The majority of 21 publicly traded software vendors managed to show year-over-year (YoY) gains over the dismal beating from calendar year (CY) Q1 2009. SaaS vendor maintained their double digit gains while on-premise vendors mostly showed positive traction (see Figure 1) and (see Figure 2). Highlights for the 2010 CY Q1 2010 results:
- Big gains in YoY license revenue for on-premise vendors such as Manhattan Associates (188.64%) and JDA (87.43%) reflect the investments being made in retail and supply chain. Manhattan’s gains are the greatest across the board as they demonstrate a turnaround from last year.
- Meanwhile, SMB bell-weathers Lawson (28.10%), Deltek (24.75%), and Epicor (23.21%) signal return of key license sales in on-premise. Concurrently, Oracle (20.45%) and SAP (11.oo%) demonstrate a strong recovery in enterprise license revenue growth in on-premise.
- Maintenance fee growth for on-premise vendors hold steady with mostly single digit YoY gains except JDA Software (32.71%) and SAP (11.34%).
- SaaS vendors kept steady growth in the double digits for subscription revenue. UltimateSoftware (27.80%), RightNow (26.80%), Salesforce.com (24.47%), and SuccessFactors (24.29%) led the charge.
- Overall growth rates on a YoY revenue basis have stabilized for most SaaS vendors at the mid teens to twenties.
- Of interesting note, professional services fees for on-premise vendors match or double the license revenue. SaaS vendor professional services revenue are well below 1x license revenues, closer to 10% or less.
- Figure 1. Software Insider Index® On Premise Vendors: Q1 CY 2010*
- (Right click to view full image)
- Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.
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