Software revenues hold ground despite macroeconomic turmoil
Olemedia

Global software industry revenues show muscle despite macroeconomic turmoil as businesses continue to opt for automation to save costs and aid supply chains.
Geographically, EMEA saw 7.1% Y/Y software revenue growth in current currency ($USD) and 16.4% in constant currency in H1 2022. This compares to Americas' 16.4% Y/Y growth in both current and constant $USD and Asia/Pacific (including Japan) saw a 10.6% Y/Y growth in current currency and 18% in constant $USD.
Reason behind lower performance in EMEA is the inflationary impact of the weakening of Euro against USD. It also includes a substantial decline in Russian revenues, down 22.5% Y/Y in USD and down 18.5% in constant currency owing to the Russia-Ukraine war.
H2 software revenues in Russia could further be impacted as companies pull out of the land. Thomas Vavra, associate VP, European Software Data & Analytics commented, "Despite the many challenges facing the EMEA region, and Europe in particular, software demand remains strong. As was the case with Covid, adversity can be a driver of software spending as companies seek to remain competitive and agile."
The IDC Worldwide Semiannual Software Tracker expects EMEA region to grow 8.9% Y/Y in 2023. However, the longer run, four-year CAGR (compound annual growth rate) for period 2022-2026 is expected to reach 10.9%, which is a half percentage point below the Americas. 
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Stocks on radar: Microsoft (MSFT); Alphabet (GOOG); Oracle (ORCL); Meta Platforms (META); Adobe (ADBE); IBM (IBM); Salesforce (CRM); Intuit (INTU); Automatic Data Processing (ADP)