Database Storage and Backup Software Publishing

Business for Sale Industry Economics

$60,089,000,000

Revenue

8.56%

Projected CAGR

2002 - 2021

Historical

2021 - 2027

Projection

5.28%

CAGR

$18,447,000,000

Profit

Quick Scroll

Summary

The Database Storage and Backup Software Publishing industry comprise operators that develop and distribute database management, storage and remote-backup software systems.

Database software serves a key purpose within a company’s information technology infrastructure, enabling operational data analysis to supplement well-informed decisions.

The industry performed well over the five years to 2021, as surging private investment in computers and software stimulated demand. Consumers have also become more alert to the benefits of industry products. The industry’s primary product segment has gradually become a necessity for many-core markets over the past five years.

Altogether, industry revenue has grown at an annualized rate of 5.8% to $60.1 billion over the five years to 2021, including the growth of 10.9% in 2020 despite lower private investment and consumer confidence due to the COVID-19 (coronavirus) pandemic. Revenue is expected to rise 2.6% in 2021.

Performance

Operators in the Database, Storage and Backup Software Publishing industry primarily develop and distribute database management, storage and remote-backup software systems.

Operators may also provide assistance during the installation and maintenance stages, in addition to developing middleware, which acts as an intermediary between databases and business analytics software.

The industry does not include hardware manufacturing, operating system publishing or business analytics software publishing.

Outlook

The Database, Storage and Backup Software Publishing industry is anticipated to encounter more stable, maturing growth over the five years to 2026.

Corporate profit levels are anticipated to increase slowly, which will encourage greater investment in information technology (IT) infrastructure from business users.

Operators will target small- and medium-sized businesses that may not have integrated industry software with their operations yet.

Most large businesses have already benefited from extensive database and business analysis software platforms since they have the budgets and staff levels to pursue such infrastructure.

As industry software becomes more innovative, cost-effective and user-friendly, industry products will likely increasingly be used by small businesses.

Furthermore, a growing sense of ubiquity is expected to incentivize adoption in new users as they keep up with ongoing trends in their own respective industries.

These trends will likely result in robust industry growth, with industry revenue expected to increase at an annualized rate of 5.7% to $79.4 billion over the five years to 2026.

webscale datacenter woman laptop

Industry

Operators in this industry develop and distribute database management, storage and remote-backup software systems.

Operators may also assist in the installation and maintenance of these software systems.

This industry further includes the development of middleware, which acts as an intermediary between databases and business analytics software.

The industry does not include hardware manufacturing, operating system publishing or business analytics software publishing.

Investment

The Database, Storage, and Backup Software Publishing sector is a low-capital-intensive business. According to research, for every $1.00 spent on labor, the average operator in the business will invest $0.12.

The majority of software firms require just a small amount of capital equipment, such as servers and computers, and software is typically an intangible commodity.

Software developers almost never sell tangible items and rely on highly competent personnel. (Those who do prefer to have such task outsourced).

Employees in this business earn an average compensation of about $170,000 in 2021, accounting for 39.2 percent of revenue.

Volatility

The average absolute change in revenue growth for the Database, Storage, and Backup Software Publishing industry for the five years through 2021, according to research, was 4.8 percent.

This refers to revenue volatility that is moderate to low. Price variations and variations in the number of industrial products and services requested drive volatility in this business.

The low rates of industry-relevant price increase suggest that revenue volatility is mostly dictated by demand variations. Prior to the year 2020, the industry had a low degree of revenue volatility.

The sector is predicted to see significant year-over-year growth in sales in 2020. The sector is predicted to have a significant single-year gain in sales in 2020, adding to the industry’s volatility. The COVID-19 (coronavirus) pandemic is primarily to blame for this.

Because software is a capital good for firms, it is susceptible to severe investment cycle volatility.
Industry businesses, on the other hand, have boosted subscription offers, allowing users to pay a monthly charge for a service that generally includes free software upgrades and support.

For enterprises, data management and access to server goods are becoming increasingly crucial, resulting in more steady demand for industrial products.

To secure the safety and dependability of their data, modern enterprises store huge volumes of data digitally and require sophisticated storage and backup infrastructures.

Furthermore, as organizations strive to uncover patterns and linkages in massive volumes of data, the relational database software will become more important.

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