Archive for the ‘Intuit’ Category

Thursday’s Disruptive Tech Showcase: SnapLogic Tackles Cloud/SaaS Integration Challenges

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Demand For Complex Cloud/SaaS Based Integration Continues To Increase

Organizations face a deluge of data from more and more new sources, especially in the Cloud.  Existing integration solutions often require expensive custom coding that’s purpose built; but rigid and disposable.  A change in business objects or swap out of new solutions often require brand new investments in integration.  SnapLogic solves a key piece of the Cloud integration problem with modern, pluggable, and reusable pieces of code called Snaps.

Snaps represent an integration task or subtask frameworks of light weight services (a.k.a. SnAPI’s).   SnapFlows orchestrate Snaps to solve the end to end integration that maps back to end to end business process flows.  Through the DataFlow Platform’s open API’s, enterprises can connect a wide variety data sources including (see Figure 1):

  • Enterprise vendor API’s and ODBC
  • Web based REST and http
  • Cloud SOAP and WS*
  • Social Media RSS and atoms

Figure 1. SnapLogic DataFlow Server Provides A Data Integration Platform Through Open-Component APIs and RESTful ARchitecture.

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(Source: SnapLogic)

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Software Insider Index™ (SII): 2009 SII Top 35 Enterprise Business Apps Vendors™

2009 Results In Major Revenue Declines For On Premise And Officially The Year Of SaaS

A review of last year’s financial performance should erase any doubts about the viability of SaaS as a deployment option and a business model.   Traditional on-premise business apps vendors took the brunt of the beating earlier in the year but have slowly recovered.   This year’s Software Insider Index™ (SII) highlights two major themes:

  • Legacy On-Premise Vendors Retain Operating Margins But Lose Revenue Share. Almost every on-premise software vendor lost revenue on a year-over-year (YoY) basis in 2009 (see Figure 1).  IFS (3.87%) and SAS Institute (2.21%) grew in the midst of the financial onslaught.  SAP is still double the size of Oracle in apps revenue!  Vendors such as QAD (-31.42%) and Manhattan Associates (-26.84%)saw the worst YoY declines (see Figure 2).  Most vendors relied on their maintenance and support to bolster their revenues. For example, CDC, Epicor, Exact, Lawson, Manhattan, Oracle, QAD, and SAP exceeded a 1:2 ratio in new license to maintenance revenue.  Why?  Customers chose not to upgrade, purchase new licenses, and expand their footprint.   Despite the downturn, most vendors survived with operating margins between 10% an 50%, well above those achieved by SaaS vendors.   Traditional vendors clearly felt pressure from SaaS/Cloud.
  • SaaS Models Prove Themselves In 2009. Meanwhile, every SaaS vendor grew, from Ariba with the lowest YoY revenue growth (0.44%) to SuccessFactors with the highest (38.73%). Overall the SaaS vendors tracked in the 2009 SII grew 7.98% in YoY revenue. SaaS deployments expanded in all areas from CRM to HCM to spend management. Of note, Salesforce.com exceeded the $1.3B mark, a milestone for the SaaS industry.

Figure 1. Software Insider IndexTM (SII) Top 35 Enterprise Business Apps VendorsTM (Calendar Year Revenue)

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Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Wednesday’s Whispers: People Whispers November/December 2009

PEOPLE WHISPERS: MOVES, PROMOTIONS, AND MILESTONES*

As always, thanks for your emails and alerts. If you’ve got a change or know of a promotion, keep dropping me a line! If you need a referral, and we’ve worked together in the past, don’t hesitate to reach out to me via Linked In.

Eliot Axelrod became Senior Account Exec at Graybow Communications Group in September 2009.  Eliot’s served a variety of account executive roles at technology companies such as  Unimax SystemsSaratoga Systems, Aurigin Systems, Lotus/IBM, and Apple Computer

Michelle Blackmer has updated her current title to Senior Director, Marketing – Healthcare at Initiate Systems .  Prior to Initiate, Michelle served as a marketing manager and project manager at GE Healthcare.

