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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
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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
TBR
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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
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Current State of the Software Market Landscape
TBR
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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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SOURCE: TBR AND COMPANY DATA
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
SOURCE: TBR AND COMPANY DATA
NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.
TBR
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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
NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.
SLIPPING
LAGGARDS
LEADERS
IMPROVING
TBR
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TBR Outlook for 2014: Software Vendor Analysis
TBR
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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
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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
TBR
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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
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.
TBR
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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.
Highlighted Case Studies: 2Q14 TBR Software Business Quarterly Vendor Reports
Insights from TBR’s Quarterly Reports: Covered Vendor Highlights – Applications
TBR
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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
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.
TBR
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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.
Highlighted Case Studies: 2Q14 TBR Software Business Quarterly Vendor Reports
Insights from TBR’s Quarterly Reports: Covered Vendor Highlights – Systems Management
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Projections
TBR
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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
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Coming Soon:
TBR Benchmark Portfolio Expansion
TBR
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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
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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
Insights from TBR’s 2Q14 Software Vendor Benchmark: Research Preview
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
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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
Insights from TBR’s 2Q14 Software Vendor Benchmark: Research Preview
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
TBR
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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
Insights from TBR’s 2Q14 Software Vendor Benchmark: Research Preview
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
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Questions?
TBR
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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
TBR
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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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