Corporate Software Spending: 90 Day Outlook

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ChangeWave Research: Corporate Software Purchasing Trends


This infor
mati
on is from ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.




Corporate
Software
Spending
: 90 Day Outlook

Tougher Times
Hit

Software

as

Corporate
Spendin
g
Tightens


Jean Crumrine

and Paul Carton


Overview:

After six consecutive quarterly increases
, ChangeWave’s
latest
corporate
software survey
shows

a
tightening

in business
spending going forward.
Moreover, t
he July
7
-
20 survey shows the
slowdown

in spending growth

hitting

virtually
all major software
categories.


Some of the slowdow
n is seasonal

in nature
. In the summers of 2006 and 2007 (prior to the
recent
recession
)
we

also
saw

spending decelerate

in
our corporate software surveys. And
the
drop in 2006
was even more drama
tic than what we’re seeing now
. (See chart b
elow.)


In addition
, despite
the
tightening
,

the
overall
spending outlook
is
significantly

str
onger
today
than
it was a year ago
,

and

most

categories


including
Data Storage
,

Virtualization
,
BI
and
CRM



still show

positive

growth

(
though

not as much

as
they did

three months ago
)
.


Nonetheless, the current
results
reveal

U.S. business spending is

weakening

this summer

at
the

same time as U.S. consumers
have been

pulling

back (see
July Consumer Survey

results)


a

tougher situation for the economy than
we were seeing
just a couple of months
ago
.


A total of 1,
615

respondents involved with software
purchasing in their company
participated in the
July
ChangeWave
survey
.



Software Spending Outlook


A total of 1
8
% of respondents now say their company will spend
less

on software over the
next 90 days,
5
-
pts worse than

the previous survey in April. Onl
y 1
4
% say they’ll spend
more


6
-
pts worse than previously.




August 3
, 2010

ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

2

T
he spending decrease is occurring across companies of all sizes


although the
percentage of respondents projecting
more

s
pending
is
highest among large
-
sized firm
s

(over 1,000 employees)
an
d
lowest among companies with 10 employees or less.


Here
is
the software spending

outlook broken down by

company size:




Capital Budgets.

W
e asked
respondents
if there have

been any adjustments to their
company’s third quarter cap
ital

budgets


and here

too we find

bumpiness
.

One
-
in
-
five
(21%) say their company’s cap budget adjusted
lower

ov
er the past 90 days


5
-
pts
worse

than
in
April. Just 1
1
% say their cap budget increased



also
2
-
pts worse than previously.




Software Categories
Going Forward



A key focus of this quarterly

survey is on corporate spending increases and decreases
within specific software categories.


We note that all software categories in this survey registered a
tightening

in terms of next 90
day spending.

But
d
espite this
,

most

categories


including
Data Storage
(+9; down 7
-
pts),
Virtualization

(+9; down 5
-
pts),
Business Intelligence

(+7; down 7
-
pts), and
CRM
(+6; down
4
-
pts)



are
still
show
ing

some
positive

growth going forward,
though not as much as they
did

three months

ago
.


Here’s a

closer look at specific
categories:

ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

3

Data Storage Software.

For the first time

in nearly two years,
Data Storage
software is
registe
ring a slowdown in spending growth, although

the net projection remains positive
. A
total of

1
9
% of respon
dents say their company is increasing its Data Storage spending
over
the next 90 days
while
10% say it’s decreasing


down
a net
7
-
pt
s

since April.




Virtualization Software
.
Virtualization

spending is also
weak
ening for the first time in
several quarte
rs, although overall growth remains positive
.
A total of 1
8
% say their
company is increasing
Virtualization

spending and
9
%

say it’s
decreasing


a net
5
-
pt drop
.





Business Intelligence/Reporting and Analytics

Software.
Just 15% say their company
is
increasing its
BI
software spending and 8% say it’s decreasing


a net 7
-
pt drop.



ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

4

Customer Relationship Management (CRM) Software.

S
pending on Customer
Relationship Management Software (CRM) also rema
ins positive going forward,
but as the
following cha
rt shows

the rate of increase is down 4
-
pts since April.




Similarly,
B2C e
-
Commerce

(+2; down 3
-
pts)
,
B2B e
-
Commerce

(+1;
down 3
-
pts) and
Enterprise

Content Management
(+1; down 6
-
pts
)

are weaker going forward
,

although

overall growth remains positive.