Scott Bonneau has updated their current title to VP IT, Service Management at Dr Pepper Snapple Group. Past positions have leveraged his management consulting skills and include VP Global IT PMO at Cadbury Schweppes plc, Principal at Booz Allen Hamilton, and Senior Consultant at Andersen Consulting.

Anirban Chakraborty has updated his current title to Analyst Relations, Strategic Marketing at Wipro Technologies. Anirban has worked as a consultant at IBM and served as a Systems Analyst at TCS

Eric Christiansen became a Director at BlackRock.  Previous roles include an 8 year stint in various architecture and technology roles at Barclays Global Investors. Eric brings extensive experience in software architecture with roles at ITT Gilfillan, Rockwell International, TRW, and Digital Equipment Corporation

Jeff Comport has become a Senior Vice President with Lawson Software for Product Management.  Jeff will be responsible for overseeing all of Lawson‘s product lines.  Jeff brings to Lawson over 16 years of industry analyst experiences and software management expertise from Integral Systems, Inc (application software) and Criterion Incorporated (application software).C

Ridgely Evers is now on the Board of Directors at SCORE. Ridgely has been focused on helping small businesses succeed.  His current roles include serving as a Managing Partner at Establishment Capital Partners and Tapit Partners.  Previously, he founded NetBooks and worked at Intuit building out QuickBooks and their Online Financial System.

Deb Fitzgerald new CIO for Deltek.  Deb joins Deltek from Verisign where she served as the VP of Information Technology.

Justin Floyd became the CEO of InvestChange.com in October.  The cloud startup focuses on emerging and developing markets.  He founded the company in May 2009.  Previous executive roles include Investor and Chairman at CCL Group plc and Investor and Chairman/CEO at Vecta.

Chuck Gillespie is now Adjunct Professor at IUPUI.  He also serves as the President of Vigor and has focused on the HR technology space as VP of HR Technology at Peoplebase.

Stephen Harvey left his role as a Country Manager for datango.  Havey joined DNA Stream and builds on his management experiences at Sword DDS LTD and Crestec UK LTd.

Laurie Henneborn became Global Research Lead for Technology at Accenture in September 2009.  Previous roles include Global Research Lead for Outsourcing at Accenture, Information Specialist – Banking Channels at AT Kearney, Head Information Specialist at Bates Advertising, and Legal Research Assistant at Paul, Weiss, Rifkind, Wharton and Garrison

Michael Hickins has joined as a News Editor at the WSJ.com at Dow Jones. Michael brings significant technology media experience as the Executive Editor at eWeek, Executive Editor at Ziff Davis Enterprise, Senior Editor at Jupitermedia, Senior editor at Thomson Legal & Regulatory, Editorial Director at Multex, Senior editor at Fairchild Publications, and others.

Lauren Hong was promoted from Account Development Manager to an Account Manager at Forrester Research.

Robert Humphrey was named Infor’s Chief Marketing Officer in November.  Humphrey brings 30 years of marketing and tech experience.  He most recenlty served as Senior Vice-President of WorldWide Field Marketing at McAfee.  Other roles include executive positions at Citadel Security Solutions, i2 Technologies, and OpenDesign, Inc.

Charlie Isaacs became President at SOA Press in October 2009.  Prior to this role, Charlie served as the Chief Customer Officer and Chief Technology for KANA, CTO at Primus Knowledge Solutions, VP/GM Help Desk Lab at Computer Associates (formerly Platinum Technology, and VP of Engineering atGTE Government Systems.

Joseph Loveless joined the Board of Directors at Clear Stake Capital, LLC in August 2009.  He’s currently CEO of Clear Stake, an energy management and carbon abatement concern.  Previous experiences include roles at Product Marketing for Deltek, Product Marketing / Field Marketing Director for CA, Inc., and Director, Professional Services for Entex Information Svcs / Siemens.

Jim Lundy left Gartner to join Saba Software as their VP and GM for Collaboration Software.  Jim previoulsy served roles as Managing Vice President and VP, Distinguished Analyst at Gartner.

Ed Maguire is now Senior Analyst at CLSA Asia-Pacific Markets / CALYON Securities (USA) Inc. Ed’s served previous roles including the Director of Technology Investment Banking and Senior Director at Merrill Lynch.

