TBR Software Business Quarterly Review & Outlook Webinar Deck
 

TBR Software Business Quarterly Review & Outlook Webinar Deck

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This is the webinar deck from guided recap and analysis of vendor performance reported in TBR’s 3Q12 Software Vendor Benchmark.

This is the webinar deck from guided recap and analysis of vendor performance reported in TBR’s 3Q12 Software Vendor Benchmark.

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TBR Software Business Quarterly Review & Outlook Webinar Deck TBR Software Business Quarterly Review & Outlook Webinar Deck Presentation Transcript

  • TBR’s Software Business QuarterlySMResearch Highlights and OutlookTechnology Business Research Quarterly Webinar SeriesJanuary 9, 2013 TBR T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .
  • Software Business Quarterly Research Highlights and Outlook: Webinar Presenters TBR Stuart Williams Director, TBR’s Software and Cloud Practice stuart.williams@tbri.com @s2_williams Elizabeth Hedstrom Henlin Enterprise Software Analyst elizabeth.hedstromhenlin@tbri.com @EAHHTBR2 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • Software Business Quarterly Research Highlights and Outlook: Webinar Overview TBRTBR’s Software and Cloud Practice covers the vendors that make andshape enterprise software and cloud computing marketsSoftware Vendor Reports Cloud Vendor Reports Benchmarks and Market Landscapes(SBQ) (CLBQ)• BMC Software • Amazon Web Services* Software Vendor Benchmark• CA Technologies • Google Cloud* • Includes publicly held SBQ report vendors as• HP Software • IBM Cloud* well as 19 additional firms• IBM Software • Microsoft Cloud*• Microsoft Corp. • Oracle Cloud* Public Cloud Market Landscape• Oracle Corp • Rackspace* • Includes the public cloud business of CLBQ• Red Hat • Salesforce.com* report vendors as well as 28 additional firms• SAP AG • ServiceNow* NOTE: The Cloud Business Quarterly and TBR’s Software and• SAS* • Verizon Cloud* Cloud Practice cloud research will be covered within the Cloud• Symantec Business Quarterly Research Highlights and Outlook Webinar.• VMwareComing in CY13: Coming in CY13: Coming in CY13:• Dell Software • Fujitsu Cloud* • Applications Vendor Market Landscape• EMC Software • HP Cloud* • Systems Management Vendor Market Landscape• Infor* • Dell Cloud* • Business Intelligence and Analytics Vendor Market • Workday* Landscape • NetSuite* • BRIC Region – Applications Vendor Market • SAP Cloud* Landscape *Semiannual publication3 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • Software Business Quarterly Research Highlights and Outlook: Webinar Overview TBRTBR’s Software Business Quarterly (SBQ) reports deliver unique insightand value through in-depth analysis in a concise, consumable formatTBR reports are unique for their deep, holistic analysis of leading vendor businesses.4 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights and Outlook TBRAgile vendors led the CY3Q12 software vendor landscape, as they wereunafraid to change long-time strategy to get ahead in lagging marketsSoftware Vendor Strategies for CY2012 Portfolio Extensions: Product refreshes by way of including emerging cloud and mobility capabilities Go-to-Market Investments: Outperform mature, turbulent, regional markets with direct and indirect direct sales realignment Corporate Efficiency: Cost management continues to deliver profitable returns, assisting in install base defense SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES5 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • TBR SBQ 3Q12 Research Highlights and 2013 Outlook6 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights and Outlook TBRAgile vendors led the CY3Q12 software vendor landscape, as they wereunafraid to change long-time strategy to get ahead in lagging marketsSoftware Vendor Strategies for CY2012 Portfolio Extensions: Product refreshes by way of including emerging cloud and mobility capabilities Go-to-Market Investments: Outperform mature, turbulent, regional markets with direct and indirect direct sales realignment Corporate Efficiency: Cost management continues to deliver profitable returns, assisting in install base defense SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES7 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights and Outlook TBRIn 3Q12 vendors in TBR’s Software Vendor Benchmark reinvented corebusinesses for new segments to drive long-term revenue growthSoftware Vendor Strategies for CY2012 — Portfolio Extensions Average annual revenue growth across TBR’s 3Q12 Software Vendor Benchmark fell more than 10 percentage points year-to-year, dropping from 17.3% growth in 3Q11 to 4.5% growth in 3Q12 — extending the negative impact of economic conditions on purchasing cycles. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES8 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights: Key Trends TBRSlowed growth in 3Q12 and 2012 overall is driving vendors to repositiontheir strategies to accelerate growth in 2013 TBR tracked license revenue growth in single digits across 2012 – with vendors focused on product portfolios as the means to drive 2013 growth SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES9 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights: Key Trends TBRAcross TBR’s legacy coverage of the software vendor landscape, we aretracking a return to recession trends – this time a perception-led move Vendors are reacting to macro-economic trends and extended customer purchasing cycles by margin efficiency to counter lagging revenue growth. