|By PR Newswire||
|February 14, 2013 08:02 AM EST||
LONDON, February 14, 2013 /PRNewswire/ --
The application software industry had a difficult 2012 as companies scaled back spending on technology due to the uncertain economic environment. However,the global economy is showing signs of stabilizing. This should boost business confidence and as a result spending on technology. For companies such as Germany-based SAP AG (NYSE: SAP) and U.S.-based Red Hat Inc. (NYSE: RHT),2013 could be a solid year. StockCall has posted free technical research on SAP AG and Red Hat which can be downloaded upon sign up at
Software Segments Hold Most Promise in 2013
CompTIA, a non-profit association for the Information Technology industry, said in its IT Industry Outlook 2013 that the worldwide IT industry this year is expected to grow at a rate of 3%. According to Tim Herbert, Vice President of Research at CompTIA, the fiscal cliff turmoil certainly clouded the 2013 outlook and technology has never been more important, however, persistent economic headwinds force many customer segments to remain conservative with their investments.
Still, the software industry holds the most promise in 2013, according to CompTIA. The industry association expects growth of 3% for software segments thus year. In a more optimistic scenario, growth for the software segment is expected to be 5% in 2013.
Improving Global Economy
While the global economy is far off from a complete recovery, recent data from the major economies has been encouraging. The Eurozone, which has been a drag on the global economy, is especially showing signs of stabilizing. In the U.S., the fiscal cliff deal ended a number of uncertainties. As the global economic outlook improves, businesses are expected to ramp up spending on technology. This augurs well for the likes of SAP and Red Hat. The free report on Red Hat Inc. can be downloaded by signing up now at
SAP's Record Full Year and Q4 Results
Despite a challenging macro environment, SAP posted record full-year and fourth quarter 2012 financial results. The company's co-CEOs, Bill McDermott and Jim Hagemann Snabe said that in 2012, SAP empowered best-run businesses to meet real-time consumer demands. The co-CEOs noted that the company invested in its flagship innovation SAP HANA and strengthened the industry's best portfolio in the cloud. They added that the momentum has never been stronger and the company is very well positioned to achieve its 2015 goals. Sign up and read the complimentary report on SAP AG at
For the year ended December 31, 2012, SAP reported a 14% increase in non-IFRS revenue. The company's non-IFRS software and software-related service revenue jumped 17% to 13.2 billion euros. Non-IFRS software and cloud subscriptions revenue jumped 21% to 5 billion Euros. In the fourth quarter of 2012, the company saw strong revenue performance in the APJ region.
Red Hat's Sees Strong Revenue Growth in Q3
Back in December, Red Hat reported its financial results for the third quarter ended November 30, 2012. The company's total revenue for the quarter rose 18% to $343.6 million, with subscription revenue rising 19%.
Jim Whitehurst, President and CEO of Red Hat, said that strong execution, industry leading solutions and the company's ability to deliver a compelling RIO to its customers, contributed to continued momentum and strong third quarter revenue growth in the face of a challenging global economic environment.
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