Subraya Mallya became Advisory Board Member at Sage Scholars Program, UC Berkeley in August 2009

Hellen Omwando became General Manager Light & Health Venture at Philips in June 2009

John Tae Park became a Senior Business Systems Analyst at Toshiba America Medical Systems in December.  JT has served various roles including Oracle Delivery Consultant at IBM Global Services, Sr. Product Manager at Oracle Corporation, and Consultant at Accenture.

Sanjay Poonen is now EVP & GM of Business User Sales at SAP. Sanjay brings expensive managerial and operational experience from previous roles as EVP & GM of Performance Optimization Apps at SAP, Vice President of Line of Business Operations at Symantec Corporation, Vice President of Strategic Operations at VERITAS, Senior Vice President of Marketing, Corporate Officer at Informatica Corporation, and Director of Product Marketing and Strategy, Founder at Alphablox Corporation

Daniel Seaman became Director at Mongoose Cricket in September 2009.  Seaman previously headed product management at WGSN and worked in Marketing Strategy & Product Management at Forrester Research

Stefan Schulz is being promoted to chief financial officer of Lawson Software Jan. 1, 2010.  He succeeds Robert Schriesheim.

Robert Schriesheim, departs Lawson to become CFO of Illinois-based Hewitt Associates, Inc.  Schriesheim will continue to serve on the Lawson board as a non-employee director.

Kevin Schmidt became Director, Product Marketing/Management, Application Platform at Sun Microsystems in August 2009.  Kevin has extensive experience in Master Data Management and other infrastructure technologies.

David Stanley is now Vice President, Business Development and Sales at Altimeter Group.  Previous roles include VP, Sales at ARInsights, Regional Director at MX Logic, and Director, Business Development, Managed Services at Synergy International

Sriram Venkat became Practice Head, CRM at Wipro Technologies in October 2009.  Sriram has served as a practice manager for SAP CRM among his many roles over the past decade at Wipro.

Thomas Wailgum has updated his current title to Senior Editor | CIO.com at IDG Enterprise.  Tom brings over a decade of experience covering business and technology issues for the enterprise.

Jonathan Zhu is now Vice President, Asia at Ken Clark International.  Jonathan brings extensive financial services and Chinese market experiences with senior positions at HORIBA International, Asia Pacific at The EOP Group Inc, and Allied Irish Bank

Your POV

Got a scoop or something to share? Please post or send on to rwang0 at gmail dot com and we’ll keep your anonymity.

* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

Copyright © 2009 R Wang and Insider Associates, LLC. All rights reserved.

Quarterly Financial Tracker: Q1 CY 2009 Slowdown Impacts All Vendors, SaaS Still Experiencing Strong Double Digit Growth

Most software vendor license revenues took a beating this CY Q1 when compared to 2008.  SaaS vendors managed to post double digit gains while only a handful of on premise vendors eeked out a positive gain.  Major highlights in the 2009 Calendar Year Q1 include

  • Big losses in YoY license revenue for on premise vendors such as Manhattan Associates (-73.12%), QAD (-54.37%), Deltek (33.99%), CDC Software (33.77%), and SAP (32.80%) signal significant long term weakness in attracting new business.
  • Few winners in YoY license revenue for on premise vendors.  IFS (13.41%), Intuit Quick Books (5.23%), and Sungard (2.53%) showed positive traction amidst a morass of bad news.
  • On premise vendors stabilized maintenance revenues from major losses.  Some vendors including Epicor (49.25%), Deltek (26.09%), and IFS (20.25%) managed to show significant gains.
  • SaaS vendors cleaned house despite the challenging market.  Taleo (34.20%), Blackboard (26.25%), Concur (25.61%), Salesforce.com (23.14%), and NetSuite (21.83%), led the growth race in YoY total revenue.
  • Growth rates on a YoY basis have slowed for most SaaS vendors, though when factoring the economic forces, these gains reflect truly substantial success.
Software Insider Index® Q1 CY 2009 On Premise Vendors

