party sources, and others.
Risk management automation includes performance analysis, Financial
Accounting Standard (FAS) 133 compliance, calculation of various metrics used
in fixed-income portfolio analysis, market-to-market valuations, and others.
The following are representative vendors and products in this submarket:
IRIS Riskpro
Sophis Risque and Value
SunGard eTreasury eXchange (eTx) with AvantGard enterprise applications
Wall Street Systems Treasury
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Project and portfolio management (PPM) applications are used for automating and
optimizing the initiating, planning/scheduling, allocation, monitoring, and measuring of
activities and resources required to complete projects. In addition, the portfolio
management capabilities enable the tracking of an aggregation of project, products,
programs, and/or initiatives to oversee resource allocation, for making ongoing
investment and prioritization decisions, and to track risks as part of an overall
portfolio. Ultimately, PPM applications help organizations manage the scope, time,
and cost of discrete sets of related people processes (projects) on an individual and
portfolio basis. IDC uses a wide definition of PPM to include the breadth of solutions
that use PPM features at their core, such as architectural/engineering/construction
management (AEC) or building infrastructure information management (BIIM),
asset/capital management (A/C), IT project portfolio management (ITPPM), new
product development/introduction management (NPDI), professional service
automation (PSA) or services resource planning (SRP), and other industry-oriented
solutions developed around the primary premise of successful "project" completion as
the main business purpose. The following are representative vendors and products in
this market:
CA Clarity Portfolio Manager and Clarity Project Manager
Deltek Vision
Meridian Proliance
Microsoft Office Project
Oracle Projects and Primavera Project Management
SAP xRPM (Resource and Portfolio Management)
Enterprise Asset Management
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Services operations management applications support the services supply chain and
are unique to particular industries. These industry-specific applications cover a broad
range of activities such as automating claim processes (as applied to insurance
functions), automating admissions/discharges and transfers of patients (as applied to
healthcare functions), or automating energy trading (as applied to energy and utility
functions). Other examples of industry-specific applications are those that enable the
automation of real estate, business, legal services, banking and finance, education,
government, social services, and transportation. The following are representative
vendors and products in this market:
Cerner Corp. (Millennium)
McKesson ClaimsXten for insurance claims management
Oracle Utilities
Manufacturing
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replenishment, and site management. Among them are retail-specific and wholesalespecific applications. Representative vendors and products in this market are:
Epicor's Retail SoftwareSystems
JDA Trade Event Management for retail
Oracle Retail Merchandise Operations Management
SAP EH&S
Customer Relationship Management Applications
Sales automation applications include both sales management applications and sales
force automation applications. Functionality includes the following:
Account/contact management
Lead tracking
List management
Mobile sales
Opportunity management
Partner relationship management (PRM)
Sales analysis and planning tools
Sales configuration tools
Sales history
Team selling
Telemarketing and telesales scripting
Territory management
The following are representative vendors and products in this market:
Oracle (Oracle Sales, Oracle's Siebel Sales, Oracle Sales Prospector, Oracle
CRM On Demand Sales)
Salesforce.com (Sales Force Automation)
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Contact center applications automate functions relating to the operations of the CRM
installation. These applications, although enabling in function, do not have a desktop
end-user focus. Products included in this category are ACD, predictive dialing,
telephony integration, and universal queuing. The following are representative
vendors and products in this market:
Aspect (Call Center ACD, Unified IP)
Avaya (Call Center, Interaction Center, Contact Center Express, Customer
Interaction Express)
Genesys Labs (Customer Interaction Management Platform, Agent Desktop,
Proactive Contact, Voice Platform)
Data Access, Analysis, and Delivery Software
Data access, analysis, and delivery products are end useroriented tools for ad hoc
data access, analysis, and reporting as well as production reporting. Products in this
category are most commonly used by information consumers or power users rather
than by professional programmers. Examples include query, reporting,
multidimensional analysis, and data mining and statistics tools. The data access,
analysis, and delivery markets are defined in the following sections.
