Growth at any cost: Line of business: Insights from TBR’s Software Vendor Benchmark

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T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

Growth at any cost: Line-of-business insights from TBR’s Software Vendor Benchmark

Technology Business Research Quarterly Webinar Series

Oct. 22, 2014

TBR

2 TBR Quarterly Webinar Series | 10.22.14 | www.tbri.com | ©2014 Technology Business Research Inc.

Insights from TBR’s 2Q14 Software Vendor Benchmark: Webinar Presenters

Elizabeth Hedstrom Henlin Senior Analyst, Software and Applications Email: [email protected] Twitter: @EAHHTBR

Andrew Smith Analyst, Software and Infrastructure Management Email: [email protected] Twitter: @AndrewSmithTBR

mailto:[email protected]


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Insights from TBR’s 2Q14 Software Vendor Benchmark: Webinar Agenda

• Insights from TBR’s 2Q14 Software Vendor Benchmark

Current Market State

• Insights from TBR software market coverage:

• C-Suite and line-of-business (LOB) expectations

• Provisioning for industry-specific workloads

• Demand for agility and flexibility

2015 Market Outlook

TBR


Current State of the Software Market Landscape

TBR


Install base defense and maintenance revenue continue to drive software vendor revenue growth, underscoring the need for reinvention

Insights from TBR’s 2Q14 Software Vendor Benchmark: Market Overview

Addressing demand for BI applications is creating new growth paths for vendors to expand wallet share with innovative, end-to-end solutions or heterogeneous disruptors

SLIPPING

LAGGARDS

LEADERS

IMPROVING

SOURCE: TBR AND COMPANY DATA

NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.

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Note: Sphere size reflects volume of revenue.

Salesforce.com, NetSuite and

Red Hat do not appear on the

graph because they do not

report license revenue.

Despite year-to-year gains, license continues to lag behind other segments in revenue growth due to recurring cloud subscription sales

Insights from TBR’s 2Q14 Software Vendor Benchmark: Key Trends

SLIPPING

LAGGARDS

LEADERS

IMPROVING

Leaders use industry-specific applications and business intelligence to capture customer spending with solutions



TBR


Businesses will continue to migrate their IT environments to cloud infrastructures throughout CY14, sustaining services revenue growth

SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES

Insights from TBR’s 2Q14 Software Vendor Benchmark: Key Trends

Software vendors are adjusting their service portfolios to transformational cloud and on-premises integration capabilities to align with customer expectations


SLIPPING

LAGGARDS

LEADERS

IMPROVING

TBR


TBR Outlook for 2014: Software Vendor Analysis

TBR


C-Suite and LOB expectations: Customers want solutions-oriented providers and trusted advisors with expertise spanning multiple industries.

Solution provisioning for industry-specific workloads: Customer demand for analytics requires tighter integration between industry applications and associated databases.

New customer demands focused on agility and flexibility: Demand for on-premises software and cloud services requires simpler provisioning and management capabilities that can integrate and adapt quickly.

Extending industry-centric application portfolios and management of heterogeneous IT environments will help vendors win LOB buyers

Insights from TBR’s 2Q14 Software Business Quarterly Reports: Market Outlook

Software Vendor Outlook for 2014

TBR


Growing influence of LOB buyers in the IT purchasing process is driving demand for a more comprehensive applications ecosystem

Insights from TBR’s Quarterly Reports: Covered Vendor Highlights – Software Technology

• TBR believes embedded business intelligence (BI) functionality will be a key differentiator as integrations between business analytics applications and databases continue to evolve over the next 48 months.

• Customer adoption of SAP HANA is critical to the success of SAP’s Run Simple strategy. TBR believes SAP will leverage Control Center to ease and accelerate customer migration to SAP HANA, reducing support post-deployment.

• TBR believes sales of Oracle’s Database 12c have lagged behind expectations, as customers waited to migrate projects until the in-memory option was generally available and market-tested. Customers of Database 12c with in-memory functionality were high-profile attendees and presenters at Oracle OpenWorld 2014 in September, aiding Oracle’s efforts to jump-start sales for the rest of CY14.

Highlighted Case Studies: 2Q14 TBR Software Business Quarterly Vendor Reports

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The cross-market focus on industry applications foreshadows a significant vendor battle for customers’ wallets

• IBM became a reseller of Apple’s iPhone and iPad product lines, targeting enterprise customers with the inclusion of an industry-specific solution of the customer’s choosing on each device.

• SAP’s Industry Cloud, IBM’s Smarter Suites and Oracle’s Global Business Units are evolutions of longtime industry expertise, with new cloud-delivered functionality a key point to note for customers. Applying this expertise to new consumption models, including mobility, will position longtime leaders to successfully fend off “born on the cloud” competitors.

• In April Salesforce.com announced an Industries Business Unit that will provide cloud solutions and mobile applications to six specific industries: financial services, healthcare, retail, communications, public sector and automotive.


Insights from TBR’s Quarterly Reports: Covered Vendor Highlights – Applications

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Systems management vendors that can establish credibility in handling heterogeneous customer environments will win in CY15

• A clear road map bridging the gap between a customer’s existing management systems and next-generation technologies is essential for differentiation in CY15.

• In July CA Technologies announced the divestiture of its ARCserve business. The divestiture helps streamline CA’s product portfolio and frees up essential resources for CA to evolve its systems management portfolio to embrace cloud deployments.

• In May Symantec announced a series of new products and services for advanced threat protection (ATP). Symantec’s MSS-ATP integrates security data from Symantec-protected endpoints and third-party network security products to detect threats in customer environments faster. The solution positions Symantec to capture more services-led, cloud-based security spending.