Software Insider Index® Q1 CY 2009 On Premise Vendors

2009 Calendar Year Q1 SaaS Software Insider Index®

Software Insider Index® Q1 CY 2009 SaaS Vendors

The bottom line – SaaS goes mainstream in 2009 and on-premise vendors must offer hybrid deployment options

SaaS vendor growth continues to defy the ball and chain forces of the macro economy.  Though overall growth rates are less than the year before, the SaaS model gains favor with all sizes of enterprises and in all industries.   Rapid implementation, subscription pricing model, and constant innovation drive significant interest. This leaves on premise vendors in a precarious situation.  Without support for SaaS or other hybrid deployment options, expect customers to wall off their current vendors and pipe in new innovation around the edges with SaaS.

Your POV.

Do you find your vendor sales person becoming more aggressive with their sales tactics?  Have you held back on new purchases or upgrades?  Is this the year you go full out on SaaS? Feel free to post your comments here or send me an email at rwang0 at gmail dot com .

* 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 February 25th, 2009.  Not responsible for currency flux.  Please read the quarterly filings yourself =)

Research Summary: Shape Your Apps Strategy To Reflect New SaaS Licensing And Pricing Trends

FORWARD AND COMMENTARY
“Shape Your Apps Strategy To Reflect New SaaS Licensing and Pricing Trends” represent the seventh report in an on-going series to provide clients with insight on how to better align their packaged apps strategies.  As more and more clients seek SaaS solutions as options to pipe in innovation and potentially control costs, clients should be aware of how to build a SaaS strategy that remains sustainable and prevents vendor-lock in.

Other documents as part of the ongoing series on packaged apps strategy include:

  1. Why You Need A Long-Term Apps Strategy
  2. Forrester’s Long-Term Packaged Applications Strategy Framework
  3. Does Your Apps Strategy Support Your Corporate Business Drivers?
  4. Packaged Apps Strategies Take A Back Seat At Most Enterprises
  5. The ROI Of Packaged Apps Instance Consolidation
  6. Five Steps To Building A Recession Proof Packaged Apps Strategy
  7. Shape Your Apps Strategy To Reflect New SaaS Licensing And Pricing Trends
  8. Third Party Apps Maintenance Rebounds
  9. Craft Your Negotiations Strategy To Reflect New Packaged Apps Licensing And Pricing Trends

RESEARCH HIGHLIGHTS

A. Introduction

Recessionary forces drive applications professionals to seek new delivery models such as software-as-a-service (SaaS), platform-as-a-service (PaaS), and other XaaS (X-as-a-Service) models. But with these options’ upfront benefits in choice, value, and predictability come new ownership risks that applications professionals and business stakeholders should explore. Forrester’s review of 11 vendors in SaaS enterprise resource planning (ERP), customer relationship management (CRM), and supply chain management (SCM) confirms that, motivated by heavy competition for new customers, these vendors remain vigilant in mitigating such end-user concerns. In fact, SaaS vendors continue to improve and refine subscription models for new buying scenarios beyond cost/user/month. Forrester recommends that all applications professionals include SaaS in their firm’s long-term packaged apps strategy and that they take five key actions to mitigate risk while avoiding lock-in.

B. Research Findings

The Recession Is Driving Increased SaaS Adoption 

Faced with impending IT budget cuts, increasing business demands, and the encumbrances of legacy packaged apps, enterprises are increasingly turning to true multi-tenant SaaS delivery options during the downturn.  SaaS adoption as part of a long-term apps strategy keeps growing because:

  • Subscription pricing reduces capital expenditures (capex).
  • SaaS enables more-rapid deployment.
  • Enterprises expect frequent updates with new functionality.
  • Business leaders drive more and more software decisions.
  • Vendor success generates buzz and increased interest.

