line-of-business investments as a path to enterprise software revenue growth: insights from tbr’s...
DESCRIPTION
The enterprise software market continues to evolve as both IT and line-of-business customers look to software purchases for reinvention. Customers’ expectations are increasing, as they require the seamless integration of horizontal functions, such as HR, finance and accounting, and supply chain solutions from major providers such as Oracle, SAP and Microsoft. Additionally, database vendors continue to move closer to the application layer, with in-memory and cloud functionality creating the opportunity for “packaged” and readily consumable, data-driven solutions that create chances for broader business intelligence deployments. Rounding out the ecosystem, systems management vendors look to middleware and applications allies across the landscape to embed management and across the entire software stack to create high-value relationships with customers. Tuesday, April 1, 2014, Enterprise Software Senior Analyst Elizabeth Hedstrom Henlin shared her perspective on market-making buyer trends within the software ecosystem and provided webinar attendees with strategic projections around vendor and customer activity. She then field questions from the audience. Questions for discussion will included: 1. How are vendors adjusting portfolios and go-to-market approaches to increase growth and outreach to line-of-business buyers in 2014? 2. How are vendors reinventing core portfolios and value propositions to expand mobile access and delivery to grow revenue? 3. In which industries are vendors shifting spend to expand applications, technology and systems management portfolio traction for 2014? 4. How does opportunity and customer demand vary when viewed by line of business, portfolio and region? 5. Where are vendors shifting spend to counter erosion in maintenance-fueled profitability?TRANSCRIPT
TBR
TECHNOLOGY BUSINESS RESEARCH, INC.
Line-of-business Investments as a Path to Enterprise Software Revenue Growth
Insights from TBR’s 4Q13 Software Vendor BenchmarkTechnology Business Research Quarterly Webinar Series
April 1, 2014
TBR
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Insights from TBR’s 4Q13 Software Vendor Benchmark: Webinar Presenters
Elizabeth Hedstrom Henlin Senior Analyst, Software and Applications
Email: [email protected] Twitter: @EAHHTBR
Ramunas Svarcas Principal Analyst, Professional Services
Email: [email protected] Twitter: @rjsTBR
TBR
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Insights from TBR’s 4Q13 Software Vendor Benchmark: Webinar Agenda
• Insights from TBR’s 4Q13 Software Vendor Benchmark
Current Market State
• Insights from TBR software market coverage:• Line-of-business (LOB) outreach• End-user experience• Solutions integration, streamlined
execution
2014 Market Outlook
TBR
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Current State of the Software Market Landscape
TBR
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Revenue and growth leaders are using portfolio integrations and relatively simple deployments as discussion points to accelerate sales
Insights from TBR’s 4Q13 Software Vendor Benchmark: Market Overview
High stakes for enterprise software vendors’ success in driving growth extends beyond revenue into reaching for historic profits
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
SLIPPING
LAGGARDS
LEADERS
IMPROVING
NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.
TBR
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Vendors able to survive the market’s migration to cloud will pivot core offerings to suites to simplify purchasing and deployments for customers
Insights from TBR’s 4Q13 Software Vendor Benchmark: Key Trends
SLIPPING
LAGGARDS
LEADERS
IMPROVING
NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.
Software vendors are fueling license revenue growth by simplifying offerings to appeal to a wider range of buyers and expanding capabilities of targeted offerings such as BI
TBR
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INTUIT
MSFT
SAP
SYMANTECACTUATE
AUTODESK CA TECHNOLOGIES
CHECK POINTEMCCITRIX
COMMVAULT
COMPUWARE HP SW
INFORMATICA
IBMOPEN TEXT
ORACLE
RED HAT
SAGE
SOFTWARE AG
TIBCO
TOTVS
TREND MICRO
VMWARE
PROGRESS
ADOBE
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
-20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%Corp
orat
e Re
venu
e G
row
th
Corporate Operating MarginAverage Corporate Operating Margin = 19.8%
Average Corporate Revenue Growth Year-to-Year = 9.5%
4Q13 REVENUE GROWTH VS. OPERATING MARGIN
TBR
NETSUITE(-14.1%, 35.3%)
DELL ENTERPRISE SOFTWARE(-12.8%, 40.7%)
SALESFORCE(-9.1%, 37.2%)
TABLEAU(11.3%, 94.9%)
Relative year-to-year growth slowdowns emphasize vendors’ reliance on license sales and a resulting need to respond to cloud migration demand
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
Insights from TBR’s 4Q13 Software Vendor Benchmark: Key Trends
Leading growth vendors including Informatica, VMware and Tableau are focusing on aligning core portfolios to high-growth partners and markets
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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Line-of-business (LOB) outreach: Simplified interaction with data and analytics solutions to address LOB criteria
End-user experience: Simplified user interfaces to engage both IT and line-of-business users
Solutions integration, streamlined execution: Streamlined solutions development and sales
Vendors must enhance partner networks and expand distribution to address the transition from sales of traditional software to cloud
Insights from TBR’s 4Q13 Software Business Quarterly Reports: Market Outlook
Software Vendor Outlook for CY14
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
TBR
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Balancing portfolio simplicity and functionality will stimulate adoption among LOB buyers and drive revenue growth across CY14
• SAP InfiniteInsight stands to expand the market visibility not only of SAP’s predictive analytics features, but also of SAP’s end-to-end business intelligence portfolio. TBR sees customers of SAP Lumira and SAP HANA positioned to benefit from SAP InfiniteInsight’s launch, as predictive and modeling functionality within SAP InfiniteInsight will increase the depth of insights generated by SAP HANA and visualized by SAP Lumira.
