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Gate2Shop Software Industry Overview

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This is a short overview of the software industry online.

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Gate2Shop Software Industry Overview

  1. 1. Sell. More.<br />SOFTWARE INDUSTRY OVERVIEW <br />
  2. 2. Sell. More.<br />Agenda<br />Agenda<br />The Market<br />Business Models<br /> - Subscription-based<br /> - One-off purchases<br />Industry Specifics<br />
  3. 3. Software Online Sales<br />In 2009 total online sales were around $260 billion<br />An upward trend is noticed in the B2C segment<br />Online software sales are expected to climb in the next 3 years<br />According to Forester Research the total online sales in 2011 will be approximately $560 billion<br />3<br />
  4. 4. Online Software Sales<br />4<br />
  5. 5. Online Software Sales Distribution<br />5<br />
  6. 6. Sell. More.<br />Agenda<br />Agenda<br />The Market<br />Business Models<br /> - Subscription-based<br /> - One-off purchases<br />Industry Specifics<br />
  7. 7. 7<br />Subscription-based Software<br />This business model is relevant for companies selling:<br /><ul><li>Website access to premium content
  8. 8. Support
  9. 9. Upgrades
  10. 10. Hosted Applications
  11. 11. Software as a Service</li></ul>Options for customer data storage<br /><ul><li>The customer data is stored at the vendor
  12. 12. The customer data is stored at Gate2Shop</li></li></ul><li>8<br />Subscription-based Software<br />Options for customer data storage<br /><ul><li>The customer data is stored at the vendor
  13. 13. The customer data is stored at Gate2Shop (preferred by service providers)</li></ul>Payment Options used – Credit and Debit Cards, Direct Debits <br />Billing cycles – daily, monthly, quarterly or any other recurring time interval <br />Shifting standard business models towards Subscription-based<br />
  14. 14. Sell. More.<br />Agenda<br />Agenda<br />The Market<br />Business Models<br /> - Subscription-based<br /> - One-off purchases<br />Industry Specifics<br />
  15. 15. One-off Purchases <br />This business model is relevant for companies selling:<br /><ul><li>Website access to premium content
  16. 16. PC Support
  17. 17. Add-ons and Upgrades
  18. 18. Other Software as a Service businesses </li></ul> All payment options can be applied to the business model:<br /><ul><li>eWallets
  19. 19. Real-time Bank Transfers
  20. 20. Credit and Debit Cards
  21. 21. More</li></ul>10<br />
  22. 22. Sell. More.<br />Agenda<br />Agenda<br />The Market<br />Business Models<br /> - Subscription-based<br /> - One-off purchases<br />Industry Specifics<br />
  23. 23. 12<br />Industry Specifics<br />The more payment options are offered the greater the conversion ratio<br />Credit and Debit Cards remain the predominant payment option for the software industry<br />Around 30% of all software sold online is SaaS<br />Online software sales are expected to grow at a 34% growth rate<br />

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