Vendors Demonstrate Continued Evolution And Value of SaaS Pricing Models
Forrester analyzed the completed, work-in-progress, or ongoing initiatives for the latter half of 2008 for seven SaaS applications vendors. The software licensing and pricing trends Forrester found include refined pricing models, new bundling and unbundling options, and a focus on fixed-price implementations. Specific trends for these SaaS apps vendors include:

  • Amitive delivers a usage-based model to foster collaboration and community participation.
  • Intuit attaches a SaaS services model to on-premise QuickBooks Enterprise Solutions.
  • Intacct reduces the barrier of entry for SMBs while simplifying channel pricing.
  • NetSuite continues to expand vertical-edition bundling and flat-fee pricing for add-ons.
  • QuickArrow delivers choice with tiered and bundled user-based pricing models.
  • salesforce.com provides more value for existing license fees and more user tiers.
  • Workday maintains a simple subscription pricing model based on company size.

Recommendations – Adopt SaaS Benefits While Mitigating Risks In Your Long-Term Apps Strategy

Keep in mind that while cost/user/month SaaS pricing models may seem simple at first, factors such as connection points, storage, support, and module-based pricing can quickly add to their complexity. In addition, true multitenant SaaS models leave users without the software code should the vendor go bankrupt or the client choose to end its relationship with the vendor. While considering SaaS as part of a long-term apps strategy, enterprises should follow these simple suggestions to get the most out of SaaS and mitigate risk:

  • Balance pay-as-you-go month-to-month terms with long-term contracts.
  • Compare SaaS versus on-premise over an appropriate period.
  • Understand long-term ownership implications.
  • Seek more than just refunds for outages in service-level agreements.
  • Choose a financially viable SaaS vendor or seek a software escrow-like mechanism.

C. Report Links

Click on the link for the detailed report along with the “What It Means” and “Alternate View” for: Shape Your Apps Strategy To Reflect New SaaS Licensing And Pricing Trends. For media courtesy requests, please send me an email to rwang@forrester.com

Your POV.

Would love your feedback on the report.  You can post here or send me a private email to rwang0 at gmail dot com.

Copyright © 2009 R Wang. All rights reserved.

Wednesday’s Whispers: The Word On the Street – April 2009

PEOPLE WHISPERS: MOVES, PROMOTIONS, AND MILESTONES*

Congratulations to all!  Thanks for your emails and alerts.  If you’ve got a change or know of a promotion, keep dropping me a line!  If you need a referral, don’t hesitate to reach out to me via Linked In.

Richard Barnett joins Fine Solutions as a Vice President for Business Development.  Richard last served as the CMO at Kineticsware, Inc and served as an evangelist for the Microsoft Dynamics product lines as Director of Product Marketing.

Alan Bowling leaves his post as CIO of Northern Foods and joins the Training and Development Agency for Schools as CIO.  Alan also serves as the Chairman of the very independent and influential SAP UK & Ireland Users Group.

Max Efimov became Director of Emerging Technologies at SITA CORP in November 2008.  Previous roles include serving as a Manager of Enterprise Solutions – SAP for BearingPoint, Enterprise Solutions Architect at Tesoro Corp and Lead Systems Specialist at Valero Energy Corp.

Bill Geist has been promoted to Executive Vice President of Services at CDC Software.  Bill formerly served as the SVP of Customer Services.  Bill brings a wealth of management consulting, staffing and professional services experiences with several senior roles as a Partner at Tatum, L.L.C., CEO of Application Partners, L.L.C., Senior Vice President for Headstrong, Inc., Partner of Whittman-Hart, Inc., Director at Cambridge Technology Partners, and VP of IT and Services for Scientific Atlanta.

Aloke Ghosh has been appointed as the new CFO for Systime.

Peter Graf is now Chief Sustainability Officer at SAP.  Peter served as the Executive Vice President for Marketing at SAP Labs.

Allison Guidette became VP & GM at Thomson Reuters in January 2009.  Prior to Thomson Reuters, Allison served as Senior Vice President of Product Management at Merrill Corporation, Vice President of Business Law at Thomson West, and Senior Director at Corporate Executive Board.

Christof Herzog became Manager Customer Segmentation Fachleiter Kundensegmentierung at Deutsche Telekom in January 2009.  Past roles include Principal Analyst at Vodafone and Senior Quantitative Analyst at Forrester Research.