Supply Chain Management (SCM) Software.
After moving into positive territory last
quarter,
Supply Chain Management
software has
once again
slipped back into
negative
growth
. Only
9
% say their SCM

software spending is increasing going forward

while 11%
say it’s decreasing


a net
5
-
pt

drop
.




Enterprise Resource Planning

(0; down 4
-
pts)

had also
gone

positive
in the previous survey,
but is now

flat going forward.


Key Reasons Behind
Spending


Every quarter we ask

software buyers to tell us the key re
asoning behind their company’s
softwa
re spending plans going forward
.

Two reasons stand out this quarter



and
both point
to
wards

an increasingly bumpy
corporate spending environment:




A total of

1
4
% cite a
general slowdown in business conditions and capit
al budgets
as the
factor most driving their company’s
software purchasing decisions. T
his is 3
-
pts
worse
than
in
our
April

survey (although still

7
-
pts better than a year ago
)
.


ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

5



In a
nother sign of slower spending
, 29% report their company
currently doesn’t

need to
purchase any new software


3
-
pts worse

than in April.


Software Vendors: Next 90 Days


At the corporate software vendor level, the survey shows the growth rate beginning to slow
going forward for several large and medium sized companies, includin
g Microsoft (
-
5),
VMware (
-
4), Oracle (
-
3) and EMC (
-
3).





Note that while
Microsoft

(MSFT; +11
-
pts) remains the number one vendor in terms of
corporate software spending for the next 90 days, its growth rate going forward has
registered a 5
-
pt decline
since the April ChangeWave survey.





Similarly, corporate spending for
VMware

(VMW;
-
4
-
pts), a subsidiary of EMC, also remains
positive going forward, but VMware’s growth rate is down a full 4
-
pts compared to April.




Bottom Line:
ChangeWave’s July sof
tware survey shows a
tightening

is

occurring in
corporate spending
going forwar
d, resulting in a slowdown in t
he growth rate
for

virtually all
major

software

categories.


Some of the slowdown is seasonal in nature, and despite the

current

tightening

the
overall
corporate software outlook is significantly stronger today than it was a year ago
.



Nonetheless, the

survey
results
reveal

U.S. business spending is weakening this summer at
the same time as U.S
. consumers
have been

pulling back


a tougher situat
ion for the
economy than we were seeing just a couple of months ago
.

ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

6

Summary of Key Findings






































The ChangeWave Alliance

is a group of
2
5
,
0
00 highly qualified business, technology, and medical professionals in leading c
ompanies of
select industries

credentialed professionals who spend their everyday lives working on the frontline of technological change.
ChangeWave surveys its Alliance members on a range of business and investment research and intelligence topics, collec
ts feedback
from them electronically, and converts the information into proprietary quantitative and qualitative reports.



Helping You Profit From A Rapidly Changing World



www.ChangeWave
Research
.com


A
ll Ca
tegories
Showing a Slowdown


But Most Still Registering
Some

Positive

Growth Going
Forward Led By:




Data Storage

(+
9
; down a
net
7
-
pts)



Virtualization (+
9
; down
a
net 5
-
pts)



BI (+
7
; down a net
7
-
pts)



CRM (+6; down a net 4
-
pts)


Othe
rs Have Turned Ne
gative
or Flat



SCM (
-
2
;
down

a net
5
-
pts)



ERP (0; down a net 4
-
pts)


What’s Driving
the
Spending
Slowdown?



1
4
%
cite
a

general slowdown
in business conditions
a
s
driving their company buying
decisions


3
-
pts

worse than
April survey



29% say company
current
ly
doesn’t need to purchase any
new software


also 3
-
pts
worse


Momentum Slows
Among Major
Software
Vendors


Microso
ft Shows Declining
Growth Rate



Microsoft
(+11; down 5
-
pts)


VMware

Growth Rate Also
Slows Going Forward



VMware

(
+3; down 4
-
pts)



O
ther
Major Vendors

Showing

a Slowdown in
Momentum



Oracle

(+1; down 3
-
pts)



EMC
(
-
1; down 3
-
pts)



Corporate Software
Spending Tightens


90 Day Outlook



18
% say their company will
spend
less

on software over
next 90 days



5
-
pts worse
than April



1
4
% say t
heir company will
spend
more



6
-
pts worse


3Q

Capital Budgets
Adjusting Lower



21% say the
ir company’s
capital budget has
adjusted
lower

over past 90 days


5
-
pts worse than previously



Only 1
1
% say
their
cap

budgets have increased


2
-
pt
s

worse


ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

7

Table of Contents


Summary of Key Findings

................................
................................
............................

