tbr software business quarterly vendor performance review
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TBR
TECHNOLOGY BUSINESS RESEARCH, INC.
TBR’s Software Business QuarterlySM
Research Highlights and OutlookTechnology Business Research Quarterly Webinar Series
Sept. 26, 2012
TBR
2 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Software Business Quarterly Research Highlights and Outlook: Webinar Presenters
Elizabeth Hedstrom HenlinAnalyst, Software Practiceelizabeth.hedstromhenlin@tbri.com@EAHHTBR
Stuart WilliamsDirector, TBR’s Software Practicestuart.williams@tbri.com@s2_williams
TBR
3 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Go to Market (GTM): Target new partnerships and acquisitions to rapidly expand GTM routes.
Corporate Reinvention: Invest in areas needed to drive CY13 success in product and GTM.
With cloud and mobility continuing to transform software consumption, enterprise software vendors are “holding the line” with three key tactics
SBQ 2Q12 Research Highlights and 2012 Outlook
Software Vendor Trends for 2012
Product Portfolio: Expand capabilities, attaching to high-interest trends and satisfying the install base.
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR
4 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
TBR’s Software Business Quarterly (SBQ) reports deliver unique insight and value through in-depth analysis in a concise, consumable format TBR reports are unique for their deep, holistic analysis of leading vendor businesses.
Software Business Quarterly Research Highlights and Outlook: Webinar Overview
TBR
5 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
TBR’s Software Business Quarterly covers the vendors that make and shape enterprise software markets
Software Business Quarterly Research Highlights and Outlook: Webinar Overview
TBR Software Business Quarterly Portfolio
Vendor Reports:
• BMC Software
• CA Technologies
• HP Software
• IBM Software
• Microsoft Corp
• Oracle Corp.
• Red Hat, Inc.
• SAP AG
• SAS Institute, Inc. (semiannual)
• Symantec Corp.
• VMware, Inc.
Software Vendor Benchmark (29): Oracle Corp.
IBM Software
VMware
Microsoft
SAP
Symantec
BMC
CA
HP Software
Salesforce.com
Adobe
Autodesk
Check Point
Citrix
CommVault
Compuware
EMC
Informatica
Intuit
JDA
NetSuite
Open Text
Progress Software
Quest Software (Dell)
Red Hat
Sage
Software AG
Tibco
Trend Micro
TBR
6 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
SBQ 2Q12 Research Highlightsand 2012 Outlook
TBR
7 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Vendors in TBR’s Software Vendor Benchmark are responding to sluggish business:• Average year-to-year corporate revenue growth below
8%, down from almost 18% in 2Q11• Average year-to-year license revenue growth below 3%,
down from 18% in 2Q11 Overcoming these declines demands product-led successes – the first best practice TBR noted for 2Q12.
To jump-start revenue growth, particularly in license sales, leaders are taking existing portfolio strengths and reinventing them for new segments
SBQ 2Q12 Research Highlights and 2012 Outlook
Software Vendor Trends for 2012 — Product Portfolio
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR
8 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
SBQ 2Q12 Research Highlights: Key Trends
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR projects license revenue growth will remain in single digits through 2012 as vendors integrate product portfolios to accelerate go-to-market gains in 2013
License revenue growth fell precipitously in 1Q12, with leaders driving licensing gains through security and subscription-delivered solutions
TBR
9 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Customer adoption of disruptive trends are influencing software vendors’ portfolio road maps to include new features, defending install bases
BMC Software:BMC cloud-related sales are rising — now roughly 25% of BMC’s total ESM revenue. BMC Cloud Lifecycle Manager is enjoying large enterprise success with strong sales and customer acceptance but has yet to penetrate the midmarket.Microsoft:With mobile functionality added to the pending launch of Office (set for late 2012), Microsoft will augment both on-premises and cloud Office suite deployments — creating cross-sell and upsell opportunities for direct and indirect teams.Red Hat:Red Hat’s 2Q12 launch of CloudForms adds to its portfolio an open-source cloud management platform designed to span deployment and delivery methods — creating an infrastructure layer with on- and off-premises integration points.VMware:VMware refreshed the vFabric suite during 2Q12, expanding its cloud infrastructure automation and management capabilities. Executives credited solution sales for CY2Q12 double-digit revenue growth.
