Market Trends: software published by Ovum, Ltd. in February, 2008. This report price starts from US $ 1400.
Abstract
Spending to save
Some software vendors have muddied the cost-benefit argument for software with
highly questionable RoI studies. Despite this, there are many software
projects where there are very clear cost benefits. The right software properly
applied really can help user organisations to save money.
Server and storage virtualisation are good examples of a project that can
produce considerable savings. They do this because they make far better use of
server capacity so enabling a reduction in servers and even entire data
centres. This type of project is therefore highly likely to get the go-ahead
from management provided the costs are reasonable. Many business applications
also produce savings, for example by increasing process efficiency. However,
this is an area where business cases are very complex and poorly represented
by simplistic RoI studies.
Governance, risk and compliance
Governance, risk and compliance (GRC) remains a big area for concern in
organisations of all sizes. Indeed the overall area is very much ‘job
never done' . Financial services is the most obvious area where there is a lot
of government and public scrutiny, and it would be reasonable to expect more
to emerge from the aftermath of Northern Rock' s difficulties.
However, there are plenty of other areas where there are mounting demands for
businesses to be able to document their processes. It is not enough to be
doing the right thing, management has to be able to document that it took the
right action, so that even if things do go wrong, it can limit the legal
fall-out and avoid charges in the press of negligence.
GRC initiatives lead to some software purchases, but software is no panacea.
Indeed, the main solution is good management practices. Software works best
when used to enforce these good practices and then record and archive the
evidence that they have been followed.
Version updates
Most users want to keep on current (or nearly current) versions of the
software. Software vendors use their maintenance policy to drive upgrades for
recalcitrant customers. ‘Mainstream maintenance' is generally available
for around three to five years at the standard rate (around 20% of the
full-price licence cost). As products go beyond the ‘mainstream' period,
maintenance gets progressively more expensive as the versions get further out
date. Eventually maintenance becomes available only on a custom basis, and
updates/fixes to the software have to be specially developed at extra cost.
Table of Contents
EXECUTIVE SUMMARY
SCOPE
- EXAMINING THE STATE OF THE UK MARKET
DEMAND-SIDE TRENDS
- ECONOMIC SLOWDOWN LIKELY
- SOFTWARE WILL SEE THE SHARPEST REDUCTION IN GROWTH
- MORE SAAS
- QUICKER IMPLEMENTATION TO REDUCE COSTS
- SPENDING TO SAVE
- GOVERNANCE, RISK AND COMPLIANCE
- VERSION UPDATES
- NON-DISCRETIONARY SOFTWARE SPENDS
- PUBLIC SECTOR PROVIDES A (SHORT-TERM) LIFT
- STILL OPPORTUNITIES IN FINANCIAL SERVICES
SUPPLY-SIDE TRENDS
- A GOOD YEAR OF GROWTH FOR SOFTWARE VENDORS
- FEWER ACQUISITIONS OF SOFTWARE COMPANIES?
- SOA - SO WHAT?
- BATTLE FOR THE MID-MARKET
MARKET FORECASTS: ENTERPRISE SOFTWARE
- MARKET COMPOSITION
- ALL CHANGE IN 2008
- PROSPECTS FOR 2009 TO 2011
RECOMMENDATIONS
- PLAN FOR MARKET CHANGES
- LOOK FOR ACQUISITIONS
- BUSINESS VALUE NOT TECHNOLOGY
- MAKE ROI STUDIES REALISTIC
- FIGURE 1 UK SOFTWARE MARKET SIZE AND GROWTH
- TABLE 1 UK SOFTWARE MARKET SIZE (£ BILLION)
- TABLE 2 UK SOFTWARE MARKET GROWTH (%)
