gives one's business the edge and organizations are
expected to spend more on Enterprise Software this year
deploying IT infrastructure in the enterprise, a CIO
makes some big decisions about software. Should the
platform be Windows NT/2000 or Unix/Linux? Which product
brands are the most suitable for various enterprise
applications? What about middleware? Then there is the
issue of tying in new (Web) applications with legacy
The survey shows that Enterprise Software is certainly
the key focus area for CIOs. However, the budget allocated
for this category is substantially lower.
Around 41 percent of respondents said Enterprise Software
is the main focus area for 2002-03. This puts Enterprise
Software in the top three areas of the current IT budget.
Some 79 percent of respondents say their requirement
for Enterprise Software has increased over last year.
The average rate of increase in Enterprise Software
requirement is 32 percent.
We have divided the Enterprise Software category into
seven infrastructure segments: RDBMS, Network Operating
System (NOS), Application servers, Backoffice applications,
Network/Enterprise infrastructure management solutions,
Testing & Troubleshooting tools, and Knowledge Management
these seven infrastructure segments, the main requirements
this year are for RDBMS, Application servers and Network/Enterprise
infrastructure management solutions. Application servers
comprise of Web server, Proxy server and Mail server.
For 2002-03 we see that 46 percent of companies need
RDBMS, 43 percent need Application servers and 40 percent
require Network/ Enterprise infrastructure management
solutions. This is followed by KM solutions (36 percent),
NOS (32 percent), Backoffice applications (26 percent),
and Testing & Troubleshooting tools (19 percent).
While the requirement across almost all areas is more
or less constant, the rising star is KM applications.
At present 31 percent of the respondents said they use
KM applications and 36 percent said they plan to go
in for a KM application this year.
A CIO knows that knowledge accumulated from market research,
customer interaction, individuals, or just past experience
can give his business the competitive edge, help avoid
past mistakes, reduce costs and training cycles, and
But knowledge is scattered aroundit lies in the
minds of employees, in filing cabinets, on hard disk
drives of various servers and desktops, on websites,
in e-mail boxes or just about any other data store.
In this state, knowledge is accessible to a few individuals
who are aware of its existence and location. But if
this knowledge was in a central repository, accessible
to everyone, it would certainly present the benefits
Most enterprises already have different versions of
some or all these enterprise applications. In 2002-03
spending is likely to be more on upgrades or for buying
The average funds allocated for Enterprise Software
has gone up from Rs 77 lakh to Rs 102 lakh. More specifically,
there is no change in spending on Enterprise Software
among companies who invest up to Rs 25 lakh in it. About
30 percent of the companies fall in this bracket.
While interest in Enterprise Software has increased,
this is certainly not a high area of investment, if
you go by averages. On an average, companies are spending
the lowest on Enterprise Software and Security compared
to other categories.
The budget allocation trends across various industry
segments indicate that all segments are giving high
priority to Enterprise Software.
Despite a minor increase in budget allocated this year,
Enterprise Software is the number one focus area for
This year the budget allocated for this category is
more likely to be spent on incremental upgrades or for
buying additional licenses. The new area of interest
is Knowledge Manageent solutions, and CIOs in both knowledge-based
as well as
traditional industries plan to go in for a Knowledge
Many companies from the IT/Telecom sector are going
to invest heavily in Enterprise Software.
Software is in the top three key areas of the
current IT budget
79 percent of respondents say their requirement
for Enterprise Software has increased over last
The main requirements this year are for RDBMS,
Application servers and Network/Enterprise infrastructure
Knowledge Management is the rising star. 36
percent said they plan to go in for a KM application
Average funds allocated for Enterprise Software
has gone up from Rs 77 lakh to Rs 102 lakh
5 benefits CIOs seek
in operational efficiency
Better customer service
Better data management
Better connectivity with regional offices