Indu Khattar brings strong operational experiences to SYSTIME as the COO.  Indu draws upon 2 decades of senior management experience with Fujitsu, ICIM, and Wipro

Tom Kucharvy serves as the CEO at Beyond IT, Inc. in January 2009.  Tom bring a wealth of star analyst skills from Ovum where he was an Senior Vice President and from his experiences in building Summit Strategies as President and CEO.

Norman Liang leaves Fox Interactive Media (Photobucket) to join stealth startup Fire-Exit.  Norm currently advises TripJane and the Martini Media Network.  Prior to Photobucket, Norm served a Business Development role at Nokia.

Justin Mckenna is now a Business Development Representative at CIBER. Justin’s experiences include roles as a Business Development Executive at One Technologies and Account Manager at Forrester Research.

Vinay Nair joins IBM Cognos as an ERP market strategist.  At International Data Corporation (IDC), Vinay served as the Research Manager for the Canadian Enterprise Applications market and a Senior Research Analyst for the Middle East and Africa regions.

Sean O’Neill leaves uTANGO to join GMI as Vice President of product and program management.  Sean has served executive roles in product management including seven years at Amazon.

Matt Pawl was promoted in March 2009 to Vice President of Marketing at Hayes Technology Group.  Matt previously was the marketing director.

Anita Rao joins Symantec with the Global ERP Systems team.  Anita bring senior IT experiences from Visa, Garage Technology Ventures, Jamcracker, Oracle, Merrill Lynch, and Bear Stearns.

Richard (Rick) Reidy has been promoted from COO to President and Chief Executive Officer (CEO) at Progress Software Corporation.  Reidy bring both a products and management background to the position.

Joel Rosenberger joins GMI as Vice President of Engineering.  Joel bring experience from Amazon‘s Web Services team as well as roles as technical diplomat at Microsoft, CTO of TransLink Software, and Senior Architect at Attachmate.

Dave Sampson takes on the role of Vice President for demand generation and customer experience at GMI‘s marketing strategies.  Dave was previously vice president of marketing for Sampa Corporation.

Eilleen Shields takes on new responsibility as a Business Development Manager at Planpower a UXC company. Prior roles include senior sales positions with SAP, Forrester Research, and Jupiter Research.

Michael Sotnick moved to ActivIdentity in December 2008.  As Executive Vice President of Worldwide Sales and Field Operations, Michael will put his sales, channel, and partner enablement experiences from SAP and Veritas to work.

Chloe Stromberg is now a Senior Survey Research Manager at comScore, Inc. Chloe brings analytical and survey experience from work at IdeaLab and the University of Michigan.

Mike Thoma became CTO and CMO at Blink Logic Inc. in December 2008. Previous experiences include roles as a special advisor to the CEO at Blink Logic and VP of Product Marketing at Actuate Corporation.

Angus Thomson takes on a new role at Intuit as VP & General Manager of the Grow Your Business Division.  Angus formerly led Intuit’s Mid-Market group as VP & General Manager.

Chris Townsend joins i-Nova Software as their VP of Marketing.

CORPORATE WHISPERS

Hearing from leading CIO’s and VP’s at technology firms:

  • Many clients refusing to pay maintenance fees and have let contracts lapse
  • Vendors fearful of the high interest in third party maintenance. Some customers considering anti-trust suits in EU and US
  • Virtualization, Business Process Outsourcing, and SaaS seen as cost saving investments
  • Interest in SOA on the decline, but party faithful still in large numbers
  • Gov contracting, healthcare, compliance, project based solutions, and BI remain hot investment sectors for M&A

Got a scoop or something to share? Please post or send on to rwang0 at gmail dot com and we’ll keep your anonymity.

* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

Copyright © 2009 R Wang. All rights reserved.

