The business software market in New Zealand and Australia will take off in the next three to five years, driven by high demand across all software categories, analysts Ovum have predicted.

In a new report, Ovum predicts the market will be worth US$7.3 billion in 2015, representing a compound annual growth rate of 8.4%. The markets for business intelligence, process management, ERP, and security software are all expected to grow.

Ovum analyst Sandeep Mishra says ANZ has been among the frontrunners in technology adoption for the APAC region, and represents the second-largest market in the area after Japan.

"With increasing data complexity and rising security concerns brought about by the growing number of IT platforms, enterprises across ANZ are expected to invest more in information management and security solutions,” Mishra says.

Demand for software-as-a-service products will be particularly high, the report predicts.

"ANZ is one of the largest markets for SaaS-based solutions in Asia-Pacific, and [the segment is] expected to grow faster than the market for on-premise solutions.”

Software vendors should utilize their channel partners and online sales to take advantage of the growth, Mishra says, particularly by targeting SMBs.