Latin America 2008 Enterprise Applications Market OverviewSoftware Market Trends

1. Latin America 2008 Enterprise
Applications Market Overview
Software Market Trends
IDC Latin America
Presentation prepared for:
Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.

2. Agenda
Market Overview 2009-2010
Market Analysis
Competitor’s Analysis
Follow The Money
Conclusions For The Studies
© 2009 IDC 2

3. Agenda
Market Overview 2009-2010
Market Analysis
Competitor’s Analysis
Follow The Money
Conclusions For The Studies
© 2009 IDC 3

4. Agenda
Market Overview 2009-2010
Market Analysis
Competitor’s Analysis
Follow The Money
Conclusions For The Studies
© 2009 IDC 4

5. Addressable Markets: ERM still remains as the
biggest market
Applications Addressable Market
Latin America, 2008
25%
CRM Applications
20.21% growth
SW Revenue (% of Growth) Year 2007-2008
20%
Enterprise Resource Management
Applications
Operations & Manufacturing 15.99% growth
15% Applications
12.21% growth
Supply Chain Management
Applications
10% 10.69% growth
5%
0%
0% 10% 20% 30% 40% 50% 60% 70%
Share as a % of Applications Market for 2008
© 2009 IDC 5

6. SCM
“The continued need to automate supply- and
demand-side business processes”
Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.

7. SCM Forecast
Latin America SCM Applications Market Forecast (US$M) & Annual Growth 2007 – 2013
Assumptions
The market for supply chain solutions has
entered an era in which ERP vendors
and smaller niche vendors rule.
Today, customers want to integrate the
operation of supply chains with US$ Million
Growth (%)
everything else they do, which weakens $400
$344
20%
the case for larger standalone $320
$309
$281 15%
implementations. $245 $259
$237
11% 11%
$240 $215
8% 10%
The economic uncertainly will depress 10%
$160 6%
spending on SCM applications.
Companies would try to manage their 3% 5%
$80
operations with the same resources
$0 0%
they have right now.
2007 2008 2009 2010 2011 2012 2013
IDC expects that the current pressure on
Market Size (US$ M) Growth (%)
most companies to reduce costs will
lead to new initiatives to outsource tasks
and processes and thereby increase
supply chain complexity. This increased
complexity will bolster the case of
investments in packaged SCM
applications.
© 2009 IDC Source: IDC Latin America Semiannual SCM Applications Tracker 2008 7

8. SCM applications are also perceived
as a way to reduce costs
IT Solutions Current Adoption in LA
SCM Market
Internal
Development
28%
100% Custom
Don't have it
External
48%
Develop
8%
Packaged
Outsourcing Software
1% licenses/
upgrades
15%
© 2009 IDC Source: IDC LA IT Investment Trends 2009 (N:647) 8

9. SCM Applications Market Share
Latin America Supply Chain Management Applications Market Share by Vendor
(% of Revenue) 2007 – 2008
SAP AG TOTVS Oracle Corp. Competitive Highlights
Infor Neogrid SAS Institute
Others SAP focused on improving SCM
integration with demand
planning, enhancing also the
20.5% 19.7%
support of supply chain
2.89% 3.05% communications and
2.84% 3.35%
4.3% 3.8% collaboration, and compliance with
8.1% 9.0% regulatory requirements.
Oracle announced an upcoming
20.9% 19.7%
product, Oracle Rapid Planning, one
of the newest components of its
Value Chain Planning offerings. The
focus is to provide an holistic
40.5% 41.4% approach from demand planning to
advanced SCM.
2007 2008
© 2009 IDC Source: IDC Latin America Semiannual SCM Applications Tracker 2008 9

10. SCM Applications Market by Segment and
Vertical Industry
Latin America Supply Chain Management Applications Market Share by Company Size &
Vertical Industry (% of Revenue) 2007 – 2008
US$ Million 2007 2008 Growth 2008-2007 Growth %
Both, large and medium
$140 25%
20.7%
$120
13.2%
20% sized companies think that
$100 11.8% 15%
closer collaboration with
$80 10%
$60 5% suppliers is seen as an
-2.6%
$40 -4.7% 0% important route to improving
$20 -5%
$0 -10%
supply chain responsiveness
Large Business Medium Small Business Government Education and decision-making times.
(500+) Business (100- (10-99)
499)
US$ Million
2007 2008 Growth 2008-2007 Growth %
$120 59.4% 70%
Manufacturing and $90
60%
50%
1.9% 24.0% 40%
Commerce are expected to $60 16.6% 20.7%
12.6% 30%
14.5% 3.9% 20%
keep the SCM market up $30 -2.7% 10%
0%
$0 -10%
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© 2009 IDC Source: IDC Latin America Semiannual SCM Applications Tracker 2008 10

11. Essential Guidance – SCM Market
Highlight Recommendation
Many companies are pointing out the Offer accelerated implementation tools,
need to reduce long-term projects. and greater/better usage and adoption of
installed solutions, while recruiting
specialist partners with local and
industry-specific knowledge to ensure
successful implementations.
SCM applications are also perceived as Strengthen the cost-saving element of
a way to reduce costs related to Oracle's value proposition. The existing
inventory levels, personnel, and waste. ROI framework should be extended to
show concrete savings.
Certain supply chain issues remain, Highlight the importance of
despite the current economic crisis. enhancements in the supply chain
processes. These are necessary
measures to gain competitiveness to
stand out.
© 2009 IDC 1111

12. Contact Information
Please send your comments to:
Mariana Zamoszczyk (Applications)
mzamoszczyk@idc.com
Alejandro Florean (SW Director)
aflorean@idc.com
© 2009 IDC 12