SBQ 2012 Research Outlook: Product Portfolio
Highlighted Vendor Best Practices — 2Q12 SBQ Vendor Reports
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR
10 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Highlights from TBR’s Assessment of BMC Software’s Two-year Strategic OutlookKey TakeawaysFinancial: Numara will serve as a template for midmarket and channel success in other BMC business segments. Go to Market: Cloud and mobile computing dominate BMC’s go-to-market, while it continues to take advantage of demand for mainframe solutions. Resource: BMC will invest squarely in sales force automation and training to continue on to the next phase of sales team development.
Strategic Outlook• The TBR outlook for BMC is
expected to remain negative for several quarters while BMC works with its sales team and better defines its distribution and product strategies. • BMC faces challenges from
Microsoft, IBM, Oracle, HP, CA Technologies, Dell and upstarts including ServiceNow. • However, BMC holds substantial
intellectual property that, if positioned and marketed effectively, we believe will improve the company’s results and competitive standing.
Robust distribution and concise product strategies are needed to address anticipated performance lags from BMC
9.0%
10.8%
1.5% 0.4% 0.4% 0.7%
5.0% 6.1%7.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2Q11 3Q11 4Q11 1Q12 2Q12 Est.3Q12
2010 2011 2012Est.
In $
Tho
usan
ds
BMC NET REVENUE, GROWTH AND PROJECTIONS
Revenue Revenue Growth Year-to-Year
Net
Rev
enue
Gro
wth
Yea
r-to
-Yea
r
TBR
SOURCE: TBR AND BMC
SBQ Vendor Profiles: BMC Software
TBR
11 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Highlights from TBR’s Assessment of Microsoft’s Two-year Strategic OutlookKey TakeawaysFinancial: Leverage product updates to restore positive growth in core businesses.Go to Market: Integrate mobile and cloud capabilities to capitalize on the growing markets through core solutions.Resource: Invest in acquisitions to complement core portfolio capabilities.
Strategic Outlook• Microsoft’s 2Q12 financial results reflect the
maturation of major products in the market, with top-line revenue rising 4% and Windows revenue dropping 12.6% from 2Q11. • For Microsoft, 2012 is becoming a year in
which the company is positioning itself for long-term growth in its core PC base and the emerging cloud and mobility markets. • Through the remainder of 2012, the launch of
Windows 8 and the new version of Office will continue to position Microsoft to capture future revenue growth outside of its core PC customer base. • Microsoft’s 2Q12 Yammer acquisition will
position Microsoft to better combat cloud competitors (e.g., Google, Salesforce.com) with collaboration functionality that can be added to core portfolio products.
Microsoft is writing the script in 2012 for its long-term growth in the cloud and mobility markets
8.3%
7.3%
4.7%
6.0%
4.0%
2.5%
13.6%
7.5% 7.5%
0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%
$0$10$20$30$40$50$60$70$80$90
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12Est.
CY11 CY12Est.
In $
Bill
ions
MICROSOFT NET REVENUE, GROWTH AND PROJECTIONS
Net Revenue Revenue Growth Year-to-Year
Net
Rev
enue
Gro
wth
Yea
r-to
-yea
r TBR
SOURCE: TBR AND MICROSOFT
SBQ Vendor Profiles: Microsoft
TBR
12 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Executives’ disruptive vision will shape Red Hat’s near-term prospects — but the risk rises if competitors, rather than markets, are the targetHighlights from TBR’s Assessment of Red Hat’s Two-year Strategic OutlookKey Takeaways Strategic AssessmentFinancial: Focus on rapid monetization of headcount, infrastructure and ecosystem investments.Go to Market: Balance aggressive direct sales growth with alliance opportunities, incenting all to execute as a team.Resource Allocation: Expand the company’s storage business end to end while growing its support infrastructure to address a growing install base.
