The software industry is in the midst of significant change. Cloud, software-as-a-service (SaaS), mobile devices, and consumerization of IT, are changing how software vendors develop, market, sell, distribute and support their products. This report ranks leading software companies from key markets around the world, and shares insights into where the industry is going from executives from Adobe, BMC Software, CollabNet, Jive Software, NetSuite, Red Hat, SAP, SAS, Splunk, and TSIA.
Although the traditional license model will be around for years to come, it is slowly losing its dominance to SaaS and subscription models. Most large, traditional software vendors are moving toward SaaS and will be faced with significant challenges as they make the transition.
The shift in enterprise software sales from license to services is amongst the most significant upheavals the industry has seen. Regardless of how quickly, or slowly, companies make the transition to SaaS, the evolution is extremely stressful, creating a number of dilemmas for the vendor. A migration to SaaS is likely to affect profitability, internal organisation, management, budgets and customer relationships.
Because enterprise customers increasingly pursue hybrid IT models, most large software vendors are likely to offer licensing and some kind of subscription model for some time to come.
The mix of models, particularly the shift to SaaS, also impacts profit margins. In fact, recent studies of the profitability of mature license models and emerging SaaS models by PwC find best-in-class SaaS models only generate one-fourth the profitability of best-in-class license models.
Read the complete analysis and learn how software companies are transitioning to SaaS.
Global software 100
|Company||Country HQ||SaaS Revenue as % of Software Revenue||2011 SaaS Revenue ($M)||2011 Software Revenue ($M)|
Global software 100
|Company||Country HQ||2011 SaaS Revenue ($M)||2011 Software Revenue ($M)||SaaS Revenue as % of Software Revenue|