tbr’s software business quarterly readout

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TECHNOLOGY BUSINESS RESEARCH, INC.

TBR’s Software Business QuarterlySM

Research Highlights and OutlookTechnology Business Research (TBR) Quarterly Webinar Series

April 17, 2012

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2 TBR Quarterly Webinar Series | 4.17.12 | www.tbri.com | ©2012 Technology Business Research Inc.

Software Business Quarterly Research Highlights and Outlook: Webinar Presenters

Elizabeth Hedstrom HenlinAnalyst, Software [email protected]@EAHHTBR

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

mailto:[email protected]


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TBR’s Software Business Quarterly (SBQ) reports deliver unique insight and value through in-depth analysis in a concise, consumable format Clients are gaining advantages and better understanding revenue opportunities through not only our reports but also through their personal relationships with TBR.

• TBR reports are unique for their deep holistic analysis of leading vendor businesses.

• Financial modeling and TBR insights help customers build a better understanding of vendor business models.

• TBR reports and webinars are designed to be responsive to client timelines, to be clear and concise, and to provide insights across multiple layers of an organization.

• TBR’s strategic assessment provides an impartial reality check on a vendor’s progress in its strategic objectives.

Software Business Quarterly Research Highlights and Outlook: Webinar Overview

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Solutions Selling: Solving business problems through product portfolios expanded by new features, acquisitions or alliances

BI + Mobility as Growth Engines: High-interest trends as means to rebrand core vendor strengths

Midmarket Best Practices – Cloud: Evolving core products for cloud delivery to move enterprise strengths down-market

Software Vendor Trends for 2012

For 2012, software vendors are looking to cloud and mobile delivery methods to counter the changing standard of modest industry growth

SBQ 4Q11 Research Highlights and 2012 Outlook

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Vendors’ 4Q11 results signal the beginning of a long-term industry shift – and positioning comprehensive solutions-centric portfolios allows leading firms to seize an advantage in the market.

Software Vendor Trends for 2012 – Solutions Selling

Solutions positioning lets leading vendors position themselves as end-to-end capable “trusted advisors” to IT managers and key C-suite influencers


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Growth leaders are finding ways to tap into customers’ desires for additional compatible functionality and leading-edge technology via low-impact upgrades.

SBQ 4Q11 Research Highlights: Key Trends

The significant year-to-year slowdown in license revenue growth is driving the software vendor landscape’s evolving product and sales strategies

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Highlighted Vendor Best Practices – 4Q11 SBQ Vendor Reports

Oracle:• Ability to package industry-focused solutions allows

Oracle to sell ready-for-deployment products into verticals, maintaining customer-centric products.

• Successful market footprints for Exadata, Exalogic, Exalytics and the Database Appliance will pave the way for Oracle to marry its systems and software portfolios in a solutions-oriented approach.

IBM SW:• IBM’s aggressive string of 4Q11 acquisitions

reinforces its strategy of leveraging acquisitions to drive Smarter Planet functionality and growth.

• TBR believes IBM is assembling the right software building blocks to meet its goal of $10 billion in Smarter Planet revenue by 2015.

VMware:• Record 2011 revenue performance indicates

buyers see virtualization as fundamental to cloud. • TBR sees VMware moving its evolving portfolio –

increasingly capable of end-to-end virtualization, cloud, and management – to aim for competitors’ core strengths in orchestration and integration.

Market leaders are linking point solutions to customer-focused, integrated software product families to drive revenue growth

SBQ 2012 Research Outlook: Solutions Selling

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Near-term share gains for vendors will come from tailoring offerings to planned customer investment areas, capitalizing on leading-edge adopters.

Software Vendor Trends for 2012 – BI + Mobility as Growth Engines


Vendors are aligning offerings to capture BI investment in 2012, looking to cloud & mobile delivery as well as predictive analytics to win purchasers

TBR


Leading vendors are iterating core products to attach to leading trends – including BI and mobility – to appeal to net-new buyers.


