Transcript Document

Software Value Management
Fred Amoroso
President and CEO
Macrovision
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Dateline: 2008
SOFTWARE INDUSTRY ON THE BRINK?
MAJOR PRODUCERS DECLARE MASSIVE LOSSES
SHOW 1st VIDEO “DOOM & GLOOM”
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“Cut the Complexity”
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Market Dynamics
Vendor
Enterprise
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Market Dynamics
Vendor
Enterprise
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Market Dynamics
Vendor
Enterprise
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Market Dynamics
Vendor
Enterprise
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The Role of Software Value Management
Software
Software
Development
Management
Lifecycle
Management
Software Value Management
Software
Inventory
Management
Vendor
Enterprise
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The Role of Software Value Management
Vendor
Enterprise
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Building Blocks of
Software Value Management
Software &
Hardware
Vendors
Enterprise
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Sept 2005 SoftSummit Pricing & Licensing
Study….
Software &
Hardware
Vendors
Enterprises
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ISV’s are not Listening to Their Customers
SOFTWARE VENDOR vs. ENTERPRISE
Satisfaction with Pricing & Licensing Strategy
ISV
Enterprise
N=484
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To Get Off The WallStreet Tread Mill,
ISV’s Are Adopting Subscription Pricing
% Software Vendors Offering Subscriptions
43% of ISV’s “Want a more predictable revenue stream”
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…But Enterprises Still Prefer Perpetuals
ENTERPRISE:
Preferred Pricing Model
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…And They Prefer Concurrent Licenses
to Those Locked to a Person or Server
ENTERPRISE:
Preferred Licensing Model
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…And that preference is growing
ENTERPRISE:
Preferred Licensing Model
2004 vs. 2005
% Change in Enterprises
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SVM Success Stories
Software &
Hardware
Vendors
Enterprises
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Customer Agility
“Citrix customers enjoy an easy, streamlined
process to monitor, maintain and track software
licenses. Citrix eliminated costs associated with
complex licensing agreements and offers their
customers a wide range of flexible pricing
models.”
Harvey Tenen
Senior Product Manager
Citrix
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SVM Success Story
Software &
Hardware
Vendors
Enterprises
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Outstanding Out-of-the-Box Experience
“We wanted end users to have a user-friendly
install process while providing enterprise IT
departments with the advanced administrative
features they require. ”
John Senez
Director of Localization
Corel Software
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SVM Success Story
Software &
Hardware
Vendors
Enterprises
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Hiding Complexity & Improving Productivity
With our existing staff we migrated 100+
legacy applications to 600 machines in 72
hours…all without any interruption to our
customers. ”
Darrin Veit
Technologist II
Comcast Cable
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Software Value Management means…
 Cutting the Complexity
 Flexible systems & processes that enable
responsiveness to changing customer
demands
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SVM Ends The Complexity Crisis
Enterprises want….
 To buy only what they need
 Software that is painless to deploy & maintain
 Zero professional services (don’t mask your
complexity behind people)
 Software that “self-heals”
 Software that just works… right out of the box
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OCTOBER 10, 2008
SOFTWARE PROFITS TOP NASDAQ
SHOW 2nd VIDEO “GUSTO & GLORY”
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See SVM in Action
 Please visit the product showcases, listed
in your agenda
 A complete copy of the Pricing & Licensing
Report is available for download at:
www.softsummit.com
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METHODOLOGY & SAMPLE
Email Survey in September 2005
252 Software Vendors
232 Enterprises
– Typical titles were CEO, CMO, VP Product Marketing,
and VP Product Management
– Typical titles were CTO, VP
Development, and IT Director
– SIIA, 3rd party databases
– InformationWeek, 3rd party
databases
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Manage Complexity—Maximize Profits
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Focus on your core business
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3
Plan with change in mind
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2
–leverage third party experts for
non-core activities
–Build flexibility into product &
service architectures
Prioritize customer needs
3
–Ensure you’re investing in the right
places to be successful
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Manage Complexity—Minimize Costs
1
1
2
3
2
Optimize decision-making
–Look beyond data to find
information
Anticipate exceptions
–Avoid rigid processes
Align with key suppliers
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–Make sure they provide what
you need
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