Michael Fauscette, Group Vice President, SBS
©Copyright 2009 IDC
2009 IDC 10-09

Where We Stand
 Crisis –
 Impact
 Where’s the bottom?
 How / when do we recover?
 Fundamental changes
 Consumption models
 Structural change
 Innovation
© 2009 IDC 10-09 2

SW Applications Forecast Changes
8.0%
7.0%
6.0%
5.0%
2008 (Early)
4.0% 2008 (Dec)
2009 (Jan)
3.0%
2009 (May)
2.0%
1.0%
0.0%
2008 2009 2010 2011 2012
©Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
2009 IDC 10-09

WW SaaS Market Revenue:
2006-2012
25,000
WW SaaS Revenue ($m)
19,831
20,000
17,656 2008 SaaS Regional Segmentation
15,664 North America
8.5%
GR: 1 250 296
15,000
-12 CA 1,001
2007 11,921 94 Latin America
EMEA
10,000 8,636 6,995
6,032 Asia/Pacific (-
Japan)
5,000 4,250
Japan
Total market is $8.63 billion
0
2006 2007 2008 2009 2010 2011 2012
 WW SaaS market will expand rather than contract during the ongoing 2012 SaaS Regional Segmentation
economic crisis – 42% YoY growth in 2009
North America
603 807
 Net new customer growth slowed in 2H08, but SaaS vendors expanded
Latin America
deeper into their bases (e.g. salesforce.com added only 12% more 4,126
customers, but grew “subscribers” by 39% and top-line revenue by 36% in EMEA
14,021
Q109 and 41% in Q209) 273
Asia/Pacific (-
 Traditional factors of looking to software to reduce business costs, Japan)
automate processes and improve competitiveness persist (overall 09 WW Japan
Total market is $19.83 billion
applications spend +344%) but most customer see that SaaS provides par
functionality and more value
 CAPEX restrictions have clearly shifted spending for process-driven
software purchases to LOB, which have overwhelmingly turned to SaaS Source: IDC, 2009
© 2009 IDC 10-09

Services Resource Planning Forecast
Growth 8.4% 12.1% 12.6% 11.5% 10.8%
© 2009 IDC 10-09

A Little History
Manufacturing Resource Planning (MRP)
Enterprise Resource Planning (ERP)
mfg
supply
finance
chain
PRODUCT
employee customer
etc.
© 2009 IDC 10-09 6

A Little History
Enterprise Resource Planning (ERP)
Professional ResourceAutomation (PSA)
Services Services Planning (SRP)
delivery
finance sales
PROJECT
resources customer
etc.
© 2009 IDC 10-09 7

Business Challenges
 Economy
 Commoditization & profit
pressures
 Competition
 Pricing
 Execution
 Project & resource
management
 Talent acquisition &
retention
© 2009 IDC 10-09 8

Business Challenges
 Managing complexity
 Contracts
 Rev-rec
 Visibility
 End-to-end business process
 Purpose built
© 2009 IDC 10-09 9

SRP
Analytics
©Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
2009 IDC 10-09

Contact
Michael Fauscette
mfauscette@idc.com
Twitter: @mfauscette
Blog: www.mfauscette.com
© 2009 IDC
© 2009 IDC 10-09