The Changing Landscape of Software

TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C.
The Changing Landscape of Software
Insights from TBR’s 1Q14 Software Vendor Benchmark
July 16, 2014

TBR
2 TBR Quarterly Webinar Series | 7.16.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Insights from TBR’s 1Q14 Software Vendor Benchmark: Webinar Presenters
Elizabeth Hedstrom Henlin
Senior Analyst, Software and Applications
Email: elizabeth.hedstromhenlin@tbri.com
Twitter: @EAHHTBR
Matt Healey
Principal Analyst, Software
and Applications
Email: matthew.healey@tbri.com
Twitter: @Mhealey_TBR
Christian Perry
Content Manager,
Data Center
Email: christian.perry@tbri.com
Twitter: @ITwriter

TBR
Insights from TBR’s 1Q14 Software Vendor Benchmark: Webinar Agenda
• Insights from TBR’s 1Q14 Software Vendor
Benchmark
Current Market State
• Insights from TBR software market coverage:
• Business Intelligence
• In-memory computing
• Mobile device management (MDM)
2015 Market Outlook

TBR
Current State of the Software Market Landscape

TBR
MSFT
SAP
AUTODESK
CA TECHNOLOGIES
CHECK POINTEMC
CITRIX
INTUIT
COMMVAULT
COMPUWARE
HP SW
IBM
INFORMATICA
NETSUITE
OPEN TEXT
ORACLE
RED HAT
SYMANTEC
SAGE
SALESFORCE
SOFTWARE AG
TIBCO
TOTVS
TREND MICRO
VMWARE
PROGRESS
ADOBE-10.0%
10.0%
30.0%
-15.0% 0.0% 15.0% 30.0%
Avg.AnnualRevenueGrowth
1Q14 Revenue Growth
Average Quarterly Revenue Growth = 8.2%
Average Annual Revenue Growth Year-to-Year = 12.4%
1Q14 REVENUE GROWTH VS. AVERAGE ANNUAL REVENUE GROWTH
TBR
ACTUATE
(-31.0%, -10.8%)
TABLEAU
(86.3%, 85.6%)
DELL ENTERPRISE SOFTWARE
(24.0%, 128.2%)
Software revenue leaders grew by attacking competitors’ install bases;
niche players marketed unique use cases to gain attention
Insights from TBR’s 1Q14 Software Vendor Benchmark: Market Overview
Changing software deployment models and integration strategies provide an
opportunity for software firms across segments to drive revenue growth
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
SLIPPING
LAGGARDS
LEADERS
IMPROVING
NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.

TBR
MSFT
CA TECHNOLOGIES
CHECK POINT
CITRIX
COMMVAULT
COMPUWARE
IBM
INFORMATICA
EMC
INTUIT
ORACLEAUTODESK
HP SW
SAGE
SAP
SOFTWARE AG
SYMANTEC
TIBCO
TREND MICRO
VMWARE
TOTVS
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
-20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
CorporateRevenueGrowth
License Revenue Growth
Average License Revenue Growth Year-to-Year = -0.3%
Average Corporate Revenue Growth Year-to-Year = 8.2%
1Q14 LICENSE GROWTH VS. CORPORATE GROWTH
TBR
TABLEAU
(83.3%, 86.3%)
ACTUATE
(-59.8%, -31.0%)
ADOBE
(-30.2%, -0.8%)
OPENTEXT
(5.9%, 31.1%)
PROGRESS
(-25.6%, -11.0%)
The expanding cloud market will continue to challenge license revenue
growth, but leaders are riding high-interest use cases to sales success
Insights from TBR’s 1Q14 Software Vendor Benchmark: Key Trends
SLIPPING
LAGGARDS
LEADERS
IMPROVING
Revenue growth leaders, such as Tableau, targeted specific industry verticals to create
demand for core products

TBR
MSFT
SAP
SYMANTEC
AUTODESK
CA TECHNOLOGIES
CHECK POINT
EMC
CITRIX
COMMVAULT
HP SW
INFORMATICA
IBM
NETSUITE
OPEN TEXT
ORACLE
RED HAT
SAGE
SOFTWARE AG
TIBCO
TOTVS
TREND MICRO
VMWARE
PROGRESS
DELL ENTERPRISE SOFTWARE
ADOBE
COMPUWARE
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
-20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
CorporateRevenueGrowth
Corporate Operating Margin
Average Corporate Operating Margin = 16.7%
Average Corporate Revenue Growth Year-to-Year = 8.2%
1Q14 REVENUE GROWTH VS. OPERATING MARGIN
TBR
SALESFORCE
(-4.5%, 37.4%)
TABLEAU
(-2.5%, 86.3%)
INTUIT
(62.6%, 14.2%)
ACTUATE
(-18.8%, -31.0%)
Many revenue leaders promote messages of profitable growth to distract
from challenges to core businesses
Insights from TBR’s 1Q14 Software Vendor Benchmark: Key Trends
Realigning resources and capitalizing on seasonal market demands enabled leading
software vendors to improve operating margins in 1Q14
SLIPPING
LAGGARDS
LEADERS
IMPROVING