• Red Hat will grow its customer base and accelerate revenue growth with an integrated product strategy, but winning mindshare in the C-suite without leaving behind longstanding relationships with IT will demand investment and strategic sales growth.• With products tied to an addressable market
expansion strategy relying on virtualization, storage and cloud, Red Hat’s portfolio is well aligned with customer purchasing needs in its install base and across market segments.• Red Hat may see competitive challenges from
vendors such as Microsoft and Oracle when elevating its discussion from IT to the C-Suite. Competitors can entrench install bases by ensuring IT and executives alike see the value in existing relationships.
SBQ Vendor Profiles: Red Hat
TBR
13 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Highlights from TBR’s Assessment of VMware’s Two-year Strategic OutlookKey Takeaways Strategic AssessmentFinancial: Ongoing investments will extend VMware’s reach but erode margin through the end of 2012.Go to Market: Reinforce portfolio strengths and cloud commitments while improving end-to-end performance.Resource Allocation: Attention will shift to cost management, positioning VMware to improve margins in CY13.
• TBR believes that 2013 will be a critical growth year for VMware — with Gelsinger as CEO along with products and personnel aligned to deliver growth. We see VMware ready with products designed to combat headwinds as the company challenges Microsoft and IBM in systems management.• The addition of Pat Gelsinger to VMware’s
leadership team as CEO adds end-to-end solutions expertise to the substantial technology expertise already in house — most notably that of Dr. Steve Herrod, CTO and senior vice president of R&D.• We believe Gelsinger will be asked not only
to continue VMware’s cloud-computing reinvention but also to establish himself as a trusted advisor to VMware’s core server virtualization install base.
VMware will balance its portfolio and corporate expansion to realize long-term growth without complicating its go-to-market execution
36.7%31.9%
26.9% 25.1%21.9% 20.0%
41.2%
31.8%12.0%
0%
10%
20%
30%
40%
50%
$0
$1,000
$2,000
$3,000
$4,000
$5,000
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12Est.
CY10 CY11 CY12Est.
In $
Mill
ions
VMWARE NET REVENUE, GROWTH AND PROJECTIONS
Revenue Revenue Growth
Net
Rev
enue
Gro
wth
Yea
r-to
-yea
r
SOURCE: VMWARE AND TBRNOTE: Annual revenue and projections are for CY 2010, 2011 and 2012,
TBR
SBQ Vendor Profiles: VMware
TBR
14 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Go to Market (GTM): Target new partnerships and acquisitions to rapidly expand GTM routes.
Corporate Reinvention: Invest in areas needed to drive CY13 success in product and GTM.
With cloud and mobility continuing to transform software consumption, enterprise software vendors are “holding the line” with three key tactics
SBQ 2Q12 Research Highlights and 2012 Outlook
Software Vendor Trends for 2012
Product Portfolio: Expand capabilities, attaching to high-interest trends and satisfying the install base.
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR
15 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
High-growth markets and high-interest trends are evolving customers’ preferred methods and routes of delivery.Leading vendors are making alliances, acquisitions and investments designed to evolve go-to-market strategies in order to stay ahead of customers — the second best practice TBR noted in 2Q12.
Software Vendor Trends for 2012 — Go to Market
To keep up with customers’ evolving purchasing needs, vendors are expanding go-to-market reach and efficiency with new investments
SBQ 2Q12 Research Highlights and 2012 Outlook
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR
16 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Vendors that are most efficiently accessing global routes to market are realizing growth, despite customers’ purchasing constraints
SBQ 2Q12 Research Highlights: Key Trends
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
With Americas revenue growth outpacing corporate revenue growth, leading vendors are maximizing cross-selling opportunities.
APAC revenue growth averages are at a tipping point, with leaders driving gains atop infrastructure investments.
EMEA growth leaders are creating gains through cloud-led sales.
