Computing & internet software global report 2010.pdf - IMAP

More documents

Recommendations

Info

In a Forrester Research report on enterprise interestfor OSS, two-thirds of the 1,017 respondents at NorthAmerican and European enterprises expressed someinterest in open source deployment.Virtualization:PC, server, and storage virtualization is growing andis being supported by the relatively tough economicconditions worldwide. Virtualization is introducing newways of packaging client computing applications andcapabilities. As a result, the choice of a particular PChardware platform, and eventually the OS platform,becomes less critical. Thus, enterprises are proactivelybuilding a five- to eight-year strategic client computingroadmap outlining an approach to ownership andsupport, operating system and application selection,deployment and update, and management and securityplans to manage diversity in the virtualization arena.Spending on virtualization software technologies isforecast to grow at a 33.6 percent CAGR from 2009 to2013. Growth would be driven by organizations looking tolower the total cost of ownership and to increase overallIT effectiveness. 1Business intelligence (BI) and analytical software:BI and specialized analytical software such as datamining and predictive analytics, video image analysis,pattern recognition, and artificial intelligence algorithmshelp businesses or governments analyze patterns oranomalies on a real-time basis. These functions make BIimportant in economically challenging times. As a result,1 Gartner Researchthe BI market was much less affected by the economiccrisis than most other software markets.All the big sellers of BI software are either parts of largersoftware vendor or private companies with the exceptionof pure-play BI public companies such as MicroStrategyand Actuate.New categories of advanced analytics, including businessperformance solutions, text analytics, predictiveanalytics, and complex event processing, are expectedto merge into the core BI market, thereby further fuelinggrowth. The BI market is expected to reach $14 billionUSD by 2014. 2Social CRM:Social CRM (also known as CRM 2.0) is a businessstrategy supported by a system and designed to engagethe customer in a collaborative interaction that providesmutually beneficial value in a trusted and transparentbusiness environment.The industry has many participants and includes differenttypes of players such as traditional CRM vendors,community platform and social media players, as well asbrand monitoring players. Most of the players provide ondemandsubscription-based offerings in social CRM.Social CRM is most likely to be the next big trend in theentire CRM industry. According to one Gartner report,social CRM is expected to see significant growth, asmore than 80 percent of the enterprise use of socialnetworking tools in 2010 will be driven by customerengagement projects. In addition, Forrester mentionsthat by 2013, businesses will be spending almost $4.6billion USD on Web 2.0 tools, which include advancedInternet technology and applications such as blogs, wikis,really simple syndication (RSS), and social bookmarking.In an April 2008 report, the research group forecast43 percent annual growth in the social mediamarket for the so-called Enterprise 2.0 asorganizations are investing heavily in socialnetworks.2 Forrester Research: Market Overview: The Business IntelligenceSoftware MarketIMAP’s Computing & Internet Software Industry Global Report — 2010: Page 10
Computing and Internet software industry outlookThe enterprise software market underwent a tumultuousphase during the economic slowdown of 2008-2009and the recession that ensued. The sector overall facedpressure in terms of prices which in turn hamperedmargins. This led to vendors making structural changesin their technology and business model to adapt to thechanging software demand space.Most companies locked in their IT budgets for 2010with a marginal increase in overall IT spending expectedfor the year. While spending is nowhere close to thedepressed levels during the recession, it will be sometime before spending reaches pre-recessionary levels.A