Worldwide Internet Users 2004 2005 2006 2007 2008 2009 2010 TOTAL 573.60 621.40 669.50 714.50 756.70 796.30 Worldwide Broadband Households 2004 2005 2006 2007 2008 2009 2010 TOTAL 122.31 163.21 202.89 241.16 278.64 312.45 341.80 2010: 43% of Internet Users have broadband connections, up from 39% in 2008=================================================As more users move online, and more software is being delivered online, the penetration of broadband connectivity has never been more important….Fiber-to-the-home/premises (FTTH/FTTP) initiatives continued to gain momentum in the second quarter of 2009,with some telecommunications companies announcing plans for new FTTx initiatives, while others announced the availability of new FTTx services. The June 2009 statistics published by the FTTH Council Europe found that FTTH adoption in Europe grew 18% during the first two quarters of 2009, and that Sweden leads the region in FTTH adoption, with nearly 11% of broadband connections leveraging the technology.In April, the i3 Group announced the availability of the first “Fibrezone” in South Ayrshire (UK), which will provide customers with connections at speeds up to 100 Mbps. i3 Group also called on the UK government to commit to 100 Mbps FTTH broadband services, or “risk the country being left behind in the wake of a worldwide digital revolution.”German network operator Arcor launched a FTTH pilot in Hanau, connecting ‘Coloneo’, a rural housing project with 300 homes, at speeds of up to 100 Mbps. Lyse Tele, a Norwegian provider, described its unique FTTH model — bring the fiber to the edge of a customer’s lawn, and then provide the customer with instructions on how to bury their own fiber cable to the house.
In 2008, revenue associated with the purchase and distribution of software via the Internet grew to $23B. This was a 18.1% increase over 2007, and according to IDC, Worldwide ESD Revenue will grow at 27.9% in 2010, and 24.5% in 2013.This growth is reflective of user preference for downloading software electronically instead of waiting for physical media. While 20% of the market will likely continue to require physical media (for example some government organizations and more restrictive corporate offices), a vast majority of over 76% of end users prefer electronic distribution. The takeaway from these user preferences is that enterprises should continue to expect to deliver physical media, but with more attention now paid to the online product download centers as the bulk of users focus their attention to the online channel.This actually presents a complex problem. Software publishers will be pursuing strategies that accommodate both a physical delivery strategy (pile all content onto a single disk, in a single file. As well as an online strategy – focus on just-in-time delivery of only the software that the customer has request. Any ancillary content can be found online and downloaded later. References:IDC – Worldwide Electronic Software Distribution 2009-2013 Forecast: Software’s Greener AlternativeAccenture whitepaper: Demonstrating the Benefits of Electronic Software Distribution: A study of greenhouse gas emissions reduction
A third trend in the software delivery market is the rapid growth of software updates by consumer electronics companies, and particularly consumer devices that connect directly to the Internet. These devices are going to get cheaper, and revenue will be generated with services on top of the device (movies, tv, music, games, apps, etc) and each new service typically requires additional software.Apple paved the way with iTunes as the platform to enable new services, and iTunes has updated their software 44 times in five years. Sony PlayStation is similar in requiring 6-10 software updates a year to provide enhanced services. This same pattern of requiring new software updates is emerging with companies like RIM, TomTom, PS3, etc.Recently Research in Motion began accelerating the releases of their popular Blackberry Desktop Manager Software, and saw their traffic climb to 16Gbps each time an update is released.One additional trend to mention is the increased attention on the environment and the impact of reducing the manufacturing and shipping of CDs and DVDs. While this is not a new value proposition, ESD is becoming more visible as a way to reduce emissions by up to 91%. Microsoft and Accenture completed a recent study that is available publicly. URL is: http://www.digitalbychoice.com/en-us/demonstrating.the.benefits.of.esd.accenture.wsp.pdf
Trial Software is a focus area because improving the trial software experience directly impacts revenue for a majority of software publishers. The following areas are under inspection to improve:Drive more prospects to trial software. For many software publishers, software offers via email typically are only opened 25% or less. Publishers are looking for ways to utilize the online channel more effectively.Make the download process easy. When a qualified prospect arrives at the online destination, publishers are looking to ensure these prospects download and trial their software. This means making it easy for the end user to quickly get to the download button, and ensure the trial software is installed successfully and quickly.For downloads that continue to increase in size and take much longer to download, we see customers looking to control their brand and engage the end user during the download so that he will indeed trial the software after it is installed.
For most software publishers, the number of downloads that are for licensed product is lower in volume than trials, but the end users requesting these downloads are in fact some of your most important end users. Not only are they paying customers, but they can become your best advocates for selling additional product, or for support of ESD over physical delivery.Software publishers are focused on Customer Satisfaction and quality of service for this type of download.Trends for licensed downloads include: Drive customer satisfaction with a simple and streamlined user experience2. While keeping the end user experience simple, handle complex workflow for entitled software. For several cases, particularly with enterprise software or consumer software that are sold in suites, more than one download is needed and a shopping cart model may be employed. In some cases downloads must occur in a specific order, the authentication mechanism must be applied to multiple files, and a specific file should be called when all files have been successfully downloaded. The download solution needs to handle this workflow.3. Another trend is the continue growth in file sizes - it is typical to see files ranging from 1 GB up to 15 GB today. Client side software is needed to manage integrity of these large files during transit.4.As online software distribution continues to expand, licensed software downloads needs to address international end users and include support for multiple languages and export controls.