• HP’s HAVEn platform is a foundation of integrated solutions that can support HP Software’s ongoing product updates to help customers derive value from big data and analytics. HP’s converged infrastructure credibility, along with Vertica-led software strengths, position it to capture a leading position in analytics solutions by CY15.
Highlighted Case Studies — 4Q13 TBR Software Business Quarterly Vendor Reports
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
Insights from TBR’s 4Q13 Software Business Quarterly Reports: Covered Vendor Highlights
TBR
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Software Vendor Outlook for CY14
End-user experience: Simplified user interfaces to engage both IT and line-of-business users
Solutions integration, streamlined execution: Streamlined solutions development and sales
Line-of-business (LOB) outreach: Simplified interaction with data and analytics solutions to address LOB criteria
Vendors must enhance partner networks and expand distribution to address the transition from sales of traditional software to cloud
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
Insights from TBR’s 4Q13 Software Business Quarterly Reports: Market Outlook
TBR
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Intuitive user interfaces supplement mobile, social and analytics capabilities to sustain product adoption despite disruptive competitors
• In November Microsoft announced a new version of Dynamics CRM that includes features and functionality to meet the growing demand for mobile, social and marketing automation. With an improved user interface, Dynamics CRM 2013 integrates acquired social capabilities from Yammer and NetBreeze to give customers a social collaboration experience, while touch optimization makes Dynamics CRM more accessible to customers on any mobile device.
• Initiatives such as Project Neo, simplified search capabilities for data discovery and the formalization of a Watson business unit will simplify user interaction with complex analytics tools and help IBM Software’s message better resonate with LOBs.
Highlighted Case Studies — 4Q13 TBR Software Business Quarterly Vendor Coverage
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
Insights from TBR’s 4Q13 Software Business Quarterly Reports: Covered Vendor Highlights
TBR
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Software Vendor Outlook for CY14
End-user experience: Simplified user interfaces to engage both IT and line-of-business users
Solutions integration, streamlined execution: Streamlined solutions development and sales
Line-of-business (LOB) outreach: Simplified interaction with data and analytics solutions to address LOB criteria
Vendors must enhance partner networks and expand distribution to address the transition from sales of traditional software to cloud
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
Insights from TBR’s 4Q13 Software Business Quarterly Reports: Market Outlook
TBR
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Streamlined portfolio offerings simplify vendors’ engagement models for customers and partners
• Oracle’s ability to integrate its BI and big data portfolios will be paramount if the firm is to successfully defend and grow its customer base against competitors also investing in converged infrastructure solutions (notably HP) and those launching cloud-based Hadoop solutions (e.g., AWS Elastic MapReduce).
• As Dell begins a new chapter, monetizing assets within the software portfolio will be the company’s key focus, as acquisition activity and investment in new capabilities will likely be limited over the next year. Given the state of Dell’s portfolio, with acquired portfolios such as SonicWall, Kace and Wyse, the focus for the company will be rebranding and repacking these assets to align with market opportunities in areas such as mobility.
Highlighted Case Studies — 4Q13 TBR Software Business Quarterly Vendor Reports
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
Insights from TBR’s 4Q13 Software Business Quarterly Reports: Covered Vendor Highlights
TBR
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Projections
TBR
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Enterprise software vendors will survive traditional market boundary erosion by tying core products to line-of-business value propositions
Customers seeking highly
integrated, specialized, end-to-end solutions
Vendors looking to survive via
divestitures, business model
reinvention, portfolio
growth and increased
sales
CY14 Buyers’ Market: Vendors are increasing integration of core competencies into cloud environments to sustain license sales and maintain profitability
Insights from TBR’s 4Q13 Software Vendor Benchmark: 2014 Market Projections
TBR
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Questions?
TBR
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Insights from TBR’s 4Q13 Software Vendor Benchmark: Contact Information
James McIlroy Vice President of SalesEmail: [email protected]: 603.929.1166
Twitter: @TBRincSlideShare: www.slideshare.net/TBR_Market_InsightYouTube: www.youtube.com/user/TBRIChannelLinkedIn: https://www.linkedin.com/company/technology-business-research
Elizabeth Hedstrom Henlin Senior Analyst, Software and Applications
Email: [email protected] Twitter: @EAHHTBR
Matt Healey Principal Analyst, Software and Applications
Email: [email protected] Twitter: @Mhealey_TBR
Christian Perry Principal Analyst, Data Center
Email: [email protected] Twitter: @ITwriter
TBR
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Syndicated Research Coverage by Vendor SegmentSoftware Vendor Reports(Software Business Quarterly)
Benchmarks and Market Landscapes(Benchmark XLS data is also available)
• CA Technologies• Dell Software*• HP Software• IBM Software• Microsoft Corp.• Oracle Corp.• Red Hat• SAP AG• SAS*• Symantec• VMware
• Software Vendor BenchmarkThe benchmark currently covers 29 firms, encompassing software license, maintenance and professional services revenue.
• Business Intelligence Software Vendor Benchmark*The benchmark includes BI business of select Software Business Quarterly vendors and additional pure-play firms (30 planned for CY4Q13).
TBR Software Practice Syndicated Coverage
*Semiannual publication; **Annual publication
SourceIT — IT Customer Segment ReportsInsight and in-depth study results on N. American and large enterprise budgeting, buyers and competitors across workloads
• SourceIT Banking & Financial Services**• SourceIT Healthcare**
• SourceIT Public Sector**• SourceIT Retail**• SourceIT Telecom**
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