TBR
17 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
CA Technologies:CA Technologies established a development/ innovation center in Tel Aviv, Israel, and is expanding channel partners for ARCserve in India, supporting high-growth opportunities in cloud, security and big data.Oracle:With a diverse portfolio, a newly unified cloud story and an expanded sales force and partner network, Oracle will drive cross-segment increases, provided direct sales and indirect sales can coexist without cannibalizing near-term opportunities. SAP:SAP is successfully juggling new segments (cloud, mobility, databases), geographies (with record performance in growth markets, including Latin America and expanding investments in China and Russia) and expanded alliances (such as Accenture’s support of SAP HANA and mobility) to realize its lengthy list of 2015 growth objectives.
Investments in global centers of innovation and go-to-market alliances are driving vendors’ competitive advantages in core and new markets
SBQ 2012 Research Outlook: Go-To-Market
Highlighted Vendor Best Practices — 2Q12 SBQ Vendor Reports
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR
18 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Highlights from TBR’s Assessment of CA Technologies’ Two-year Strategic OutlookKey TakeawaysFinancial: Return to positive revenue growth will be slow as field adjustments are made to address account instability. Go to Market: Channel partner recruitment and support programs are a significant change in distribution strategyResource: R&D investments will support cloud and mainframe developments while other resource areas remain flat.
Strategic Outlook• CA Technologies’ strategy is threefold:
maximize value and distribution of profitable mainframe offerings; nurture and expand the distribution channel; and focus innovation efforts internally on integration and cloud with the goal of helping customers with private and hybrid cloud initiatives. • TBR does not see CA Technologies making
smaller-sized acquisitions around its cloud portfolio in coming quarters, as its cloud-based, acquired technologies grew only 1% year-to-year. • Mainframe margins and prospect acquisition
are critical to CA Technologies’ financial success. CA will continue to make mainframe solutions more available in the market and may acquire niche mainframe vendors.
R&D investments will modestly increase as CA Technologies works to integrate its growing cloud portfolio
6.6%
10.3% 10.4%
5.3%
-1.5%1.4%
3.4%
7.4% 6.7%
-3%
0%
3%
6%
9%
12%
$0$500
$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500$5,000$5,500
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 Est. CY10 CY11 CY12Est.
In $
Mill
ions
CA TECHNOLOGIES NET REVENUE, GROWTH AND PROJECTIONS
Revenue Revenue Growth Year-to-year
Net
Rev
enue
Gro
wth
Yea
r-to
-yea
r
NOTE: Annual revenue and projections are for calendar 2009, 2010 , 2011, and 2012 respectively.SOURCE: CA TECHNOLOGIES AND TBR
TBR
SBQ Vendor Profiles: CA Technologies
TBR
19 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Realizing Oracle executives’ FY2013 growth vision will require unified go-to-market strategy and execution spanning all business linesHighlights from TBR’s Assessment of Oracle’s Two-year Strategic Outlook
Key Takeaways Strategic AssessmentFinancial: Continued attention to margins positions Oracle for cross-segment gainsGo to Market: Need for consistent go-to-market leadership and execution to ensure consistent performance Resources and Investments: Use acquisitions and a proven integration strategy to drive segment growth.
• For Oracle to realize CEO Larry Ellison’s ambition to challenge IBM in the high end, Oracle must develop the same market-making power IBM invests into its solutions-focused Smarter Planet initiatives, driven by investment and also by growth momentum from Oracle’s hardware business.• Oracle’s core strengths in applications remain
its primary growth drivers. • However, Oracle has positioned itself well for
near-term growth across business segments by developing a robust portfolio that complements core databases with high-margin, high-profile engineered systems and cloud solutions.
SBQ Vendor Profiles: Oracle
TBR
20 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Highlights from TBR’s Assessment of SAP’s Two-year Strategic OutlookKey Takeaways Strategic OutlookFinancial: SAP will build revenue growth with its focus on sales execution.Go to Market: Recruit partners to HANA ecosystem, opening up new customer bases and opportunities for share growth.Resource Management: Cross-company investment stands to expand long-term reach but erode margin until early CY13.
