Presentation for World Financial Symposiums, London April 16th 2013: Benchmarking the Cloud, look at SaaS financials and Saas Market statistics. Which countries move to the cloud fastest, which segments, how much do saas companies spend on Sales & Marketing and how much do they grow

1. The software industry database
SaaS financials and Market statistics
Rene van Erk,
CEO & Founder ISVWorld,
rene@isvworld.com.
Benchmarking the Cloud
Presentation for World Financial Symposiums, London April 16th 2013
WFS: Educating Technology leaders and investors

2. Agenda
page 2
• Short intro on ISVWorld, the source of the data in this presentation
Live demo/discussion on some marketdata:
• Market statistics to compare cloud maturity:
• Segments: Which software segments and industries move to the cloud the
quickest, which ones are less active?
• Regions: How do UK and/or Western Europe cloud companies rank against US and/or
global
• Financial benchmarks Cloud versus traditional ISVs a/o:
• Performance: Productivity, growth and profitability in SAAS compared to traditional
ISVs? Impact of Sales & Marketing spend on growth?
• Perspective: A sample financial benchmark of Netsuite against ERP software
overall, against global SAAS averages and against SAP and the overall software industry
• Extremes: Or look at the Saas HR segment to find relationships between value, growth
and profitability
• Wrap up

3. About ISVWorld, a “Big Data / Data-as-a-Service” company
page 3
• Largest Global software industry database, covering over 100K
software companies from over 75 countries
• Automated data collection and – classification processes (semi-)
public information from 100- 500 sources per ISV
• Data is searchable on many criteria, for example:
• Application type, Industry, Technology
• Size, Location (Sales/HQ)
• SAAS/Cloud and other “ Ecosystems”
• Customers today:
• Origination, Roll-ups: Corporate M&A, VC, Private Equity
• Marketing & lead campaigns: Cloud providers, outsourcers
• Market research: ISVs, analysts, Corporate Finance
• Build vs. Buy, IT-Strategy: CIO’s, IT Architects, IT-consultants
Quotes:
• “ISVWorld is almost never the
end, but always the start”
(Large IT analyst firm)
• “While we still regret you do not
do email-addresses, your market
insights and intelligence are
unique”
(Top 10 Global ISV)
• Remember:
• all our data are computer-
generated not edited or
curated
• ISVWorld is a market research
and market intelligence tool
• Our objective is to cover all
companies with software
products
(ISVWorld :-)

4. Market statistics
page 4
Live Session 1: Comparing the cloud:
Starting Points:
• 17.7% of ISVs globally had 1 or more cloud based
products in 2012
• 48% of ISVs globally use 1 or more Microsoft
technologies, 12.9% use Oracle.
Questions to answer:
• Cloud by region: How do UK and/or Western Europe
cloud companies rank against US and/or global
• Cloud by ecosystem: Are Microsoft partners or Oracle
partners moving to the cloud faster than average?
• Cloud by segment: Which software segments and
industries move to the cloud the quickest, which ones
are less active?

5. Regional differences: % of vendors with cloud products
page 5
ISVWorld - largest Software Industry database ...globally.
17.7% of ISVs globally have cloud based products, but what about US?

6. Regional differences: % of vendors with cloud products
page 6
ISVWorld - largest Software Industry database ...globally.
United States: 25%
17.7% of ISVs globally have cloud based products, but what about US, UK?

7. Regional differences: % of vendors with cloud products
page 7
ISVWorld - largest Software Industry database ...globally.
United States: 25% United Kingdom: 20.6%
17.7% of ISVs globally have cloud based products, but what about
US, UK, Netherlands?

8. Regional differences: % of vendors with cloud products
page 8
ISVWorld - largest Software Industry database ...globally.
United States: 25% United Kingdom: 20.6% Netherlands: 16.8%
17.7% of ISVs globally have cloud based products, but what about
US, UK, Netherlands and Germany?

9. Regional differences: % of vendors with cloud products
page 9
ISVWorld - largest Software Industry database ...globally.
United States: 25% United Kingdom: 20.6% Netherlands: 16.8% Germany: 10.5%
17.7% of ISVs globally have cloud based products, but what about
US, UK, Netherlands and Germany?