meaningful recovery in spending is expected only inthe second half of 2010. With the recession still fresh,companies are looking to convert their enterprisesoftware needs from capex to opex. This means vendorswith SaaS, virtualization capabilities and open-sourcestrategy are poised to benefit in the near future.This is not to say large vendors with non-SaaScapabilities will be left behind. Due to their sheer sizeand geographic diversification, they can price theirproducts aggressively and also bundle offerings tomake packages more attractive. Moreover, as legacyoperators, most of their contracts are maintenancebased, making revenues recurring in nature. This isunlike vendors in only one market or those without awide geographical presence, whose revenues are highlydependent on new contract wins.Geographical presence, in particular, cannot be underestimatedbecause North America still accounts for 45percent of all software revenue, which by any standardis a large chunk. While the share of emerging marketsis expected to increase to 20% by 2013, it is still a smallshare compared with North America. Hence, any futureweakness in the US markets could have a material impacton revenue. Nevertheless, emerging markets willplay a huge role in balancing revenues in the years tocome because of their growing demand potential andunderpenetrated nature.The software sector has always accounted forthe largest number of all technology related M&Atransactions, over 40%. And, the value received isvery much a function of finding the buyer that canbest exploit the acquired technology. This requiresadvisors to conduct a global search effort, evenfor sellers with modest revenues.Ron Klammer, IMAP technology advisor, Southport, ConnecticutSoftware Market Outlook, Quarterly, 2008-2010Global software vendors’ revenues by category of software (percentage change from prior year)2008 2009 20101Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q* 1Q* 2Q* 3Q* 4Q*Operating systems 3% 9% 6% -7% -15% -21% -20% 11% 17% 23% 22% 16%Middleware 14% 19% 12% 3% 4% -4% -2% 3% 5% 5% 7% 6%Applications 14% 17% 12% -3% -12% -16% -13% 2% 10% 12% 12% 12%TOTAL 11% 16% 11% -1% -5% -12% -9% 4% 9% 10% 11% 10%US software vendors’ revenues by category of software (percentage change from prior year)2008 2009 20101Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q* 1Q* 2Q* 3Q* 4Q*Operating systems -3% 3% 1% -7% -14% -23% -20% 8% 10% 16% 16% 14%Middleware 8% 13% 9% 7% 10% -1% 1% 3% 4% 6% 6% 5%Applications 5% 7% 4% -4% -11% -15% -13% 0% 6% 9% 9% 9%TOTAL 6% 9% 7% 1% -1% -9% -8% 3% 6% 8% 8% 8%Source: 2008 and Q1, Q2, and Q3 2009 quarterly financial reports of 18 large, global software vendors 11 BEA Systems (prior to acquisition by Oracle), BMC, Business Objects (prior to acquisition by SAP), CA, Cognos (prior to acquisition by IBM), Fujitsu, Hyperion (prior to acquisitionby Oracle), EMC, Hewlett-Packard, Hitachi, IBM, Mercury Interactive (prior to acquisition by Hewlett-Packard), Microsoft, NEC, Oracle, SAP, Sun (prior to acquisition by Oracle), andSymantec.IMAP’s Computing & Internet Software Industry Global Report — 2010: Page 11
Page 1 and 2: An IMAPHIGH TECHNOLOGYReportComputi
Page 3 and 4: C O M P U T I N G A N D I N T E R N
Page 6 and 7: Considering these factors, most Saa
Page 9: · Mobile specialists with multicha
Page 14 and 15: Thumbnail summaries of top 50 compu
Page 16 and 17: 8: ADOBE SYSTEMS INC. (US)Brief des
Page 18 and 19: 16: SOFTWARE AG (Germany)Brief desc
Page 20 and 21: 24: LAWSON SOFTWARE (US)Brief descr
Page 22 and 23: 32: COMPUTER ENGINEERING & CONSULTI
Page 24 and 25: 40: CEGID GROUP SA (France)Brief de
Page 26 and 27: 48: ADVENT SOFTWARE, INC. (US)Brief
Page 28 and 29: 4: EASTERN EUROPE, THE MIDDLE EAST
Page 30 and 31: Summary of Transactions in the Soft
Page 32 and 33: 5: Autonomy/Interwoven Inc.Announce
Page 34 and 35: 13: Raytheon Network Centric System
Page 36 and 37: Appendix D: Niche Focus AreasThe cu
Page 38 and 39: IMAP’s High Technology TeamBelgiu
Page 40: www.imap.com© COPYRIGHT 2010 IMAP,

Computing & internet software global report 2010.pdf - IMAP

Create successful ePaper yourself

Delete template?

Save as template?