6


The Findings

................................
................................
................................
..................

8



Over
all Software Purchasing Trends

................................
................................
..........

8



Software
Companie
s


................................
................................
...............................

1
7



A Closer Look at
the
Software Categories

................................
...............................

18


ChangeWave Research Methodology
................................
................................
........

2
6


Abo
ut ChangeWave Research

................................
................................
...................

2
6

ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

8

The Findings


Introduction:
After six consecutive quarterly increases, ChangeWave’s latest corporate
software survey shows a tightening in business spending going forward. Moreover, the July
7
-
20 survey shows the slowdown in sp
ending growth hitting virtually all major software
categories.


Some of the slowdown is seasonal in nature. In the summers of 2006 and 2007 (prior to the
recent recession) we also saw spending decelerate in our corporate software surveys. And
the drop in

2006 was even more dramatic than what we’re seeing now. (See chart below.)


In addition, despite the tightening, the overall spending outlook is significantly stronger
today than it was a year ago, and most categories


including
Data Storage
,

Virtualizat
ion
,
BI
and
CRM



still show positive growth (though not as much as they did three months ago).


Nonetheless, the current results reveal U.S. business spending is weakening this summer at
the same time as U.S. consumers have been pulling back (see
July Con
sumer Survey
results
)


a tougher situation for the economy than we were seeing just a couple of months
ago.


A total of 1,615 respondents involved with software purchasing in their company
participated in the
July ChangeWave
survey
.



Part I. Overall Sof
tware Purchasing Trends


Software Spending Outlook


A total of 18% of respondents now say their company will spend
less

on software over the
next 90 days, 5
-
pts worse than

the previous survey in April. Only 14% say they’ll spend
more


6
-
pts worse than pr
eviously.




Note that in

the summers of 2006 and 2007 (prior to the recent recession)
we also saw
spending decelerate in our corporate software surveys. And the drop in 2006 was even
more dramatic than what we’re seeing now.


ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

9

How would you characterize

your company's spending plans for software over the
next 90 days

compared to the previous 90 days?



Current

Survey

Jul ‘10

Previous

Survey

Apr ‘10

Previous

Survey
Jan ‘10

Previous
Survey

Oct ‘09

Previous
Survey

Jul ’09

We are planning to spend
more

for
software
compared to previous 90 days

14%

20%

18%

16%

12%

We are planning to spend
less

for software
compared to previous 90 days

1
8
%

13%

15%

18%

22%

There has been no change in spending plans
for software compared to previous 90 days

61
%

61%

62
%

60%

60%

Don't Know
/ Other

7
%

4%

6
%

7%

6%


T
he spending decrease is occurring across companies of all sizes


although the
percentage of respondents projecting
more

s
pending is highest among large
-
sized firms
(over 1,000 employees) and
lowest among companies wit
h 10 employees or less.


Here is
the

software spending outlook broken down by

company size:


Corporate Software Spending 90 Day Outlook


B
y Company Size





ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

10

Capital Spending


Thinking about your company's
overall

capital budget for
3r
d Quarter 2010, ha
ve
there been any adjustments made over the past 90 days?



Current

Survey

Jul ‘10

Previous

Survey

Apr ‘10

Previous

Survey

Jan ‘10

Previous

Survey

Oct ‘09

Previous

Survey

Jul ‘09

Yes, 3rd Quarter 2010 Capital Budget Has
Been
Increased

Over the Past 90 Day
s

1
1
%

13%

14%

10%

9%

Yes, 3rd Quarter 2010 Capital Budget Has
Been
Adjusted Lower

Over the Past 90 Days

21%

16%

21%

25%

30%

No, 3rd Quarter 2010 Capital Budget Has
Remained the Same


58
%

63%

58%

56%

54%

Don't Know

10
%

8%

8%

9%

8%


W
e asked
responden
ts if there have

been any adjustments to their company’s third quarter
cap
ital budgets


and here too we
find

bumpiness.

