The Croatian enterprise application software (EAS) market, after stagnation in 2007, recovered in 2008, reaching $45.52 million for 27.3% growth in US dollars. In local currency, Croatia’s EAS market increased 17.2% year on year in 2008. According to a recent IDC study, the main drivers included the expanding economy and a few high-profile implementations. IDC expects that Croatia’s EAS market will expand an average of 4.2% annually over the next five years, to reach $55.8 million in 2013.

“Although Croatia’s EAS market recovered in 2008, it will not bypass the crisis,” says Karlo Pernek, Research Analyst, IDC Adriatics. “The crisis will hit all market segments hard, with somewhat milder impact on the telecommunications, finance, and government sectors. Vendors will have to take a new approach to customers. Standard marketing works well under normal economic conditions, which these are not. Vendors need to educate clients that EAS is not a cost but a cost cutter.”

Enterprise resource management (ERM) remained the most popular functional area of EAS in 2008, accounting for 67.9% of total revenue. Supply chain management was second in demand, constituting 12.2% of the market, while operations and manufacturing modules were third, with a 10.7% share.

The year 2008 proved extremely successful for international EAS vendors on Croatia’s market, in some cases with high double-digit revenue growth. SAP retained its lead, with 25.2% market share, followed by Microsoft, with 11.2% of the market. Oracle (6.7% share) jumped to third place in 2008, from sixth in 2007. Overall, international vendors captured 46.5% of the total revenue on the Croatian EAS market in 2008, up from 39.5% in 2007.

EAS spending by vertical markets witnessed only minor changes in 2008. The retail sector remained the top spender, accounting for 21.0% of total EAS spending. Process manufacturing was second, with 14.4% share, followed by wholesale, with 10.0% of total.

IDC’s Croatia Enterprise Application Software 2009-2013 Forecast and 2008 Vendor Shares (IDC #ER03R9) provides a detailed overview of the Croatian market for integrated EAS packaged software products. This study includes detailed qualitative and quantitative information, analyses and forecasts, as well as profiles of the top eight EAS vendors, including their EAS portfolios, their presence in individual vertical markets, and their largest contracts in 2008.