• The scale of SAP’s addressable market ambitions could drive headwinds in 2013 as SAP continues to invest in disaggregating sales opportunities between direct and indirect teams.• SAP is engaged in a delicate balancing act —
growing direct sales capacity, expanding partner opportunities and simplifying customer deployments across its portfolio, reinforced by SAP’s ongoing investment in its partner ecosystem.• Competitors, including Oracle, Microsoft,
Infor and Epicor, should stay aware of SAP’s increasing channel focus, particularly the channel’s role in driving SAP HANA growth.
Long-term growth for SAP is contingent on consistent sales execution and monetizing investments designed to expand its reach
SAP’s reported currency of record is euros — TBR is working with IFRS results and has converted those results to U.S. dollars via average quarterly exchange rates — 2Q11: $1.44/€, 3Q11: $1.41/€, 4Q11:$1.35/ €, 1Q12: $1.31/€, 2Q12: $1.28/€, 3Q12: 1.28 /€ (Estimate)
SBQ Vendor Profiles: SAP AG
TBR
21 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Go to Market (GTM): Target new partnerships and acquisitions to rapidly expand GTM routes.
Corporate Reinvention: Invest in areas needed to drive CY13 success in product and GTM.
With cloud and mobility continuing to transform software consumption, enterprise software vendors are “holding the line” with three key tactics
SBQ 2Q12 Research Highlights and 2012 Outlook
Software Vendor Trends for 2012
Product Portfolio: Expand capabilities, attaching to high-interest trends and satisfying the install base.
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR
22 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
With industrywide growth rates showing continued signs of being slowed by macroeconomic conditions, vendors are challenged to invest for long-term growth without eroding near-term performance — the third best practice TBR noted in 2Q12.
With product and go-to-market investments as part of the picture, vendors are evolving processes and strategies to set up for long-term growth
SBQ 2Q12 Research Highlights and 2012 Outlook
Software Vendor Trends for 2012 — Corporate Reinvention
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR
23 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Average operating margin for vendors across TBR’s Software Vendor Benchmark was 17.7%, declining nearly 8% from 2Q11.
Sustaining market positions against disruptive entrants is driving industry leaders to accelerate investments, balanced against current margins
SBQ 2Q12 Research Highlights: Key Trends
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR
24 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Looking ahead, vendors are reinventing core processes, executive strategies and business models to drive global gains in CY 2013
SBQ 2012 Research Outlook: Corporate Reinvention
HP Software:HP launched a Concierge Service for Partners program to boost communication and access for the channel. Solutions-focused partners will use a socially enabled portal to procure real-time information on sales initiatives and programs and to engage with HP reps. IBM Software:IBM’s new solution centers in western Europe, (i.e., the Mulhuddart, Ireland, facility announced in 2Q12) and increased branch offices in high-growth Asia markets (i.e., China) will allow IBM Software to continue driving international revenue. SAS:SAS’ acquisition strategy positions the company to include targeted value-add features in its diverse portfolio, creating analytics solutions designed to meet specific customer needs across data analysis and vertical functional problems.Symantec:Highlighted by the 2Q12 divestiture of AdvisorSquare and its 4Q11 divesture of its stake in Huawei-Symantec, Symantec is realigning its portfolio to drive revenue within its core businesses.
Highlighted Vendor Best Practices — 2Q12 SBQ Vendor Reports
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR
25 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Highlights from TBR’s Assessment of HP Software’s Two-year Strategic OutlookKey TakeawaysFinancial: Layer software across other HP segments to help unify the company, improve customer perception of HP as a solutions vendor and increase profits.Go to Market: Expand partnerships across segments to accelerate customer acquisition.Resource: Tightly manage staffing while leadership is adjusted to improve execution.
Strategic Outlook•Companywide, HP Software has the highest operating margin (18% in 2Q12) and expanding software sales across the business will increase overall profits.•HP Software has an ambitious goal of driving 40% (up from an est. 25%) of its sales through partners in 2012 — a target TBR believes will not be within reach until 2013 due to changes in channel management and the time required to mature its channel programs. •HP Software faces many challenges, including improving core revenue streams to make up for Autonomy’s lost impact, addressing the hardware barrier to business-solution technology sales and maintaining positive momentum while HP undergoes long-term restructuring.
