Order iressa online cheap, Purchasing in Q3 reflected both economic downturn and summer doldrums. While on-premise vendors continued massive double digit declines in year-over-year new license revenue, SaaS vendors faced some pressures in keeping up with tremendous growth. However, long term economic outlook still favor SaaS players and early indications on Q4 budget flush indicate that SaaS and Cloud are top of mind. Major themes in the 2009 Calendar Year Q3 include:
- On the SaaS front, Salesforce.com (19.55%) continues to lead the pack followed by Blackboard (18.44%) and Concur at (12.94%) (see Figure 1). While SaaS vendors still experienced growth, Concur (12.94%), Ultimate Software (9.76%), and Taleo (8.77%), NetSuite (3.22%) experienced drops in rate of growth. Taleo and NetSuite faced the biggest drops in Q3.
- Tracked publicly traded SaaS vendors represented $756.2M in Q3 software revenues.
- On-premise vendors showing gains in EPS despite revenue drops (see Figure 2).
- Specialty on-premise vendors JDA Software (-2.63%) and IFS (-5.07%) reversed license growth and lost year-over-year quarterly gains.
- Lawson Software reversed a license free fall showing growth in Q3 (22.77%). Ordering cytoxan pill, Healthcare and HCM continued to bolster its license growth and come back.
- Maintenance revenues continue to float losses in license revenue for on-premise vendors. Growth in maintenance continues to slow.
Figure 1. SaaS Vendors Face Q3 Headwinds And Growth Slows Vs Q22009 Q3 Calendar Year SaaS Revenues
[caption id="attachment_3742" align="alignnone" width="789" caption="2009 Q3 Calendar Year SaaS Revenues - Copyright © 2009 R Wang and Insider Associates, Florida FL Fla., Order cytoxan online, LLC. All rights reserved."]
[/caption]2009 Q2 Calendar Year SaaS Revenues
[caption id="attachment_3743" align="alignnone" width="798" caption="2009 Q2 Calendar Year SaaS Revenues - Copyright © 2009 R Wang and Insider Associates, iressa farmacia a buon mercato, Zometa no prescription, LLC. All rights reserved."]
[/caption]Figure 2. On-premise Vendors Face Continued Market Brutality
[caption id="attachment_3746" align="alignnone" width="934" caption="2009 Q3 Calendar Year On-Premise Revenues - Copyright © 2009 R Wang and Insider Associates, lowest price gleevec, Kansas KS Kans., LLC. All rights reserved."]
[/caption]
The Bottom Line For Users - Expect Continued Discounts in Q4
A poor Q3 will bring good news to buyers in Q4 as vendors will continue to heavily discount licenses and professional services while delivering more value to retain maintenance margins. Conversations with 41 CIO's indicate that a Q4 budget flush is in the works. The conditions favor end users as poor economic conditions, Missouri MO Mo., Washington WA Wash., realization by vendors, and need to invest will yield a great buying season, Jotta gleevec verkossa. Buy iressa online cheap,
The Bottom Line For Vendors - Start The Subscription Revenue Model Shift
It's time to go on a SaaS offensive. The train has left, but its not too late. Expect hardware vendors, Oregon OR Ore., Ordering iressa online, telecom providers, and other companies looking to gain software multiples to enter the market via SaaS. 2010 will bring significant acquisitions in this space as well as more proliferation of SaaS offerings and PaaS delivery models. Best of breed solutions delivered via SaaS will cut into on-premise market share. Cloud computing will not be an end all be all. Hybrid deployment will continue to be the norm, order gleevec. Buy gleevec online, Your POV.
Ready for some great renewal conversations in Q4? Feel free to post your comments here or send me an email at rwang0 at gmail dot com for any assistance in contract negotiations with your vendor or the development of a software licensing and pricing strategy for 2010.
* Not responsible for any math errors or erroneous revenue information. Calendar year estimates based on the quarter nearest the calendar year. Exchange rates as of November 189th, halvalla epogen apteekki, Minnesota MN Minn., 2009. Not responsible for currency flux. Please read the quarterly filings yourself =)
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7 Comments »
Shame no Supply Chain Management vendors made it on to the list although serious B2B business applications via SaaS I guess are still maturing.
[...] provide an example of IBM converting its offerings to a more cloud centric delivery model. If Ray Wang’s on-premise vs. SaaS trend spotting is correct, ISVs have some serious writing on the wall to deal with: namely, going [...]
[...] provide an example of IBM converting its offerings to a more cloud centric delivery model. If Ray Wang’s on-premise vs. SaaS trend spotting is correct, ISVs have some serious writing on the wall to deal with: namely, going [...]
Ray – why are you comparing apples and oranges? SaaS fees are for license, maintenance and hosting. Perpetual license fees are only for license. If you want to be a little more accurate, you should at least be using the sum of perpetual license fees plus maintenance for perpetual fee vendors.
Also, the Cloud is not SaaS. I think you will find that perpetual vendors will soon be selling pertetual licenses via the cloud to take advantage of the lower cost of hardware, infrastructure and deployment.
Finally – Lawson license fees were not and are not in “freefall”. That’s just sloppy reporting.
Harry
[...] vendors are offering (see BI SaaS Vendors Are Not Created Equal ) . We should thus expect to see continued dimunition of the on-premise vendors BI revenue streams as the SaaS BI value proposition goes mainstream, although it wouldn’t be surprising to see [...]
[...] proliferation of SaaS solutions provides organizations with a myriad of sorely needed point and disruptive [...]
[...] vendors are offering (see BI SaaS Vendors Are Not Created Equal ) . We should thus expect to see continued dimunition of the on-premise vendors BI revenue streams as the SaaS BI value proposition goes mainstream, although it wouldn’t be surprising to see [...]
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