Insights from TBR’s Quarterly Reports: Covered Vendor Highlights – Systems Management

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Projections

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Incremental shifts in core business models and portfolios will position leaders and laggards to take new paths to customer acquisition

Expanded portfolios

targeting high-growth

markets such as cloud and

mobility

Sales and channel

strategies that present a

compelling narrative for LOB buyers

Revenue and growth opportunities for

additional enterprise software sales at

competitors’ expense

2015 Projections: Vendors will develop road maps to aligning with new customer demands

Insights from TBR’s 2Q14 Software Vendor Benchmark: Market Projections

TBR


Coming Soon:

TBR Benchmark Portfolio Expansion

TBR


TBR evaluates the enterprise software landscape across three market segments and multiple subsegments

Databases

Applications

Software Technology

Systems Management

Business Applications

Business Intelligence

Operating Systems

Middleware

Virtualization

Development and Test

Management and Orchestration

Security and Governance

Risk

Compliance

Backup

Recovery

Archive

eDiscovery

Insights from TBR’s 2Q14 Software Vendor Benchmark: Research Preview

TBR


TBR’s Software Vendor Benchmark covers critical players in all software segments; new benchmarks will build on that expertise and drill down

Applications Software Vendor Benchmark


Databases

Applications

Software Technology

Systems Management

Business Applications

Business Intelligence

Operating Systems

Middleware

Virtualization

Development and Test

Management and Orchestration

Security and Governance

Risk

Compliance

Backup

Recovery

Archive

eDiscovery

Infrastructure Management Software Vendor Benchmark

TBR


TBR’s Applications Software Vendor Benchmark covers business applications and BI market makers as well as growth opportunities

Vendors included in Benchmark Metrics Segments Table of contents


Company Views Revenue and Profit Geographic Revenue Growth Investment and Expense Revenue per Employee Expense per Employee Segment Views Market Revenue Growth Vendor Revenue and Profitability

Actuate Adobe Autodesk Citrix Compuware EMC HP IBM Informatica Microsoft NetSuite OpenText

Oracle Progress Qliktech Sage Salesforce.com SAP SE Tableau Teradata TIBCO TOTVS

Overall License Maintenance Professional Services Applications Market Business Applications Business Intelligence Geographies Americas Europe, Middle East and Africa Asia Pacific

Client delivery of TBR’s Applications Software Vendor Benchmark includes a data file that reflects vendors’ applications (business applications and/or business intelligence LOB) overall revenue, expense and

profitability as well as comparable insights around applicable lines of business.

Executive Summary Key Findings and Trends Scenario Discussion Revenue and Margin Leaders Resource and Go to Market Alliances and Acquisitions Segment View Geographic View Data Models Revenue Segments Geographic View Efficiency and Growth Productivity Metrics Investment Metrics Benchmark Definitions

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TBR’s Infrastructure Management Software Vendor Benchmark shows trends in software technology and systems management markets

Vendors included in Benchmark Metrics Segments Table of contents


CA Technologies Check Point Citrix Commvault Compuware EMC HP IBM Informatica Microsoft Open Text

Oracle Progress Red Hat SAP SE Symantec Teradata TIBCO Trend Micro VMware

Overall License Maintenance Professional Services Infrastructure Software Market Segments Software Technology Systems Management Geographies Americas Europe, Middle East and Africa Asia Pacific

Client delivery of TBR’s Infrastructure Management Software Vendor Benchmark includes a data file that reflects vendors’ infrastructure management (software technology and/or systems management LOB) overall

revenue, expense and profitability as well as comparable insights around applicable lines of business.

Company Views Revenue and Profit Geographic Revenue Growth Investment and Expense Revenue per Employee Expense per Employee Segment Views Market Revenue Growth Vendor Revenue and Profitability

Executive Summary Key Findings and Trends Scenario Discussion Revenue and Margin Leaders Resource and Go to Market Alliances and Acquisitions Segment View Geographic View Data Models Revenue Segments Geographic View Efficiency and Growth Productivity Metrics Investment Metrics Benchmark Definitions

TBR


Questions?

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Insights from TBR’s 2Q14 Software Vendor Benchmark: Contact Information

James McIlroy Vice President of Sales Email: [email protected] Telephone: 603.929.1166

Twitter: @TBRinc SlideShare: www.slideshare.net/TBR_Market_Insight YouTube: www.youtube.com/user/TBRIChannel LinkedIn: https://www.linkedin.com/company/technology-business-research

Geoff Woollacott Engagement Manager and Senior Analyst Email: [email protected] Twitter: @gwoollacott

Andrew Smith Analyst, Software and Infrastructure Management Email: [email protected] Twitter: @AndrewSmithTBR


https://twitter.com/TBRinc

http://www.slideshare.net/TBR_Market_Insight

http://www.youtube.com/user/TBRIChannel

https://www.linkedin.com/company/technology-business-research







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Syndicated Research Coverage by Vendor Segment

TBR Software Practice Syndicated Coverage

Software Vendor Reports (Software Business Quarterly)

Benchmarks, Market Landscapes and Research Programs (Benchmark XLS data also available)

• CA Technologies • Dell Software* • HP Software • IBM Software • Microsoft Corp. • Oracle Corp. • Red Hat • SAP SE • SAS* • Symantec • VMware

• Applications Software Vendor Benchmark • Infrastructure Management Software Vendor Benchmark • Business Intelligence Software Vendor Benchmark*

(includes BI business of select Software Business Quarterly vendors and additional pure-play firms)

• Business Intelligence Software Buying Behavior Program

*Semiannual publication **Annual publication

SourceIT — IT Customer Segment Reports Insight and in-depth study results on N. American and large enterprise budgeting, buyers and competitors across workloads

• SourceIT Business Applications** • SourceIT Consulting and Systems Integration for Business

Applications**

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