One
-
in
-
five (21%) say their company’s
cap budget adjusted
lower

ov
er the past 90 days


5
-
pts
worse

than
in
April. Just 1
1
% say
their

cap budget increased



also 2
-
pts worse than previously.





ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

11

Software Categories
Going Forward


A key focus of this quarterly

survey is on corporate spending increases and decreases
within specific software categories.


We note that all software cate
gories in this survey registered a
tightening

in terms of next 90
day spending.
But despite this, most categories


including
Data Storage

(+
9
; down
7
-
pts),
Virtualization

(+
9
; down
5
-
pts),
Business Intelligence

(+
7
; down
7
-
pts), and
C
RM
(+6; down
4
-
pts)



are
still show
ing

some positive growth going forward, though not as much as they
did three months ago.


Here’s a

closer look at specific
categories
:


Data Storage Software.

For the first time

in nearly two years,
Data Storage
software is
registe
ring a
slowdown in spending growth, although

the net projection remains positive
. A
total of

1
9
% of respondents say their company is increasing its Data Storage spending
over
the next 90 days while
10% say it’s decreasing


down
a net
7
-
pt
s

since April.




(Not
e that another 5
1
% say their Data Storage software spending will remain the same over
next 90 days while 21% say they aren’t purchasing at all but are considering it for the
future).


Virtualization Software
.
Virtualization spending is also
weak
ening fo
r the first time in
several quarters, although overall growth remains positive.
A total of 1
8
% say their
company is increasing
Virtualization

spending and 9
%

say it’s
decreasing


a net
5
-
pt drop
.


ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

12



Business Intelligence/Reporting and Analytics

Software
.
Just 15% say their company
is increasing its
BI
software spending and 8% say it’s decreasing


a net 7
-
pt drop.





Customer Relationship Management (CRM) Software.

S
pending on Customer
Relationship Management Software (CRM) also rema
ins positive goin
g forward, but as the
following chart shows

the rate of increase is down 4
-
pts since April.




ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

13

Similarly,
B2C e
-
Commerce

(+2; down 3
-
pts)
,
B2B e
-
Commerce

(+1; down 3
-
pts)

and
Enterprise

Content Management
(+1; down 6
-
pts
)

are weaker going forward
,

althoug
h
overall growth remains positive.


Supply Chain Management (SCM) Software.
After moving into positive territory last
quarter,
Supply Chain Management
software has
once again
slipped back into
negative
growth
. Only
9
% say their SCM

software spending is i
ncreasing going forward

while 11%
say it’s decreasing


a net
5
-
pt

drop
.




Enterprise Resource Planning

(0; down 4
-
pts)

had also
gone

positive in the previous survey,
but is now flat going forward.

ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

14

Here’s a look at the complete findings for all softwar
e categories:


SUMMARY OF SOFTWARE CATEGORY FINDINGS


And over the next 90 days, do you think your company's software spending in each
of the following areas will increase, decrease, or remain the same compared to the
previous 90 days?




Significant
Incre
ase

Slight
Increase

Remain
the
Same

Slight
Decrease

Significant
Decrease


Net

Diff

Score

Change

From

Previous

Survey

Not

Purchasing

in Next

90 Days,

BUT

Considering

for Future

Sourcing and Procurement

(n=735)

1%

8%

62%

8%

3%


-
2

-
1

18%

B2C e
-
Commerce
(Business to Consumer)
(n=686)

2%

9%

55%

7%

2%


+2

-
3

24%

B2B e
-
Commerce
(Business to Business)
(n=727)

1%

9%

57%

7%

2%


+1

-
3

24%

Customer Relationship
Management (CRM)
(n=862)

3%

12%

53%

6%

3%


+6

-
4

23%

Enterprise Resource
Planning (ERP) (n=778)

2%

8
%

60%

7%

3%


0

-
4

20%

Product Lifecycle
Management (PLM)
(n=648)

1%

6%

60%

9%

3%


-
5

-
4

22%

Virtualization Software
(n=873)

3%

15%

51%

7%

2%


+9

-
5

22%

Supply Chain Management
(SCM) (n=697)

1%

8%

60%

8%

3%


-
2

-
5

21%

Document and Enterprise
Content Man
agement
(ECM) (n=883)

2%

10%

55%

8%

3%


+1

-
6

22%

Data Storage Software
(n=1120)

3%

16%

51%

7%

3%


+9

-
7

21%

Business Intelligence/
Reporting and Analytics
(BI) (n=777)

3%

12%

55%

6%

2%


+7

-
7

22%



ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

15

Key Reasons Behind Spending


Every quarter we ask

so
ftware buyers to tell us the key reasoning behind their company’s
softwa
re spending plans going forward.

