Mobility and Cloud Computing to Be Key Drivers in APEJ Middleware Market

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The Application Deployment Software (ADS) market in the Asia Pacific excluding Japan (APEJ) region grew 8% year on year to USD641 million in the first half of 2012. It is expected to achieve a compound annual growth rate of 7.6% over the next five years (2012 2016) according to the latest IDC Asia Pacific Semiannual Application Deployment Software Tracker.

"Inevitably, the weakening economies in the United States and Europe have impacted the APEJ region, with companies heavily dependent on export businesses the worst hit among all. Various economic statistics have also indicated signs of slowdown in the key growth engines of the region - China and India," says Chris Zhang, Senior Market Analyst for IDC's Asia/Pacific Application Deployment Software Research.

Generally, most of the companies are taking a more conservative approach in their technology investments while some others are going the opposite direction, pumping in more dollars to stay ahead of the pack and be ready in full gear when the economy resumes. "This is clearly a 'fight or flight' situation, depending on how organizations view the current situation - whether opportunistic or negative." Chris adds.

For instance, IDC observes that despite challenging times, some manufacturers continue to invest in Managed File Transfer (MFT) and B2B integration solutions to enhance collaboration and communication capabilities among supply chain members. Business Process Management Software (BPMS) is also another hot area where organizations across all industries see as strategic investment that helps to optimize business processes and stay agile in volatile market conditions. In fact, middleware solutions are often considered by many companies as the backbones and enablers of an agile organization.

On the technology front, IDC finds the increasing adoption of mobility and cloud computing have stimulated the demand for mobile application platforms, integration and messaging solutions, and cloud-enabling middleware or appliances. Security remains as one of the top concerns as organizations find themselves operating in increasingly complex IT environments. "The ability to centrally manage and to provision applications in a secured manner on disparate platforms will be critical here," Chris further highlights.

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