In addition to the trial software download funnel, there is a funnel for software downloads that support the end user. While these end users are past the revenue generating purchase transaction, they can drive up call center and email support costs.For many software publishers, support budget is fixed and needs to be managed, so publishers continue to look for ways to optimize spend and control these costs. Some of the trends in for these support downloads include:Publishers optimizing the support process to ensure that end users can find support downloads if the end user ticket can be addressed via software patches, drivers, or upgrades.Publishers building in auto-patching capabilities into the softwareTo avoid a call center costs, publishers want to ensure that issues can be resolved with software downloads, and the download process must be easy to useFor support downloads that do not resolve an end user issue, provide easy to access email support or call center support
An equally important consideration when optimizing your ESD is the download experience for the consumer, i.e. your customer. This is important. Here’s why. One of our customers distributes about 25 million trials annually. With an average file size of 1.3Gb and a DSL or a cable internet connection, it takes about 40 minutes to complete a download. What is interesting is that currently we consider the “transaction” to be over once the download starts. The truth is that it has just began. Up until now we had spent efforts trying to present the benefits from our software and the opportunities it creates. From investing in SEM, to various site navigation and page optimizations, through general brand-based and more product-specific marketing efforts.Once the download starts, we see a boring screen with transfer rate, download time (which never seems to decrease or sometimes frustratingly increases).The fact is that these boring minutes are an opportunity to continue the conversation with the customer. We can learn more about their goals, provide relevant learning, training, getting started information, and try to optimize their experience with our product in the limited time of the trial.These 40 minutes represent an opportunity for both the customers and for us. An opportunity, that has a size of .. – consider this – 40 minutes x 25 million downloads. This is equivalent to 16.6 million people/hours. In the 2009 SuperBowl terms, considering its 94.5 million audience, it is equivalent to running a 10 minute commercial. How much would you pay for that?! And consider how much more qualified your audience is.Certainly, this experience needs to be accessible, compelling, easy to use, personalized, responsive. It needs to be cross OS, and take advantage of the thousands of media elements and assets we have available to help our different customer segments. It needs to be able to easily integrate with a reliable and extendable technology.
SafeNet EMS Showcase: Electronic Software Delivery - Challenges and Opportunities to Win the Consumer
Electronic Software Delivery<br />Challenges and Opportunities<br />Reynold HarbinSr. Product Line Director, Software Delivery<br />Akamai Technologies, Inc.<br />
Key Industry Trends<br />Broadband Adoption<br />Growth & User Preferences<br />Primary Use Cases<br />
Worldwide Internet UsersGrowing Broadband Adoption <br />900<br />796M<br />757M<br />800<br />715M<br />700<br />600<br />(43% of users on broadband)<br />500<br />Users (millions)<br />342M<br />312M<br />400<br />279M<br />300<br />200<br />100<br />0<br />2008<br />2009<br />2010<br />Worldwide Broadband households<br />Worldwide Internet users<br />Sources: eMarketer, Worldwide Online Access: 2004-2010, International Telecommunications Union (ITU); Organization of Economic Cooperation and Development (OECD)<br />
Software Delivery TrendsGrowth and User Preference<br />Online Software Delivery is growing rapidly<br />$23B – 2008 ESD associated revenue<br />18.1% increase from 2007<br />Forecasted to grow 24.1% annually through 2013<br />Users want physical and electronic options<br />Majority of U.S. users prefer electronic distribution:<br />32.4% want all software online<br />43.7% want initial software on disk, but updates online<br />20.7% want initial software and updates on disk<br />
Software Delivery TrendsConnected Devices and Green revisited<br />Connected devices continue to drive software updates<br />iTunes updates 44 times in five years <br />Same pattern occurring with RIM, TomTom, PS3, etc<br />100+ connected device exhibitors at 2010 CES<br />Using ESD to achieve Corporate Green initiatives<br />“Emissions can be reduced by up to 91% by exclusively downloading software through the Microsoft Volume Licensing Service Center”<br />Source: Accenture “Demonstrating the Benefits of Electronic Software Distribution”<br />
Customer satisfaction</li></ul>Support Updates<br /><ul><li> Retain the customer
Maintain high level of </li></ul>satisfaction<br /><ul><li> Control delivery costs</li></li></ul><li>Trials and Marketing Downloads Maximize Revenue Opportunity<br />Drive more prospects to trial software<br />Make download process easy<br /><ul><li>Minimize download steps
Ensure quality</li></ul>Control the brand during download and engage the user<br />Visit Product Page<br />Click “Download”<br />Install Download Manager<br />Complete Download<br />Launch Software<br />Purchase<br />The trial software download funnel<br />
Licensed Software Maximize Customer Satisfaction<br />Moving users from physical to online requires ESD champions<br />Simplify user experience to improve satisfaction<br />Address complex workflows<br /><ul><li>Users may download many files
Make download decisions without worrying about network provisioning for download spikes</li></li></ul><li>Electronic Software DeliveryChallenges and Opportunities<br />Reynold Harbin<br />Senior Product Line Director,Software DeliveryAkamai Technologies, Inc.<br />