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES10 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ Research Outlook: Portfolio Extensions TBRLandscape leaders are reinventing existing portfolio strengths foruntapped market segments to jump-start license revenue growthHighlighted Vendor Case Studies — 3Q12 SBQ Vendor Reports Microsoft: • With cloud and mobility features included, Windows 8 will enable Microsoft to maintain its dominance in the enterprise PC OS space while providing a viable route to growth in the mobility segment – where Microsoft has yet to make headway. Red Hat: • Red Hat’s tactical acquisition strategy (technology-led purchases designed to expand the scope of core businesses into storage, cloud and management) allow the firm to scale and remain agile — ensuring CY2013 market expansion and revenue growth. SAP: • SAP’s mobile division will fuel SAP growth, with the acquisitions of Syclo and Sybase at the core of an applications-led, horizontal approach that integrates SAP’s diverse portfolio and go-to-market strategy across mobile application delivery. VMware: • VMware’s evolving go-to-market initiatives, such as a specialized practice for healthcare deployments of VMware View, are necessary next steps to keep VMware’s diversifying portfolio tied to core products like vSphere. Interoperability will remain the driver of potential adoption in coming quarters. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES11 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights and Outlook TBRAgile vendors led the CY3Q12 software vendor landscape, as they wereunafraid to change long-time strategy to get ahead in lagging marketsSoftware Vendor Strategies for CY2012 Portfolio Extensions: Product refreshes by way of including emerging cloud and mobility capabilities Go-to-Market Investments: Outperform mature, turbulent, regional markets with direct and indirect direct sales realignment Corporate Efficiency: Cost management continues to deliver profitable returns, assisting in install base defense SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES12 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights and Outlook TBRTo adapt to customers’ increasing purchasing needs, vendors are enhancinggo-to-market strategies by using new tactics to expand current channelsSoftware Vendor Strategies for CY2012 — Go-to-Market Investment Increased focus on global alliances and regional go-to- market partnerships promises near-term revenue growth and improved long-term best practices in channel enablement that can be used as a template by vendors across their ecosystems. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES13 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights: Key Trends TBRIncreased global market opportunity signals vendors need to invest inecosystems, ensuring seamless sales for direct and indirect channels Growing data demands within customer bases are fueling opportunities for expanded BI and analytics, cloud and mobility solutions within the Americas. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES14 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights: Key Trends TBRIncreased global market opportunity signals vendors need to invest inecosystems, ensuring seamless sales for direct and indirect channels (cont.) Europe shows no signs of stabilizing in the near term, as software vendors experienced an overall year-to-year revenue decline within the region of 1.7%. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES15 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights: Key Trends TBRIncreased global market opportunity signals vendors need to invest inecosystems, ensuring seamless sales for direct and indirect channels (cont.) APAC will continue to attract attention as vendors look to take advantage of growing customer technology demands within China, India and Russia. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES16 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights: Key Trends TBRVendors are looking to jumpstart global growth by extending their reach –but employee growth comes at an efficiency cost Vendors are challenged to accelerate new-hire monetization as average numbers of total employees climb, or pay broader prices in profit and margin erosion. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES17 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ Research Outlook: Go to Market Investments TBRTechnology and channel partner programs will continue supplementingdirect sales and provide routes into new marketsHighlighted Vendor Case Studies — 3Q12 SBQ Vendor Reports BMC Software: • Following a 1.5% year-to-year revenue decline in 3Q12, TBR is optimistic about BMC’s prospects for 2013 due to its successful 3Q12 efforts in building distribution strength and R&D. BMC’s sales shift (which began in 1Q12) to focus on new markets and segmentation has resulted in increased sales capacity, increased tenure and decreased attrition rates. CA Technologies: • In each quarter since 3Q11, CA Technologies has attributed poor sales results to lack of sales execution. TBR believes this trend will continue in 4Q12 and that poor sales execution is forcing CA Technologies to look to partners to build momentum as a means to mitigate failure in its sales model and segmentation strategy. HP Software: • HP Software is investing in partner tools and staffing to support channel partners as it seeks to increase growth from its indirect sales model. HP Software has historically utilized channel partners to generate an estimated 25% of revenue, and the firm’s target for this number is 40% by the end of 2012. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES18 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights and Outlook TBRAgile vendors led the CY3Q12 software vendor landscape, as they wereunafraid to change long-time strategy to get ahead in lagging marketsSoftware Vendor Strategies for CY2012 Portfolio Extensions: Product refreshes by way of including emerging cloud and mobility capabilities Go-to-Market Investments: Outperform mature, turbulent, regional markets with direct and indirect direct sales realignment Corporate Efficiency: Cost management continues to deliver profitable returns, assisting in install base defense SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES19 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights and Outlook TBRBy evolving processes and strategies to drive growth, vendors will realizegreater efficiencies from product and go-to-market investments in 2013Software Vendor Trends for 2012 — Corporate Efficiency As operating margin also declined, falling from an average of 21.3% in 3Q11 to 19.2% in 3Q12, vendors in TBR’s 3Q12 Software Vendor Benchmark continued to streamline operations to increase near-term efficiency and longer-term margins. