Worldwide software sales top $267bn as UK market founders

Worldwide software revenue is set to jump nearly 10 per cent this year to surpass $267bn. However, the UK market is underperforming compared to the rest of the world, according to analyst firm Gartner.

Fabrizio Biscotti, Gartner analyst, told V3.co.uk that the UK has seen less enterprise software sales recently because the government has chopped so many of the country's IT projects.

"Sales in the financial services sector are still ahead of the game, but they are not enough to steer the whole country," said Biscotti.

However, Biscotti said the UK was still seeing software sales above the European average, but he suggested that the UK's sluggish performance was having a negative impact on Europe's software market.

"Because 25 per cent of the software market in Western Europe comes from the UK, it means the worst-than-expected performance of the UK is shaping the Western market," he said.

He added that Europe's enterprise software sales were also slowing down as more businesses opt for open-source technology and cloud deployment models, which are cheaper alternatives to traditional arrangements.

"The two areas are becoming really valid alternatives for proprietary applications," said Biscotti. "The SME market in particular is looking for lower cost alternatives to keep going."