Solving business problems within core install bases will stimulate near-term license sales for software vendors in 2012

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Data growth and access remain customer concerns in 2012, and leading vendors will solve business problems with ready-to-implement offerings

SBQ 2012 Research Outlook: BI and Mobility

HP SW:• Analytics, BI and big data are viable opportunities

for HP, with a focus that builds on the company’s roots in IT infrastructure and service management.

• TBR sees the best approach for HP as positioning its analytics solutions – via Autonomy, Knightsbridge, and Vertica – to solve business problems related to operational excellence.

BMC Software:• BMC Software’s long-term goal is to integrate cloud

and mobile management into its portfolio, with its aspiration of managing the end-to-end IT stack.

• By enhancing its Control-M product with mobile functionality, BMC is iterating core mainframe strengths to attack new growth opportunities – positioning itself for 2012 growth.

SAP:• By beating its 2011 revenue forecast, HANA is now

core to SAP’s strategic growth initiatives. • For 2012 SAP is implementing HANA as “the next-

generation architecture in every … [category] where [it goes] for leadership” – including cloud, mobility, analytics, applications, and database technology.

TBR


TBR sees leading vendors successfully positioning themselves with scalable solutions to penetrate previously inaccessible segments with enterprise-grade, midmarket-ready solutions.

Software Vendor Trends for 2012 – Cloud Delivery as a Midmarket Best Practice


Countering the maturity of the enterprise software market, leading vendors are looking at the midmarket for new global opportunities

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Leading vendors are looking to the midmarket to counter slowing core segment growth rates, and have the top-line opportunity to invest in the near-term.


Support revenue will remain an integral part of enterprise vendor growth, driving investment in cloud-fueled midmarket opportunities

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Transitioning core capabilities to cloud delivery models positions vendors to drive long-term gains, as customers focus on scalable deployments

SBQ 2012 Research Outlook: Cloud as Means to Midmarket

CA Technologies:• With Cloud Commons, CA Technologies is facilitating

cloud adoption while creating visibility for its own leadership, vision and cloud portfolio.

• CA Technologies has heightened its profile with key midmarket customers’ trusted advisors, creating a near-term segment competitive advantage.

Microsoft:• Microsoft is extending its global presence with the

launch of Dynamics CRM’s social collaboration functionality in India.

• With BRIC markets skewing to the midmarket, the combination of Dynamics CRM and Office 365 positions Microsoft to take near-term share.

Oracle:• Oracle’s private cloud activities, dating back to 2009,

provide the technical experience behind the 4Q11 launch of its Social Network as well as its pending Public Cloud.

• With subscription-based, cost-effective cloud solutions, Oracle has an appealing offering for core customers while also expanding its midmarket reach.

TBR


SP Research Current Topics 1Q12 Report Key Themes• Applications

purchasing, by market/segment

• Appliance Adoption• Software CSAT• Vendor Reports:o Oracleo SAP AGo IBM Softwareo HP Softwareo Microsofto BMC Softwareo CA Technologieso VMwareo Symantec

• Vendor Benchmark

Outline best practices of enterprise vendors winning in the midmarket, growth opportunities

How are systems management vendors linking core businesses to cloud opportunities?

What are leading purchasing scenarios and drivers for BI, analytics, data management portfolios?

How are vendors meeting customers’ data security needs in cloud and traditional deployments?

Highlight divergent purchasing trends and buying criteria within high-growth markets (e.g., midmarket and BRICS countries – Brazil, Russia, India, China, South Africa).

High-Growth Segments

Systems Management

BI & Analytics

Security

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.

2012 opportunities for software vendors continue to coalesce around solving customers’ business problems with incremental investments

SBQ 2012 Research Outlook – 1Q12 Research Highlights

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Questions?


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For further information, please contact:

Stuart Williams James McIlroyDirector, Software Practice Vice President, [email protected] [email protected]



TBR

TECHNOLOGY BUSINESS RESEARCH, INC.

About TBR

Technology Business Research (TBR) is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, networking equipment, wireless, portal and professional services vendors.

Serving a global clientele, TBR provides timely and accurate market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis.

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This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.


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