Despite the fact that Microsoft Corporation (NASDAQ:MSFT) has not been as successful as the company would like in the tablet and smartphone markets, it can always fall back on its bread and butter: software.
With that in mind, Microsoft knows that it needs to branch out into new areas to ensure its success moving forward.
However, and fortunately for Microsoft Corporation (NASDAQ:MSFT), it appears that the software market is going to grow over the next few years.
IDC is reporting a “worldwide software market forecast to continue on modest growth trajectory through 2017.”
The key word to takeaway from that quote is modest. While the software market may not be set to explode, this is good news for the likes of Microsoft and its competition.
Here are some stats from the article, lending some insight as to where the software market is coming from and where it is going to end up in the years to come:
“For 2012, the worldwide software market grew 3.6% year over year, less than half the growth rate experienced in 2010 and 2011. IDC believes these results mark the beginning of a more conservative period of growth. The forecast growth rate for 2013 is 5.7% while the compound annual growth rate (CAGR) for the 2012-2017 forecast period is 6.3%.”
As you can see, despite the fact that IDC is predicting growth through 2017 it is also noting “a more conservative period of growth” when compared to where things have stood in the recent past.
The question is: will Microsoft Corporation (NASDAQ:MSFT) be able to take advantage of this growth, or will the company suffer as a result of smaller gains throughout the market as a whole?
One way that the company can take advantage is to focus on emerging markets, as opposed to those that have already peaked:
“On a regional basis, the emerging economies will experience stronger growth than in mature economies. The average 2012-2017 CAGR for Asia/Pacific (excluding Japan), Latin America, and Central Eastern, Middle East, and Africa (CEMA) is 8.8% while the average CAGR for the mature regions – North America, Western Europe, and Japan – is 5.0%.”
What do you think about this report from IDC that could impact Microsoft Corporation (NASDAQ:MSFT)? Do you believe the powerful software company is in position to grow through 2017 or will its lack of expansion into other markets hold it back?