Quarterly Financial Tracker: Q4 CY 2008 SaaS Vendors Trump On-Premise Vendors In Quarterly Performance

The recession hit most vendors hard in the last quarter of 2008 as evidence by the dismal license revenue YoY comps.  Some exceptions include JDA (52.9%) with a strong presence in retail and Agresso with its growth in public sector (25.6%).  As vendors with perpetual license models hunker down for the pending drought, retention and possible growth of maintenance and service revenues is the key goal, though almost all vendors have put off any maintenance price increases as this would be in poor taste in a down economy.  Details below:

Major highlights in the 2008 Calendar Year  include:

  • Big double digit gains in YoY annual license revenue winners include:  JDA (52.9%) and Agresso (27.5%), Oracle (13.3%), SAP (12.9%), Epicor (11.2%), and QAD (10.0%).
  • Big gains in YoY subscription license revenue winners include: Concur (49.3%), SalesForce.com (43.8%), and NetSuite (40.5%), Taleo (31.1%), and Right Now (17.9%).

Major highlights in the Q4 Calendar Year of 2008 include:

  • Big gains in YoY quarterly license revenue winners include: SoftBrands (124.9%), JDA (52.9%) and Agresso (25.6%)
  • Double digit losses in YoY quarterly license revenue include: Epicor (-34.1%)Deltek (-27.2%), Manhattan (25.5%), Oracle (-15.2%), and Exact Software (-10.8%).
  • Double digit maintenance revenue winners include: Agresso (29.5%), Epicor (17.2%), IFS (13.6%), SAP (12.3%), and Oracle (11.7%).
  • Subscription revenue vendors (i.e. SaaS vendors and vendors with SaaS/OnDemand offerings and others with subscription services) continue to grow at breakneck paces with CA (55%), SAP -Subscription Revenue (39.6%), SalesForce.com (35.4%), Ariba (35.1%), Taleo (31.5%), NetSuite (30.5%), and Concur (21.5%), leading the charge in year over year quarterly revenue growth.

Enterprise Software Vendors with Perpetual License Revenues (YoY Q4 Calendar Year 2008 Comparisons)*

  • Agresso Software (2H 2008) – License up 25.6% to €37.7M/ Maintenance and support  up 29.5% to €84.7M/ Services up 31.6% to  €79.7M. 
    2008 Calendar Year End
    – up 27.5% to € 393.5M/ $500.4M (1 USD = 0.786468 EUR)
  • CDC Software (2H 2008)Awaiting Financial Reports.
    2008 Calendar Year EndAwaiting Financial Reports.
  • Deltek (FY Q4) - License down 27.2% to $19.8M / Maintenance and support down 1.8% to $21.9M / Services up 9.27% to $30.0M
    2008 Calendar Year End - up 4.0% to $289.4M
  • Epicor Software (FY Q4) - License down 34.1% to $25.2M /Maintenance and support up 17.2% to $48.5M / Services up 8.7% to $38.2M
    2008 Calendar Year End - up 11.2% to $477.8M
  • Exact Software (2H 2008) - License down 10.8% to €38.1M /Maintenance and support up 7.5% to €67.4M / Services up 17.2% to €29.7M
    2008 Calendar Year End - up 5.3% to €265.4M/ $337.4M (1 USD = 0.786468 EUR)
  • i2 (FY Q4)- License down 2.5% to $12.1M/ Maintenance and support up 6.3% to $30.9M / Services up 5.1% at $21.9M
    2008 Calendar Year End - flat at $256.9M
  • IFS (FY Q4) - License down 2.0% to SKr 145M /Maintenance and support up 13.6% to SKr 200.0M / Services revenue up 10.8% to SKr 391.0M
    2008 Calendar Year End - up 7.0% to SKr 2,500M/ $279.3M ( 1 USD = 8.94953 SEK)
  • Intuit (FY Q2) - Quick Books revenue up 5.4% to $1754.M
    2008 Calendar Year End - Quick Books revenue flat at $256.9M
  • JDA Software (FY Q4) - License up 52.9% to $34.3M/ Maintenance and support down 6.4% to $44.0M / Services revenue down 3.9% to $25.1M
    2008 Calendar Year End - up 7.87% to $390.3M
  • Lawson Software (FY Q2) – License down 8.9% to $30.1M/ Maintenance and support up 6.4% to $90.1M / Services revenue down 14.6% to $86.2M
    2008 Calendar Year End - up 4.1% to $843.2M
  • Manhattan Associates (FY Q4) - License down 25.5% to $13.8M/ Maintenance and support down 5.7% to $53.8M / Services revenue down 14.6% to $8.0M
    2008 Calendar Year End - down 0.1% to $337.2M
  • Oracle (Apps Estimate) (FY Q2) - License down 15.2% to $469.0M/ Maintenance and support up 11.7% to $1,095.0M / Services (factored as .33 of total services rev) up 13.17% to $189.0M
    2008 Calendar Year End - up 13.29% to $8,418.3M
  • Progress Software (FY Q4) - License up 4.31% to $13.8M/ Maintenance and support up 7.4% to $72.4M / Services revenue down 13.0% to $13.6M
    2008 Calendar Year End - up 5.0% to $518.3M
  • QAD (FY Q3) - License down 7% to $13.1M / Maintenance and support up 1.2% to $32.7M/ Services up 8.9% to $22M
    2008 Calendar Year End - up 10.0% to $279.4M
  • SAP (FY Q4)- License down 6.5% to €1,323.0M /Maintenance and support up 12.3% to €1,129.0M / Services up 8.6% to €808.0M
    2008 Calendar Year End - up 12.9% to €11,567.0M/ $14,689.9M (1 USD = 0.786468 EUR)
  • SoftBrands (FY Q3) - License up 124.9% to $6.7M / Maintenance and support down 4.57% to $12.9M/ Services down 0.4% to $4.9M
    2008 Calendar Year End - up 10.0% to $279.4M