HP Software will leverage channel-based business solution sales to address challenges and improve its revenue opportunities
19.5%
28.8%
30.5%
21.7%
18.4%
10.0% 8.7% 5.0%10.0%
0%5%10%15%20%25%30%35%
$0$500
$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 Est. 2010 2011 2012 Est.
In $
Tho
usan
ds
HP SOFTWARE NET REVENUE, PROFITABILITY, GROWTH AND PROJECTIONS
Total Revenue Operating Income Revenue Growth
Net
Rev
enue
Gro
wth
Yea
r-to-
Yea
r
NOTE: Annual revenue and projections are for calendar 2009, 2010 ,2011,and 2012 respectively.SOURCE: HP SW AND TBR
TBR
SBQ Vendor Profiles: HP Software
TBR
26 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Highlights from TBR’s Assessment of IBM Software’s Two-year Strategic OutlookKey TakeawaysFinancial: Leverage software to expand corporate revenue and profitability.Go to Market: Drive growth by leveraging broadened reach of direct sales teams and channel partners.Resource: Accelerate global revenue gains by expanding physical presence through facility deployment in high-growth regions.
Strategic Outlook• Globally, IBM Software will continue
the positive momentum it experienced in 2Q12 in Europe and Asia — estimated at 4% and 8% yearly revenue growth, respectively — by leveraging new facility deployments. • Beyond 2012, IBM Software will
remain focused on driving profitable growth within broader corporate initiatives including cloud, Smarter Planet, analytics and growth markets. • In addition to geographic expansion,
IBM Software will remain focused on extending its core capabilities to capitalize on the growing cloud and mobility markets.
IBM Software will drive long-term gains for IBM as the leading edge of broader corporate growth initiatives
SBQ Vendor Profiles: IBM Software
16.9%
13.0%
8.7%
5.5% 0.0%
3.1%
11%
10%10%
0%2%4%6%8%10%12%14%16%18%
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12Est.
CY11 CY12 Est.CY13 Est.
In $
Mill
ions
IBM SOFTWARE NET REVENUE, GROWTH AND PROJECTIONS
Net Reve nue Re venue Growth Ye ar-to-Year
Net
Rev
enue
Gro
wth
Yea
r-to
-yea
r
NOTE: Annual revenue and projections are for calendar 2011, 2012 and 2013, respectively.SOURCE: IBM AND TBR
TBR
TBR
27 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Highlights from TBR’s Assessment of SAS’ Two-year Strategic OutlookKey Takeaways Strategic OutlookFinancial: Though SAS is privately held, annual reports show accelerating year-to-year total revenue growth (reaching 12% between 2010 and 2011).Go to Market: SAS’ technology focus fuels a go-to-market strategy that appeals to customers across the purchasing spectrum.Resource: Investments will keep SAS close to customers as enterprise vendors acquire their way into the analytics segment.
• SAS' focus on products, customers and investments help SAS remain at the leading edge of analytics and will ensure accelerating revenue growth into CY 2013.• Broad-based economic trends and analytics
customers’ purchasing behavior position SAS for near- and long-term revenue growth within its core businesses.• SAS has the segment advantage of a long-
time first mover, amplified by its depth of portfolio and corporate flexibility and influenced by its privately held status.• SAS’ analytics focus and track record lend
additional credibility as laggard industries consider analytics, and SAS is realizing resultant growth.
SAS’ stable leadership, long-term strategy and technology-led, go-to-market strategy will drive revenue growth atop expanding analytics purchasing
SOURCE: TBR BI & ANALYTICS PURCHASING BEHAVIOR AND MATURITY STUDY
SBQ Vendor Profiles: SAS
TBR
28 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Highlights from TBR’s Assessment of Symantec’s Two-year Strategic OutlookKey TakeawaysFinancial: Restore positive revenue growth by transitioning core solutions to capitalize on the cloud and mobility markets.Go to Market: Establish partnerships with cloud market leaders to extend core information management, backup and recovery, and security solutions.Resource: Refocus the company on long-term growth within its core brands.