Two reasons stand out this quarter



and both point
to
wards

an increasingly bumpy corporate spending environment.


Looking at the following areas, whic
h one is most driving your software purchasing
decisions?



Current

Survey

Jul ‘10

Previous
Survey

Apr ‘10

Previous
Survey
Jan ‘10

Previous
Survey

Oct ‘09

Previous
Survey

Jul ‘09

We currently do not need to purchase any new
software

29%

26%

27%

26%

28%

E
xisting software is getting outdated and must
be replaced

2
3
%

26%

21%

20%

18%

General slowdown in business conditions and
capital budgets

1
4
%

11%

15%

17%

21%

A general improvement in business conditions
and capital budgets

8
%

10%

9%

9%

7%

Enhancing our
ability to innovate and develop
new products and services

7%

8%

9%

8%

8%

New software capabilities are accelerating the
replacement cycle

4
%

6%

6%

5%

5%

Improved customer service

4%

5%

4%

5%

4%

We are waiting for new technology
enhancements before purch
asing new software

4
%

4%

4%

4%

4%

New software is easier to use

2%

2%

2%

2%

1%

Other

4
%

3%

3%

4%

4%


A total of

1
4
% cite a
general slowdown in business conditions and capital budgets
as the
factor most driving their company’s
software purchasing decisio
ns. This is 3
-
pts
worse
than
in our
April

survey (although still 7
-
pts better than a year ago
)
.


In a
nother sign of slower spending
, 29% report their company
currently doesn’t need to
purchase any new software


3
-
pts worse

than in April.



ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

16

Expected Time
Period of Greatest Increase


We also asked respondents when they expect software spending in their company to show
the greatest increase.


In which time period do you expect
software

spending in your company to show the
greatest increase, compared to the
previous 90 days?




Current

Survey

Jul ‘10



Previous

Survey

Apr ‘10

3Q 2010 (Jul
-
Sep 2010)

8%


2Q 2010 (Apr
-
Jun 2010)

8%

4Q 2010 (Oct
-
Dec 2010)

14%


3Q 2010 (Jul
-
Sep 2010)

16%

1Q 2011 (Jan
-
Mar 2011)

16
%


4Q 2010 (Oct
-
Dec 2010)

17%

2Q 2011 (Apr
-
Jun 20
11)

11
%


1Q 2011 (Jan
-
Mar 2011)

12%

3Q 2011 (Jul
-
Sep 2011)

7
%


2Q 2011 (Apr
-
Jun 2011)

6%

4Q 2011 (Oct
-
Dec 2011)

5
%


3Q 2011 (Jul
-
Sep 2011)

3%

1Q 2012 or Later

11
%


4Q 2011 or Later

10%

Don't Know

29
%


Don't Know

27%


While
2
2
% say they expect their co
mpany
’s software spending

will show the greatest
increase in
either
th
is quarter

or next quarter


that’s
2
-
pt
s

less

than
our
previous survey in
April

(24%).



ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

17

Part
II
.
Software Vendors: Next 90 Days


At the corporate software vendor level, the survey sh
ows the growth rate beginning to slow
going forward for several large and medium sized companies, including Microsoft (
-
5),
VMware (
-
4), Oracle (
-
3) and EMC (
-
3).





Note that while
Microsoft

(MSFT; +11
-
pts) remains the number one vendor in terms of
corp
orate software spending for the next 90 days, its growth rate going forward has
registered a 5
-
pt decline since the April ChangeWave survey.





Similarly, corporate spending for
VMware

(VMW;
-
4
-
pts), a subsidiary of EMC, also remains
positive going forwa
rd, but VMware’s growth rate is down a full 4
-
pts compared to April.

Here’s a look at the complete findings

for
these
software vendors
:



L
ooking at your company's overall IT software and services spending plans for the
next 90 days
, please tell us if your

company will increase their spending with each of
the following vendors, decrease their spending, or will spending remain the same
over the next 90 days compared to the previous 90 days?



