1 fred amoroso president and ceo macrovision software value management

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Fred AmorosoPresident and CEO

Macrovision

Software Value ManagementSoftware Value Management

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Dateline: 2008Dateline: 2008

SOFTWARE INDUSTRY ON THE BRINK? MAJOR PRODUCERS DECLARE MASSIVE LOSSES

SHOW 1st VIDEO “DOOM & GLOOM”

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““Cut the Complexity”Cut the Complexity”

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Market DynamicsMarket Dynamics

Vendor

Enterprise

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Vendor

Enterprise

Market DynamicsMarket Dynamics

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Vendor

Enterprise

Market DynamicsMarket Dynamics

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Vendor

Enterprise

Market DynamicsMarket Dynamics

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The Role of Software Value ManagementThe Role of Software Value Management

Vendor

Enterprise

SoftwareDevelopmentManagement

SoftwareInventory

ManagementSoftware Value Management

S o f t w a r e L i f e c y c l e M a n a g e m e n t

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Vendor

EnterpriseEnterprise

The Role of Software Value ManagementThe Role of Software Value Management

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Enterprise

Building Blocks of Building Blocks of Software Value ManagementSoftware Value Management

Software & Hardware Vendors

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Sept 2005 SoftSummit Pricing & Licensing Sept 2005 SoftSummit Pricing & Licensing Study….Study….

Enterprises

Software & Hardware Vendors

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ISV’s are not Listening to Their CustomersISV’s are not Listening to Their Customers

SOFTWARE VENDOR vs. ENTERPRISESatisfaction with Pricing & Licensing Strategy

N=484

ISV

Enterprise

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To Get Off The WallStreet Tread Mill, To Get Off The WallStreet Tread Mill, ISV’s Are Adopting Subscription PricingISV’s Are Adopting Subscription Pricing

% Software Vendors Offering Subscriptions

43% of ISV’s “Want a more predictable revenue stream”

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……But Enterprises Still Prefer PerpetualsBut Enterprises Still Prefer Perpetuals

ENTERPRISE:Preferred Pricing Model

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……And They Prefer Concurrent LicensesAnd They Prefer Concurrent Licensesto Those Locked to a Person or Serverto Those Locked to a Person or Server

ENTERPRISE:Preferred Licensing Model

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……And that preference is growing And that preference is growing

ENTERPRISE:Preferred Licensing Model

2004 vs. 2005

% Change in Enterprises

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SVM Success StoriesSVM Success Stories

Enterprises

Software & Hardware Vendors

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“Citrix customers enjoy an easy, streamlined process to monitor, maintain and track software licenses. Citrix eliminated costs associated with complex licensing agreements and offers their customers a wide range of flexible pricing models.”

Harvey TenenSenior Product Manager

Citrix

Customer Agility Customer Agility

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SVM Success StorySVM Success Story

Enterprises

Software & Hardware Vendors

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“We wanted end users to have a user-friendly install process while providing enterprise IT departments with the advanced administrative features they require. ”

John SenezDirector of Localization

Corel Software

Outstanding Out-of-the-Box Experience Outstanding Out-of-the-Box Experience

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SVM Success StorySVM Success Story

Enterprises

Software & Hardware Vendors

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With our existing staff we migrated 100+ legacy applications to 600 machines in 72 hours…all without any interruption to our customers. ”

Darrin Veit

Technologist II Comcast Cable

Hiding Complexity & Improving ProductivityHiding Complexity & Improving Productivity

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Software Value Management means…Software Value Management means…

Cutting the Complexity

Flexible systems & processes that enable responsiveness to changing customer demands

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SVM Ends The Complexity CrisisSVM Ends The Complexity Crisis

Enterprises want….

To buy only what they need

Software that is painless to deploy & maintain

Zero professional services (don’t mask your

complexity behind people)

Software that “self-heals”

Software that just works… right out of the box

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SOFTWARE PROFITS TOP NASDAQ

OCTOBER 10, 2008

SHOW 2nd VIDEO “GUSTO & GLORY”

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See SVM in ActionSee SVM in Action

Please visit the product showcases, listed in your agenda

A complete copy of the Pricing & Licensing Report is available for download at:

www.softsummit.com

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METHODOLOGY & SAMPLEMETHODOLOGY & SAMPLE

232 Enterprises

– Typical titles were CTO, VP Development, and IT Director

– InformationWeek, 3rd party databases

252 Software Vendors

– Typical titles were CEO, CMO, VP Product Marketing, and VP Product Management

– SIIA, 3rd party databases

Email Survey in September 2005

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Manage Complexity—Maximize ProfitsManage Complexity—Maximize Profits

Focus on your core business–leverage third party experts for non-core activities

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Plan with change in mind–Build flexibility into product & service architectures

Prioritize customer needs–Ensure you’re investing in the right places to be successful

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Manage Complexity—Minimize CostsManage Complexity—Minimize Costs

Optimize decision-making–Look beyond data to find information

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Anticipate exceptions

–Avoid rigid processes

Align with key suppliers

–Make sure they provide what you need