Product Type: Market Research Report
Published by: Ovum Plc
Published: September 2007
Product Code: R464-623Description While architectural and technical debates are interesting, they are not the most significant factors in the future of the software and IT services industry. The most significant issues are non-technical, concerning licensing, pricing and finance. The way that companies tackle these issues will influence which software vendors remain financially viable in the mid-term future. This report sets the agenda for Ovum research in the licensing, financial and pricing arena, which is changing the financial structure of the industry.
Table of Contents - Key messages
- Licensing: open source becoming a significant threat
- Pricing: customers want more cost predictability
- Finance: move towards services will cause fundamental financial transition
- Software vendors must respond to these threats
- The Ovum challenges
- Traditional financial structure
- Product sales
- Professional services
- Product support
- Key issues
- Emerging structures
- Subscription or annuity pricing
- Alternative support models
- Open source
- Licensing
- Software as service
- Transition: issues and solutions
- Financing and leasing
- Pricing transition
- Computational markets
- Table of figures
- Figure 1 Professional service positioning
- Figure 2 Quarterly predictability: SAP
- Figure 3 Quarterly predictability: Oracle
- Figure 4 Financial tensions
- Figure 5 Total revenues gained over ten years: two scenarios
- Figure 6 Project financing and benefits management
- Figure 7 Base assumptions
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