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Software Channel Benchmarks: IDC's 2005 Software Margins Study

Product Type: Market Research Report
Published by: IDC
Published: April 2005
Product Code: R104-23738
Description

This IDC study presents the results of a survey of 303 partners conducted in early 2005. It includes the gross margins that partners report they earn for reselling various types of software. The data is also segmented by partner type, size, and customer focus.

"The latest IDC software margin benchmarks indicated that partners are still earning reasonable returns in most software application categories. However, software margins have generally declined over the last year for the VAR community. These partners may be shifting some of the margin from products to services to be more competitive and meet customer demand for a full solution." ? Julie Tiley, manager, Analytic Products, Global Software Partnering and Alliances

Table of Contents
Table of Contents
IDC Opinion
In This Study
Methodology
Respondent Demographics
Figure: Respondents by Partners Revenue Size
Table: Respondents by IDC Partner Segment
Figure: Respondents by Client Focus
Situation Overview
Introduction
Survey Findings
Figure: Average Gross Margin by Software Product, 2005
Table: Average Gross Margin by IDC Partner Segment and Software Product, 2005 (Mean %)
Figure: Average Gross Margin by Software Product for VARs, 2004 and 2005
Table: Average Gross Margin by Partner Revenue Size and Software Product, 2005 (Mean %)
Table: Average Gross Margin by Client Focus and Software Product, 2005 (Mean %)
FUTURE OUTLOOK
Essential Guidance
Figure: The Economic "Flywheel"
Learn More
Related Research
Definitions
The IDC Partner Segmentation Model
Figure: Partner Business Model
Synopsis
Ordering and More Information
Price and Delivery Options



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