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The Changing Landscape of SoftwareInsights from TBR’s 1Q14 Software Vendor Benchmark
July 16, 2014
TBR
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Insights from TBR’s 1Q14 Software Vendor Benchmark: Webinar Presenters
Elizabeth Hedstrom Henlin Senior Analyst, Software and Applications
Email: [email protected] Twitter: @EAHHTBR
Matt Healey Principal Analyst, Software and Applications
Email: [email protected] Twitter: @Mhealey_TBR
Christian Perry Content Manager, Data Center
Email: [email protected] Twitter: @ITwriter
TBR
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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
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Current State of the Software Market Landscape
TBR
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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.
Ann
ual R
even
ue G
row
th
1Q14 Revenue GrowthAverage 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
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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%
Corp
orat
e Re
venu
e Gr
owth
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%)
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
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
NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.
Revenue growth leaders, such as Tableau, targeted specific industry verticals to create demand for core products
TBR
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MSFT
SAP
SYMANTEC
AUTODESK
CA TECHNOLOGIES
CHECK POINT
EMC
CITRIX
COMMVAULT
HP SW
INFORMATICA
IBM
NETSUITEOPEN TEXT
ORACLE
RED HAT
SAGESOFTWARE AG
TIBCOTOTVS
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%
Corp
orat
e Re
venu
e Gr
owth
Corporate Operating MarginAverage 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
SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES
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
NOTE: SPHERE SIZE REFLECTS VOLUME OF REVENUE.
SLIPPING
LAGGARDS
LEADERS
IMPROVING
TBR
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TBR Outlook for 2014:Software Vendor Analysis
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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
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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
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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
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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.
Highlighted Case Studies: 1Q14 TBR Software Business Quarterly Vendor Reports
Insights from TBR’s 1Q14 Quarterly Reports: Covered Vendor Research Highlights
TBR
13 TBR Quarterly Webinar Series | 7.16.14 | www.tbri.com | ©2014 Technology Business Research Inc.
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
14 TBR Quarterly Webinar Series | 7.16.14 | www.tbri.com | ©2014 Technology Business Research Inc.
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.
Highlighted Case Studies: 1Q14 TBR Software Business Quarterly Vendor Reports
Insights from TBR’s 1Q14 Quarterly Reports: Covered Vendor Research Highlights
TBR
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Projections
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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
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Questions?
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Insights from TBR’s 1Q14 Software Vendor Benchmark: Contact Information
James McIlroy Vice President of SalesEmail: [email protected]: 603.929.1166
Twitter: @TBRincSlideShare: www.slideshare.net/TBR_Market_InsightYouTube: www.youtube.com/user/TBRIChannelLinkedIn: https://www.linkedin.com/company/technology-business-research
Elizabeth Hedstrom Henlin Senior Analyst, Software and Applications
Email: [email protected] Twitter: @EAHHTBR
Matt Healey Principal Analyst, Software and Applications
Email: [email protected] Twitter: @Mhealey_TBR
Christian Perry Content Manager, Data Center
Email: [email protected] Twitter: @ITwriter
TBR
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Syndicated Research Coverage by Vendor SegmentSoftware 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 BenchmarkThe 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 ReportsInsight 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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