services resource planning market update
DESCRIPTION
A short SRP overview and update delivered as a part of the Keynote at the Netsuite / OpenAir user conference 10/28/2009TRANSCRIPT
10-09 © 2009 IDC Copyright 2009 IDC
Michael Fauscette, Group Vice President, SBS
10-09 © 2009 IDC
Where We Stand
2
Crisis – Impact Where’s the bottom?
How / when do we recover? Fundamental changes
Consumption models Structural change Innovation
10-09 © 2009 IDC Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
SW Applications Forecast Changes
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
2008 2009 2010 2011 2012
2008 (Early) 2008 (Dec) 2009 (Jan) 2009 (May)
10-09 © 2009 IDC
WW SaaS Market Revenue: 2006-2012
Source: IDC, 2009
WW SaaS market will expand rather than contract during the ongoing economic crisis – 42% YoY growth in 2009
Net new customer growth slowed in 2H08, but SaaS vendors expanded deeper into their bases (e.g. salesforce.com added only 12% more customers, but grew “subscribers” by 39% and top-line revenue by 36% in Q109 and 41% in Q209)
Traditional factors of looking to software to reduce business costs, automate processes and improve competitiveness persist (overall 09 WW applications spend +344%) but most customer see that SaaS provides par functionality and more value
CAPEX restrictions have clearly shifted spending for process-driven software purchases to LOB, which have overwhelmingly turned to SaaS
4,250 6,032
8,636
11,921
15,664 17,656
19,831
0
5,000
10,000
15,000
20,000
25,000
2006 2007 2008 2009 2010 2011 2012
WW SaaS Revenue ($m)
6,995
94 1,001
250 296
2008 SaaS Regional Segmentation North America
Latin America
EMEA
Asia/Pacific (- Japan)
Japan Total market is $8.63 billion
14,021 273
4,126
603 807
2012 SaaS Regional Segmentation
North America
Latin America
EMEA
Asia/Pacific (- Japan)
Japan Total market is $19.83 billion
2007-12 CAGR: 18.5%
10-09 © 2009 IDC
Services Resource Planning Forecast
Growth 8.4% 12.1% 12.6% 11.5% 10.8%
10-09 © 2009 IDC
A Little History
6
Manufacturing Resource Planning (MRP)
Enterprise Resource Planning (ERP)
PRODUCT
finance
etc.
customer employee
supply chain
mfg
10-09 © 2009 IDC
A Little History
7
Enterprise Resource Planning (ERP)
Professional Services Automation (PSA)
PROJECT
finance
etc.
customer resources
sales
delivery
Services Resource Planning (SRP)
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Business Challenges
8
Economy Commoditization & profit pressures
Competition Pricing Execution
Project & resource management
Talent acquisition & retention
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Business Challenges
9
Managing complexity Contracts Rev-rec Visibility
End-to-end business process Purpose built
10-09 © 2009 IDC Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
SRP
Analytics
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Michael Fauscette [email protected] Twitter: @mfauscette Blog: www.mfauscette.com
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