The majority of 22 publicly traded software vendors demonstrated solid year-over-year (YoY) quarterly growth from Q2 2009 (see Figure 1). Every SaaS vendor in the Software Insider Index® drove 14% to 26% growth (see Figure 2) despite the pick up in on-premises license sales. Highlights for the 2010 CY Q2 2010 results:
On-Premises Trends
- JDA Software (59.19%) and Manhattan Associates (32.93%) continue to ride the CPG, retail, and supply chain investment wave. Manhattan solidified a significant turnaround in 2 quarters of growth.
- Large mega vendor bellwethers Oracle (12.95%) and SAP (12.34%) showed significant double digit growth. SAP’s license gains of 17.31% demonstrate a turnaround in the sales team. All indications point to BOBJ and the non-EMEA regions driving sales growth.
- The SMB vendors shared mixed results with Epicor (8.68%), Lawson (5.81%), and CDC Software (3.92%) continuing to grow key license revenues. While IFS total revenue gains were low in the 1.40%, IFS grew license revenue by a whopping 19.77%.
- Unfortunately, other SMB vendors Exact (-4.99%) and Deltek (-7.07%) showed negative revenue momentum. These vendors not only lost ground in license revenue but also saw declines in traditionally stable maintenance revenue.
- Maintenance fee growth remains healthy for most vendors as new programs to show value to customers gain traction.
SaaS Trends
- SaaS vendors continue to grow in mid to high double digit growth rates for subscription revenue. SuccessFactors (26.81%), Salesforce.com (24.78%), and Concur (20.49%) moved past 20% year over year quarterly growth.
- Ariba ($93.2M) nears the $100M per quarter revenue benchmark as Blackboard ($101.5M) continues to grow from this achievement in Q1 2010.
- RightNow (19.58%), NetSuite (16.83%), Ultimate Software (15.67%), and Taleo (14.63%) all showed solid quarters of growth, though these growth percentages show slight declines.
- Figure 1. Software Insider Index® On Premise Vendors: Q2 CY 2010
- (Right click to view full image)
- Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.
- Figure 2. Software Insider Index® SaaS Vendors: Q2 CY 2010
- (Right click to view full image)
- Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.
- The Bottom Line – IT Budgets Have Opened Up For Software Purchases, Hybrid SaaS Models The Norm
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