End-User Query, Reporting, and Analysis
Query, reporting, and analysis software includes ad hoc query and multidimensional
analysis tools as well as dashboards and production reporting tools. Query and
reporting tools are designed specifically to support ad hoc data access and report
building by either IT or business users. This category does not include other
application development tools that may be used for building reports but are not
specifically designed for that purpose. Multidimensional analysis tools include both
online analytical processing (OLAP) servers and client-side analysis tools that provide
a data management environment used for modeling business problems and analyzing
business data. Packaged data marts, which are preconfigured software combining
data transformation, management, and access in a single package, usually with
business models, are also included in this functional market. The following are
representative vendors and products in this market:
Actuate (Actuate BIRT, Actuate e.Reports)
IBM (IBM Cognos 8 Business Intelligence, IBM Cognos TM1)
Information Builders (WebFOCUS InfoAssist, WebFOCUS ActiveReports)
Microsoft (Microsoft SQL Server Reporting and Analysis Services)
MicroStrategy (MicroStrategy 9)
Oracle (Oracle Business Intelligence Enterprise Edition, Oracle Essbase)
SAP (SAP BusinessObjects Business Intelligence, SAP BusinessObjects Crystal
Reports)
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Advanced analytics software includes data mining and statistical software (previously
called technical data analysis). It uses technologies such as neural networks, rule
induction, and clustering to discover relationships in data and make predictions that
are hidden, not apparent, or too complex to be extracted using query, reporting, and
multidimensional analysis software. This market also includes technical, econometric,
and other mathematics-specific software that provide libraries of statistical algorithms
and tests for analyzing data. Although statistics products vary in sophistication, most
provide base-level functions such as frequencies, cross-tabulation, and chi square.
This market also includes a specialized form of statistical software focused on
functional areas such as the industrial design of experiments, clinical trial testing,
exploratory data analysis, and high-volume and real-time statistical analysis. The
following are representative vendors and products in this market:
FICO (FICO Model Builder)
IBM (IBM SPSS Predictive Analytics Software)
KXEN (KXEN)
Oracle (Oracle Data Mining)
SAS (SAS Analytics, SAS Enterprise Miner)
TIBCO (TIBCO Spotfire S+)
Unica (Unica PredictiveInsight)
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Linux and Other Open Source environments include all operating systems
deployed aboard servers, workstations, minicomputers, and clients that are
based on Linux or other Unix-like open source operating environments. Typically,
this software is available both commercially with associated support and
maintenance costs and at little or no cost in source code form. Software of this
type is usually licensed under the Free Software Foundation's general-purpose
license (GPL) or other licensing that encourages free access to the source code
to these operating environments. Note that non-revenue-producing versions of
Linux are still classified as Linux operating systems by this taxonomy for the
purpose of allocating revenue-producing layered software by underlying
operating system.
Windows 32 and 64 include all operating systems that support the Win32 APIs
and Win64 APIs, including Microsoft's Windows 9x, Windows Me, Windows NT
Workstation, all versions of Windows NT Server, Windows 2000 Professional, all
versions of Windows 2000 Server, Windows XP Home, Windows XP Tablet PC
Edition, Windows XP Media Center Edition, Windows XP Professional, Windows
XP 64-Bit Edition, all versions of Windows Vista, and all editions of Windows
Server 2003, including the release 2 (R2) versions.
Information is collected about other operating environments but generally only
reported in the aggregate. These other operating environments include the
following:
i5 and OS/400
Hardware appliances
Methodology
Introduction
IDC classifies software markets in two ways functional and competitive.
Software is grouped into one of 80 mutually exclusive functional markets, which are
defined by the features, functions, and attributes of software and not the problem
being solved or the industry in which the software is used. In addition, IDC recognizes
a range of competitive markets that are combinations of entire functional markets or
combinations of fractions of functional markets. For more information about IDC's
software taxonomy, please refer to the Definitions chapter above.
The specific software market segment covered in this study can be defined in the
context of the following dimensions:
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market segments. The applications primary market is organized into eight secondary
markets, which are then subdivided into a further 33 markets (sub-segments).
This study covers certain functional markets within the applications primary market.
Within the secondary market of enterprise resource management (ERM) applications
are financial applications, human capital management, payroll, procurement, order
management, financial performance and strategy management applications, project
and portfolio management, and enterprise asset management. Within the secondary
market of supply chain management (SCM), applications are logistics, production
planning, and inventory management. Within the secondary market of operations and
manufacturing applications (OMA) are services operations management,
manufacturing, and other back office. Within the secondary market of customer
relationship management (CRM) are sales, marketing, customer service, and contact
center. Finally, within the application development and deployment primary market,
under the secondary market of data access, analysis and delivery are business
intelligence tools and analytical applications.