10. Regional differences (2): % of vendors with cloud products in CRM
page 10
ISVWorld - largest Software Industry database ...globally.
However, taking a leading segment such as CRM (or HR) paints a different picture:
Germany: 34.2%

11. Regional differences (2): % of vendors with cloud products in CRM
page 11
ISVWorld - largest Software Industry database ...globally.
However, taking a leading segment such as CRM (or HR) paints a different picture:
Netherlands: 35.2%Germany: 34.2%

12. Regional differences (2): % of vendors with cloud products in CRM
page 12
ISVWorld - largest Software Industry database ...globally.
However, taking a leading segment such as CRM (or HR) paints a different picture:
United Kingdom: 37.9%Netherlands: 35.2%Germany: 34.2%

13. Regional differences (2): % of vendors with cloud products in CRM
page 13
ISVWorld - largest Software Industry database ...globally.
However, taking a leading segment such as CRM (or HR) paints a different picture:
United States: 48.4%United Kingdom: 37.9%Netherlands: 35.2%Germany: 34.2%

14. The Battle for the Cloud by Ecosystem
page 14
ISVWorld - largest Software Industry database ...globally.
Which graph is Microsoft and which is Oracle?
Oracle: 41.2%Microsoft: 28.3%
? ?

15. The Battle for the Cloud by Ecosystem
page 15
ISVWorld - largest Software Industry database ...globally.
Which graph is Microsoft and which is Oracle?
Oracle: 41.2%Microsoft: 28.3%

16. Financial benchmarks
page 16
Live Session 2: Cloud versus traditional ISVs
Starting Points:
• Revenue multiples stand at 3.5 for all ISVs on
average, but 6.75 for SaaS pure plays (public)
• Does a 20%+ growth justify this?
Question to answer: what drives that difference?
• Performance? How does Productivity, growth and
profitability in SAAS compared to traditional ISVs?
Impact of Sales & Marketing spend on growth?
• Perspective: Does a sample financial benchmark of
Netsuite against ERP software overall, against global
SAAS averages and against SAP and the overall
software industry tell us something
• Extremes: Does the Saas HR segment help us find
relationships between value, growth and profitability
Note: we will run most of the analysis live on the our
database, hence not all data are in this deck

17. Sales and Marketing spend versus Growth vs profit
page 17
ISVWorld - largest Software Industry database ...globally.
Easy question: which color is SaaS?

18. Sales and Marketing spend versus Growth vs profit
page 18
ISVWorld - largest Software Industry database ...globally.
Easy question: which color is SaaS?

19. Netsuite versus SAP (and ERP sub-segment and ISVs overall)
page 19
ISVWorld - largest Software Industry database ...globally.
Question: which color represents which segment/company?

20. Netsuite versus SAP (and ERP sub-segment and ISVs overall)
page 20
ISVWorld - largest Software Industry database ...globally.

21. But is Netsuite representative for SaaS overall?
page 21
ISVWorld - largest Software Industry database ...globally.
No, also Netsuite can be put into perspective .. Take Workday and
Cornerstone on Demand

22. page 22
Questions?
ISVWorld: No one covers software like we do
www.ISVWorld.com
kb.isvworld.com

23. page 23
Appendix 2: Background on ISVWorld

24. 3 Core features :
page 24
1. Search & Find 3. Market Statistics
2. Financial Benchmarks

25. Our product today is used for ..
page 25
Market research
• Map competition; find new partners, resellers, acquisition targets or
emerging competitors. Identify ISV’s by segment, geography, size or product
type. Other Market intelligence needs, graphics on size and demographics of
any market (sub-) segment
• For: Market researchers, ISV’s, analysts
Investment decisions
• Identify potential buyers and sellers, both usual and unusual suspects. Define
investment strategy using ISVWorld data for any consolidation or roll-
up, portfolio-play, market-play, bolt-on acquisitions etcetera.
• For: Venture Capital, Private Equity, Corporate Finance, Corporate
Development professionals
Build versus Buy decisions
• Identify & compare all off-the-shelf solutions before committing to a custom
development project
• For: CTO’s, CIO’s, System Integrators, IT-consultants, IT-architects
Find & track Innovation
• Present more innovative solutions to customers: understanding technology
innovation in your domain improves the quality of any engagement.
• For: Management Consultants, IT-consultants, CIO’s, IT-architects

26. ?
..but also in Marketing: ISVWorld finds pre-qualified leads for you.
page 26
The pre-qualified lead concept
• no more mailshots to 20.000 potential leads
• no more 1:1 cold calls by expensive sales reps.
• Identify targeted leads that meet criteria you
define, so you can run highly focused and efficient
campaigns
Cost/lead
# unqualified
leads
Sales-
Cold calling
Marketing,
Email Blast
high
high
ISVWorld-
Pre-qualified leads

27. 120,000 ISVs in ISVWorld means coverage in:
page 27
For more information visit us at www.isvworld.com