Strategic Outlook• Through the remainder of 2012, the top
priority for new CEO Bennett, will be leveraging Symantec’s core strengths to position for long-term growth. • To do this, Bennett will focus on realigning
Symantec’s portfolio and go-to-market strategies around Symantec’s core backup and recovery, information management and security solutions. • Establishing channel and technology
partners, in addition to portfolio realignment, will enable Symantec to extend the presence of core solutions. • A cloud partnership with Microsoft in
2Q12 positions the company to extend the presence of its disaster recovery solutions to Microsoft Azure customers.
Symantec will focus on aligning its portfolio and go-to-market strategies around corporate growth goals in cloud and mobility
9.3%
15.4%
13.6%
6.9% 0.5% 0.9% 1.1% 12.3% 7.0%5.0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12Est.
CY11 CY12Est.
CY13Est.
In $
Mill
ions
SYMANTEC NET REVENUE, GROWTH AND PROJECTIONS
Net Revenue Revenue Growth Year-to-Year
Net
Rev
enue
Gro
wth
NOTE: Annual revenue and projections are for calendar 2011, 2012, and 2013, respectively.SOURCE: SYMANTEC AND TBR
TBR
SBQ Vendor Profiles: Symantec
TBR
29 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Go to Market (GTM): Target new partnerships and acquisitions to rapidly expand GTM routes.
Corporate Reinvention: Invest in areas needed to drive CY13 success in product and GTM.
The balance of CY12 promises incremental spending growth across the enterprise landscape, with SBQ vendors in a position to drive revenue gains
SBQ 2Q12 Research Highlights and 2012 Outlook
Software Vendor Trends for 2012
Product Portfolio: Expand capabilities, attaching to high-interest trends and satisfying the install base.
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR
30 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
SBQ 2012 Research Outlook – 3Q12 Research Highlights
SBQ 2Q12 Research Highlights and 2012 Outlook
TBR
31 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
SP Research Current Topics 3Q12 Report Key Themes• SourceIT — Software
Purchasing, by Industry and Buyer
• Vendor Reports:o Oracleo SAP AGo IBM Softwareo HP Softwareo Microsofto BMC Softwareo CA Technologieso VMwareo Symanteco Red Hato SAS
• Vendor Benchmark• Software CSAT
Where are vendors investing to drive revenue growth across applications and technology business segments?
How are vendors reinventing core value propositions to increase partnering appeal?
Where are vendors allocating investments to ensure attachment to customers’ leading edge business intelligence and analytics needs?
• Where are the leading edge opportunities for
vendors to take share within verticals?• How do those opportunities and buyers vary
when viewed by industry?
How are vendors evolving core product portfolios to entrench install base loyalty while taking share in high growth segments, such as mobility and cloud computing?High-Growth
Segments
Systems Management
BI & Analytics
Industries & Verticals
Enterprise Software
NOTE: THE CLOUD BUSINESS QUARTERLY AND TBR’S SOFTWARE PRACTICE CLOUD RESEARCH WILL BE COVERED WITHIN THE CLOUD BUSINESS QUARTERLY RESEARCH HIGHLIGHTS AND OUTLOOK WEBINAR.
Vendors that can package portfolio offerings to answer the spectrum of customer needs, from niche product to solutions, will see growth in 2012
SBQ 2012 Research Outlook: 3Q12 Research Highlights
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR
32 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
Questions?
SBQ 2Q12 Research Highlights and 2012 Outlook
TBR
33 TBR Quarterly Webinar Series | 9.26.12 | www.tbri.com | ©2012 Technology Business Research Inc.
For further information, please contact:
Stuart Williams James McIlroyDirector, Software Practice Vice President, Salesstuart.williams@tbri.com mcilroy@tbri.com
TBR
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