EAS Criteria
IDC considers a software application to be EAS if it is characterized by the following:
Minimum Functionality: The suite contains the following four core functions:
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Procurement
Order management
Over the years, IDC has built up excellent relationships with most major IT vendors,
and generally the input we receive is substantial. Normally, some level of sales
activity is provided, and complete records are often made available. In addition, IDC
regularly meets throughout the year with many of the major suppliers, and our data is
often used and examined during such exchanges.
IDC conducted interviews with all major EAS software providers for this study. IDC
also examined the product portfolios of numerous local value-added resellers,
software development companies, and IT services providers to determine other
locally developed enterprise applications that would potentially meet the definitional
criteria established for an integrated EAS software application package. While a
number of firms offer some type of enterprise management software, few field a truly
integrated package covering the four core functional categories mentioned above.
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IDC has found in-depth personal interviews an effective and efficient means of
undertaking market research in Central and Eastern Europe and the Middle East and
Africa. This methodological approach is essential for a variety of reasons, the most
important of which include explaining the concepts encompassed in market research,
as well as IDC's survey research activities, and having sufficient opportunity to
discuss more detailed information on vendor operations and strategies. In addition,
the state of telecommunications in the region leaves the researcher with little choice
but to visit a company in person.
IDC also evaluated secondary source literature, academic texts, and publicly
available government information.
It is important to keep in mind that no one source is dominant. In each case, IDC
analysts weigh all sets of inputs and use their judgment as to which sources are more
likely to be accurate. The weight of any one variable will change according to the
revenues being evaluated, our relationship with the supplier, the detailed data
available through public sources, and other relevant factors.
Notes on Forecasting
By definition, the tools used for measuring past activities are inevitably more precise
than those used to predict the future. No one is more aware than IDC of the perils in
trying to forecast any market five years out. IDC uses surveys, technology
assessment, country demographics, and economic data to develop forecasts. All of
these factors were important in this study.
IDC is often asked about its economic assumptions and their relationship to spending
trends in the technology marketplace being examined. IDC usually takes a neutral
approach to the economy, essentially building into its forecasts an expectation based
on historical rates of economic growth. Generally, if clients want to assume a
recession during a certain stretch of time, they should factor our numbers down
somewhat. Neutrality is also the goal in our treatment of areas such as inflation and
currency effects, which are assumed to be zero in our forecast work. In estimating our
shipment value numbers, for example, inflation is considered to be zero or
insignificant, and currency rates are assumed to be equivalent to the average rates of
the preceding year. No effort is made to factor out inflation in an attempt to show
"real" growth. Moreover, data is presented for currency levels that existed at each
period of time, and no attempt is made to factor out exchange rate effects.
Nonetheless, in the case of Central and Eastern Europe and the Middle East and
Africa, some weight must be given to economic and technological factors in projecting
expenditures on computing technology. The drastic reforms that have been
undertaken in countries of the region, and the profound influence of reform on future
economic growth rates, have forced IDC to factor more economic assumptions into
the forecasting analyses than is typically the case in our standard research. As can
be expected, this process introduces higher levels of uncertainty in the data than in
counties in which economic factors play a lesser role. Some important variables
considered in IDC's forecast analysis include:
Economic growth rates
Pace of privatization
Market reforms
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Synopsis
This IDC study provides a detailed overview of the Croatia market for integrated
enterprise application software (EAS) suites. EAS vendors tracked in this study
include SAP, Microsoft, IN2 Group, Laus CC, and Oracle.
This study provides detailed qualitative and quantitative information, analysis, and
forecasts that help to answer the following key questions:
What are the defining characteristics of the Croatian EAS market?
What is the current size of the EAS market in Croatia, and what is the forecast
potential of the market?
What is current spending on EAS software in Croatia in the various vertical
markets and end-user segments?
Who are the leading players in the EAS market in Croatia, and how are they
positioning themselves to capitalize on market potential?
Which industries are investing in EAS solutions, and how will future spending
patterns affect market development?
What are the defining characteristics of the EAS installed base in Croatia in
terms of vertical markets and end-user market segments?
How will the political and economic conditions specific to Croatia affect the
market?
"Both a lack of large projects and the financial crisis negatively influenced the
Croatian EAS market in 2010. Signs of recovery should become visible in 2011, and
to prepare for the expected market recovery EAS vendors should reevaluate their
marketing efforts and the strength of their sales channels, undertake necessary
restructuring and cost optimization, and acquire new skills." Associate Research
Analyst Ivan Juras, IDC Adriatics
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Copyright Notice
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Copyright 2011 IDC. Reproduction is forbidden unless authorized. All rights reserved.
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