Software Insider Index™ (SII): 2009 SII Top 35 Enterprise Business Apps Vendors™
Published on March 18, 2010 by R "Ray" Wang
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.
Your POV.
What’s your read on the market? Do you feel the SaaS model has added pressure to your traditional vendors? Will everyone have a SaaS option in 2010?
Am I missing a vendor? Got the numbers wrong? Feel free to post your comments here or send me an email at rwang0 at gmail dot com . Disclaimers
* Not responsible for any math errors or erroneous revenue information.
1. Calendar year estimates based on the quarter nearest the calendar year.
2. Why these vendors than others? Easy – because I cover them.
3. Exchange rates as of February 25th, 2010 for vendors who have not published quarterly conversions. Not responsible for currency flux.
4. Estimates created for privately held vendors.
Not sure? Please read the quarterly filings yourself =) Related resources and links
K-12 Education Market Faces New Requirements The latest CDC guidelines highlight the major challenges administrators and educators have for reopening schools. The general principle – the more interactions, the longer interactions, the higher the risk of #COVID-19 spread. The CDC states that the risk of COVID-19 spread increases in school settings as follows: Lowest Risk: […]
Contactless, Direct To Consumer, Buy Online Pickup Anywhere, Automation, and Subscription Ready Drive Post Pandemic Response Matrix Commerce analyzes the disruptive pressures influencing the commerce paradigm. Commerce faces rapidly changing business models and new payment options that are often misunderstood and poorly integrated. Matrix commerce (TM) means the fusing of demand signals and supply chains […]
Understand The Key Priorities In A Post Pandemic Response Over the past seven weeks, Constellation Research, Inc. has fielded hundreds of calls from CXO’s about what to consider in the business and technology response to the coronavirus and Covid-19 fall out. The conversations with clients and the analysis from the research team have resulted in […]
Understand The Key Priorities In A Post Pandemic Response Over the past three weeks, Constellation Research, Inc. has fielded hundreds of calls from CXO’s about what to consider in the business and technology response to the coronavirus and Covid-19 fall out. In fact, on Friday April 3rd, Constellation convened a conversation with more than 40 […]
Big Tech Steps Up To Support The “War” Effort Over the past two-weeks, the tech community has sought different ways to assist with the battle against Covid-19. Efforts range from free usage of product, cash assistance, donations, and product innovations. Here’s a short run down of some highlighted announcements: IBM, The White House, and Department […]
Cognitive Apps Power The Future Of Autonomous Enterprises Cognitive applications run mission-critical business systems in a continuous, self-driving, self-learning, auto-compliant, self-securing, and self-healing approach. These AI driven systems intelligently automate transactional systems and processes such as campaign to lead, order to cash, procure to pay, incident to resolution, concept to market, and hire to retire. […]
Data In Early Case Fatality Rates Are Naturally Biased To Show Massive Fatality While there’s nothing wrong with an abundance of caution for high case fatality rates we are seeing for the COVID-19 coronavirus, the data is not accurate. We keep hearing 3.5% or 4% of the population is going to die. Why is the […]
Event Organizers and Large Venue Operators Must Exercise An Abundance Of Caution Source: Constellation Research, Inc. Ambient Experience Summit 2020 Atlanta Amidst the backdrop of coronavirus fears and the spread of COVID-19, event organizers, large venue promoters, and major league sports teams, must make the tough decisions on whether or not to host their events […]
By The Constellation Research Team Awards Showcase What Was Top Of Mind In Enterprise Technology At The End of The Decade This year the Constellation Research team attended over 270 events, engaged in 1000’s of inquires and briefings, conducted 1000’s of media inquiries, and almost touched 1 billion impressions in the social sphere. As disruptive […]
With a new decade in front of us, what happens when the confluence of politics, economics, society, technology, environmental, and legislative forces meet the forces of humanity? Here are seven deep trends that will emerge to impact the next decade and more: 1. Human Ingenuity vs Intelligent Automation In a world of AI possibilities and […]
Einstein Everywhere In Every Cloud And Every Industry Dreamforce 2019 kicked off to 171,000 on-site attendees and over 13 million online viewers. Sessions packed in at Moscone Center and the surrounding hotels were bursting at the seems, even with Howard Street shut down as the HQ for the Dreamforce National Park. The event often known […]
Written with Nicole France @lnfrance Customer 360 Mantra Manifests In The Customer Data Platform Over 12,000 customers from 40+ countries convened at Chicago’s McCormick Center for the annual Salesforce Connections conference. Stephanie Buscemi, CMO, welcomed the audience and key customers such as Conagra, Indiana Pacers, and State Farm to the stage. Key highlights from the […]