TBR
TBR Outlook for 2014:
Software Vendor Analysis

TBR
Evolving business intelligence (BI) use cases: Pure plays
challenge traditional vendors by carving out niche value
propositions.
“Database wars” heating up: In-memory is key to revenue
growth opportunities.
Mobile device management (MDM): MDM is no longer
ancillary but essential to customers’ collaboration policies.
Changes in expectations and software delivery models drive vendors
to develop additional analytics, mobile and industry-specific functionality
Insights from TBR’s 1Q14 Software Business Quarterly Reports: Market Outlook
Software Vendor Outlook for 2014

TBR
BI and analytic functions are essential to enhancing platforms, and nimble
pure-play vendors have the ability to innovate quickly to meet demand
Insights from TBR’s 1Q14 Quarterly Reports: Covered Vendor Research Highlights
• IBM uses developer engagement to demonstrate the
viability of analytics offerings, shortening the sales cycle of
its core cognitive computing portfolio and positioning
Watson for material 2015 revenue contributions.
• In April Microsoft announced three additions to its
analytics portfolio, including an Azure Intelligent Systems
Service for the analysis of M2M data and new analytics
tools integrated into Excel, enabling the company to drive
cross-portfolio growth to capitalize on opportunity in the
emerging market.
• Pure-play vendors such as Splunk and Tableau will
continue to be thorns in the side of entrenched software
vendors moving into the BI and analytics space.
Highlighted Case Studies: 1Q14 TBR Software Business Quarterly Vendor Reports

TBR
propositions.

TBR
Growth of BI and analytics adoption encouraged vendors to develop in-
memory functionality to boost application run time for customers
• SAP HANA’s successful management of corporate
workloads associated with BI and analytics tasks resulted
in established database vendors increasing investments in
in-memory technologies to innovate ahead of market
demand.
• Although SAP HANA is the leading in-memory solution, in
terms of profile, TBR believes the drawbacks associated
with undergoing an end-to-end database overhaul will give
trailing vendors a window of opportunity to develop in-
memory functionality to defend install bases.
• TBR expects in-memory technologies to be essential for
database vendors, highlighted by Oracle’s investments in
its Database 12c offering and development of integrated
in-memory capabilities and Microsoft’s recent update for
its SQL Server 2014 to expand upon in-memory features.

TBR
propositions.

TBR
BYOD expectations accelerate investments in MDM technologies as
customer concerns over data security continue to rise
• Microsoft’s acquisition of GreenButton in April adds high-
performance compute capabilities to Azure that enable
Microsoft to more effectively compete with competitive
offerings such as Google Compute and Amazon EC2 while
also catering to industries with compute-intensive
workloads.
• Software AG bolstered its mobile portfolio in 1Q14 with its
acquisition of metaquark, a mobile application specialist.
Software AG will integrate metaquark’s mobile application
capabilities in its Intelligent Business Operations and
webMethods Business Process Management suites to
enable management and monitoring capabilities of
mobile devices.

TBR
Projections

TBR
Partners will continue to play a pivotal role in broadening sales reach,
while infrastructure investments will support portfolio adoption
Leverage
alliances to
drive
application
sales and
integrations.
Expand
infrastructure
to extend
seamless
delivery.
Revenue and growth
opportunities for
additional enterprise
software sales at
competitors’ expense
2015 Projections: Go-to-Market and Infrastructure Investments will Drive Competitive Wins
Insights from TBR’s 1Q14 Software Vendor Benchmark: Market Projections

TBR
Questions?

TBR
Insights from TBR’s 1Q14 Software Vendor Benchmark: Contact Information
James McIlroy
Vice President of Sales
Email: mcilroy@tbri.com
Telephone: 603.929.1166
Twitter: @TBRinc
SlideShare: www.slideshare.net/TBR_Market_Insight
YouTube: www.youtube.com/user/TBRIChannel
LinkedIn: https://www.linkedin.com/company/technology-business-research
Elizabeth Hedstrom Henlin
Senior Analyst, Software and Applications
Email: elizabeth.hedstromhenlin@tbri.com
Twitter: @EAHHTBR
Matt Healey
Principal Analyst, Software
and Applications
Email: matthew.healey@tbri.com
Twitter: @Mhealey_TBR
Christian Perry
Content Manager,
Data Center
Email: christian.perry@tbri.com
Twitter: @ITwriter

TBR
Syndicated Research Coverage by Vendor Segment
Software Vendor Reports
(Software Business Quarterly)
Benchmarks and Market Landscapes
(Benchmark XLS data is also available)
• CA Technologies
• Dell Software*
• HP Software
• IBM Software
• Microsoft Corp.
• Oracle Corp.
• Red Hat
• SAP AG
• SAS*
• Symantec
• VMware
• Software Vendor Benchmark
The benchmark currently covers 30 firms, encompassing
software license, maintenance and professional services
revenue.
• Business Intelligence Software Vendor Benchmark*
The benchmark includes BI business of select Software
Business Quarterly vendors and additional pure-play firms
(35 planned for CY2Q14).
TBR Software Practice Syndicated Coverage
*Semiannual publication; **Annual publication
SourceIT — IT Customer Segment Reports
Insight and in-depth study results on N. American and large enterprise
budgeting, buyers and competitors across workloads
• SourceIT Banking &
Financial Services**
• SourceIT Healthcare**
• SourceIT Public Sector**
• SourceIT Retail**
• SourceIT Telecom**

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