Enterprise Software Vendors with Subscription Revenues (YoY Q4 Calendar Year Comparisions)*

  • Ariba (FY Q4) – Subscriptions up 35.1% to $54.1M / Services down 13.4% to $32.0M. 
    2008 Calendar Year End -
    up 11.8% to $337.1M
  • CA (FY Q3)- Subscriptions up 55% to $1.393B / Software fees down 30% to $15M / Services down 27% to $74M. 
    2008 Calendar Year End -
    up 1.75% to $3,248M
  • Concur (FY Q1) - Subscriptions up 21.5% to $56.6M/ Services down 28.7% to $2.0M. 
    2008 Calendar Year End -
    up 49.3% to $220.4M
  • NetSuite (FY Q4) - Subscriptions up 30.5% to $41.4M
    2008 Calendar Year End - up 40.5% to $152.5M
  • Oracle (On Demand) (FY Q2) – Subscriptions up 13.2% to $189.0M
    2008 Calendar Year End - up 21.7% to $752.0M
  • Right Now (FY Q4) - Subscriptions up 12.5% to $26.5M
    2008 Calendar Year End - up 17.9% to$102.6M
  • SalesForce.com (FY Q4) - Subscriptions up 35.4% to $266.1M/ Services up 15.1% to $23.5M
    2008 Calendar Year End - up 43.8% to $1,076.8M
  • SAP (Subscription Revenues) (FY Q4) - Subscriptions up 39.6% to €74M,
    2008 Calendar Year End - up 41.7% to €258M /$327.6M (1 USD = 0.786468 EUR)
  • Taleo (FY Q4) - Awaiting Financial Restatement of Earnings Estimates – Subscriptions up 31.5% to $37.4M /Sevices down 40.8% to $3.6M
    2008 Calendar Year End - Awaiting Financial Restatement of Earnings Estimates – up 31.1% to $167.7M

The bottom line – on premise vendors will continue to be threatened by SaaS models in a recession

Despite fierce Q4 discounting for on-premise software, many prospects and existing customers continue to explore SaaS options.  The continued explosive growth demonstrates sustaining and growing interest in the SaaS model.  However, on premise vendors are not down for the count and can combat the effects of SaaS by offering hosting, vendor led financing, lower cost of ownership, increased flexibility, and right sized maintenance.  However, the current recession may be the catalyst to bring SaaS pricing and delivery models into the mainstream.

Your POV.

Are you ready to take the SaaS plunge this year?  Am I missing a vendor?  Feel free to post your comments here or send me an email at rwang0 at gmail dot com .

* 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 February 25th, 2009.  Not responsible for currency flux.  Please read the quarterly filings yourself =)