Applications as a Path to Software Vendors’ Revenue Growth

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TECHNOLOGY BUSINESS RESEARCH, INC.

Applications as a Path to Software Vendors’ Revenue Growth

Insights from TBR’s Software Vendor BenchmarkTechnology Business Research Quarterly Webinar Series

Oct. 3, 2013

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2 TBR Quarterly Webinar Series | 10.3.13 | www.tbri.com | ©2013 Technology Business Research Inc.

Insights from TBR’s Software Vendor Benchmark: Webinar Presenters

Elizabeth Hedstrom HenlinEnterprise Software [email protected]@EAHHTBR

Stuart WilliamsDirector, TBR’s Software and Cloud [email protected]@s2_williams

mailto:[email protected]


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Insights from TBR’s Software Vendor Benchmark: Webinar Agenda

• Insights from TBR’s Software Vendor Benchmark

Market State

• Insights from TBR coverage of the software market:• How are leading vendors expanding applications

market reach through:• Alliances• Vertical Applications• Portfolio Interoperability

2014 Vendor Outlook

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TBR Projections:CY14 Enterprise Software Market Opportunity

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Growth:Customer acquisition via

partner-led sales or opportunity to sell to partners’ customers

2HCY14 Revenue Opportunity:Profitable Customer Acquisition

Ally vs. Develop:If costs to build features impact margin, carefully

choose new (and nontraditional) allies.

1HCY14 Revenue Opportunity:

Install Base Defense

Margin:Sell new offerings as part

of flagship product to maximize margin.

Software vendors that incorporate cloud delivery and value-add features into core applications and platforms are best positioned for CY14 growth

TBR Projections: 2014 Enterprise Software Vendor Landscape

Insights from TBR’s Software Vendor Benchmark: 2014 Outlook

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2H13 revenue growth leaders will monetize current market momentum through share-of-wallet sales

Insights from TBR’s Software Vendor Benchmark: Landscape Overview

Applications vendors and applications delivery partners are positioned to drive sales of products linked to business and vertical applications in 2H13

SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATESNOTE: SIZE OF BUBBLE REPRESENTS SCALE OF REVENUE WITHIN COVERED LANDSCAPE.

SLIPPING

LAGGARDS

LEADERS

IMPROVING

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License revenue growth leaders are tying applications optimization and management to core value propositions to create market opportunities

Insights from TBR’s Software Vendor Benchmark: Key Trends

Vendors’ 2H13 challenge remains tying core businesses to adjacent market segments that can create share of wallet opportunities for revenue growth


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Profitability remains a high priority for software vendors, as it demonstrates competitive traction relative to peers

Insights from TBR’s Software Vendor Benchmark: Key Trends

Margin growth leaders are tightly managing costs to stabilize profitability — keeping at least one consistent growth story up front with customers and Wall Street


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TBR Outlook for 2014:Software Vendor Analysis

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Vertical Applications: Integrated industry-oriented solutions to reach adjunct addressable markets

Interoperability: Increase consumption and share-of-wallet sales through portfolio integration.

Customers’ desire for growth is unabated by spending restraints, placing vendors with broad portfolios closest to being seen as trusted advisors

Insights from TBR’s Software Business Quarterly Reports: 2014 Outlook

Software Vendor Outlook for CY14

Alliances: Cooperation to migrate traditional software vendors into new segments

SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES

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Winning vendors are establishing partnerships that facilitate growth of core businesses while extending customer and partner ecosystems


Insights from TBR’s Software Vendor Benchmark: Covered Vendor Research Highlights

• Oracle and Microsoft will each realize increased brand profile and cloud sales through their partnership as the firms collaborate to optimize cloud portfolio integration, certification of each firm’s infrastructure, and targeted reselling of select offerings to Oracle’s and Microsoft’s install bases.

• With the recent announcement of a nine-year strategic alliance to integrate respective cloud offerings from Oracle and Salesforce.com, Oracle will position applications and database offerings to a potential selling base in excess of 100,000 customers.

Highlighted Case Studies — TBR Software Business Quarterly Vendor Reports

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A vertically targeted go-to-market strategy will help traditional vendors differentiate and expand the addressable market of existing solutions



• SAP’s increasing attention to verticals will increase the company’s market traction and will escalate market engagements with long-time competitor Oracle, an established vertical-oriented vendor with Oracle’s Global Business Units division.

• SAS will invest in monetizing best practices from its deep install base to increase vertical solutions, particularly customer intelligence capabilities and fraud management solutions, in response to escalating competitive investment in the BI and analytics market.


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Software vendors will integrate portfolios to provide seamless end-user experiences, driving install base upselling and cross-selling opportunities



• The deep integration of Red Hat’s diverse portfolio (with Linux, middleware and virtualization tied together) will increase Red Hat’s appeal to current and potential partners.

• In June HP introduced HAVEn, a BI and analytics platform that encompasses components from HP’s software (including Autonomy, Vertica and ArcSight), hardware and professional services portfolios.

• IBM Software’s focus on simplifying solutions and reducing barriers to adoption for line-of-business users, as exemplified in its analytics portfolio, will help deliver on IBM’s new value proposition, “Easy, Fast and Smart.”


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Questions?

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Elizabeth Hedstrom HenlinEnterprise Software [email protected]@EAHHTBR

Stuart WilliamsDirector, TBR’s Software and Cloud [email protected]@s2_williams

For further information, please contact:

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About TBR

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