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES20 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights: Key Trends TBRVendors will improve process efficiency and sales efficiency to createmargin momentum in 2013 High growth cloud and virtualization market disruptors are hindering overall growth opportunities for traditional vendors as they look ahead to CY2013. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES21 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights: Key Trends TBRIncreasing cost efficiency as a means through which to grow margin isalready showing results – as vendors accelerate headcount monetization TBR projects that vendors will further increase their focus on reducing operating expenses, particularly in the light of ongoing acquisitions. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES22 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ 3Q12 Research Highlights: Key Trends TBRSustaining margin growth will be critical for vendors as they work toovercome landscape convergence and increase profitability CY13 revenue opportunity is tied to efficiency, as vendors can use improved margins to leverage investments and counter performance in maturing markets. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES23 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ Research Outlook: Corporate Efficiency TBRDespite revenue declines, software vendors will continue to invest inefficiency and customer alignment to drive growth and extend profitabilityHighlighted Vendor Case Studies — 3Q12 SBQ Vendor Reports IBM Software: • IBM Software’s 3Q12 earnings results, which showed flat revenue and increasing profit, reflect the tipping point in the transition from IBM’s traditional software businesses to the emergence of sustained revenue growth from cloud, business analytics and Smarter Planet initiatives. Although the long-term opportunity from these initiatives remains promising, the reality is that profitability is the only lever IBM Software can fully control in the short term. Oracle: • TBR believes Oracle will sustain revenue growth across its businesses, accelerating growth across CY2013, with the help of realigned and retrained sales teams driving cross-selling opportunity in Oracle’s install base. Oracle’s renewed commitment to portfolio interoperability and integration promises revenue gains by midyear in CY13. Symantec: • While the details of Symantec’s long-term growth strategy remain unclear, mobility solution development will be a critical component. Though Symantec made few announcements this quarter, its mobility and channel initiatives are maintaining the company’s momentum in this critical market. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES24 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • TBR SBQ 4Q12 Research Highlights and 2013 Research Outlook25 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • SBQ CY4Q12 Research Highlights and 2013 Research Agenda TBRSoftware vendors are investing to sustain market positions againstdisruptive entrants and to grow revenue in CY13SP Research Current Topics Key Research Themes • SourceIT — Software • Where are vendors investing to drive revenue growth Enterprise across applications and technology segments? Purchasing, by Software  Industry and Buyer • How are acquisitions extending vendors’ applications market reach? • Vendor Reports: Systems o Oracle Management • How are vendors reinventing core value propositions to increase partnering appeal? o SAP AG  • Where are systems management vendors experiencing o IBM Software BI & Analytics the most success in monetizing partnerships? o HP Software Where are vendors allocating investments to ensure o Microsoft  attachment to customers’ leading-edge business o BMC Software intelligence and analytics needs? Industries & o CA Technologies Verticals • Where are the leading-edge opportunities for vendors to o VMware take share within verticals?  • How do those opportunities and buyers vary when o Symantec viewed by industry and by region? o Red Hat o SAS High-Growth How are enterprise software vendors using application Segments development or acquisitions of applications firms to • Vendor Benchmark  extend core portfolios and improve market perceptions of • Software CSAT business value? 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. SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES26 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • TBR Questions?27 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • TBRFor further information, please contact:Stuart Williams James McIlroyDirector, Software and Cloud Practice Vice President, Salesstuart.williams@tbri.com mcilroy@tbri.com28 TBR Quarterly Webinar Series | 1.9.13 | www.tbri.com | ©2013 Technology Business Research Inc.
  • About TBR Contact Us Technology Business Research (TBR) is a leading independent 1.603.929.1166 technology market research and consulting firm specializing in the info@tbri.com business and financial analyses of hardware, software, networking equipment, wireless, portal and professional services vendors. www.tbri.com 11 Merrill Drive Serving a global clientele, TBR provides timely and accurate market Hampton, NH 03842 research and business intelligence in formats that are tailored to USA clients’ needs. Our analysts are available to further address client- specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. To learn how our analysts can address your unique business needs, please visit our website or contact us today. TBR T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .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. TechnologyBusiness 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 notand 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 reportis copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.