Increase

Decrease


Net

Score


Change
in

Net

Score


Remain

the

S
ame

Not

Purchasing

In Next 90

Days, But

Considering

for Future

Not

Purchasing

In Next 90
Days, and NOT

Considering

for Future/

No Answer

Oracle (ORCL)

4
%

3
%


+1


-
3


22%

8
%

63
%

EMC (EMC)

2
%

3
%


-
1


-
3


18%

8
%

68
%

VMware

(VMW)

7
%

4
%


+3


-
4


20%

10
%

60
%

Microsoft

(MSFT)

17
%

6
%


+11


-
5


37%

13
%

27
%


ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

18

Part III. A Closer Look at the Individual Software Categories


We also asked respondents about the specific types of software their company currently
uses within each category.


Data Storage



Which of the
following types of Data Storage software/services does your company
currently use?

(Check All That Apply)





Current

Survey

Jul ‘10

Backup/Recovery

88
%

Data Archiving

53
%

Backup Management

46
%

Continuous Data Protection (CDP)

27
%

Data Replica
tion

22
%

Disaster Recovery Assessment

20
%

Storage Resource Management (SRM)

17
%

High Availability/Clustering

15
%

Storage Performance Management

11
%

Information Lifecycle Management (ILM)

5
%

Storage Change Management

5
%

Don't Know

1
%


Types of Data Storage Software.

Among respondents currently using Data Storage
software, Backup/Recovery (8
8
%) is overwhelmingly
the
leading type used. Data Archiving
(5
3
%) comes in a distant second, closely followed by Backup Management (4
6
%).



ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

19

Cust
omer Relationship Management (CRM) software


Which of the following types of Customer Relationship Management (CRM) software
does your company currently use
-

(including CRM SaaS)? (Check All That Apply)



Current

Survey

Jul ‘10

Customer Services and Su
pport

48
%

Sales Force Automation

45
%

Analytics

22%

Marketing Automation

20%

Complete CRM Package

20
%

Partner Relationship Management

15
%

Integrated Call Center

15
%

Partner Opportunity Management

8
%

Don't Know

3
%

Other

6
%




Types of CRM Software
.
Among respondents who say their company currently uses CRM
software, Customer Services and Support (
4
8
%) and Sales Force Automation (4
5
%) are the
leading types used.

ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

20

Business Intelligence/ Reporting and Analytics (BI) software


Which of the following
types of Business Intelligence/Reporting and Analytics (BI)
software does your company currently use
-

(including BI SaaS)? (Check All That
Apply)



Current

Survey

Jul ‘10

Business Intelligence and Reporting Tools

79
%

Performance Management (e.g., Fin
ancial Planning & Budgeting)

50
%

Analytical Applications

42
%

Analytic Infrastructure (e.g. Data Warehouses, Integration)

35
%

Predictive Analytics/Data Mining

30
%

Don't Know
/ Other

2
%




Types of BI Software.
Among companies currently using

BI software, Business
Intelligence and Reporting Tools (
7
9
%)
is overwhelmingly
the
leading type used.
Performance Management (
5
0
%) comes in a distant second.



ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

21

Supply Chain Management (SCM) software


Which of the following types of Supply Chain Managemen
t (SCM) software does your
company currently use
-

(including SCM SaaS)? (Check All That Apply)



Current

Survey

Jul ‘10

Order Management

72
%

Supply Planning

56
%

Warehouse Management

48
%

Inventory Optimization

42
%

Demand Planning

41
%

Sales
and Operations Planning

39
%

Transportation Management

29
%

Global Trade Management

12
%

Don't Know

1
%

Other

2
%




Types of
SCM Software
.

Among respondents who say their company currently uses SCM
software, Order Management (
7
2
%) is the lead
ing type used. Supply Planning (5
6
%)
comes in second, followed by
Warehouse Management

(
48
%).

ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

22

Enterprise Resource Planning (ERP) software


Which of the following types of Enterprise Resource Planning (ERP) software does
your company currently use
-

(inc
luding ERP SaaS)? (Check All That Apply)



Current

Survey

Jul ‘10

Financial/Accounting

78
%

Human Resources

48
%

Order Management

39
%

Supply Chain Management (as part of
ERP package)

34
%

Procurement (as part of ERP package)

34
%

Manufacturing


27
%

Complete ERP Package

25
%

Don't Know / Other

1
%




Types of ERP Software
.
Among respondents currently using ERP software, Financial/

Accounting (7
8
%) is still overwhelmingly
the
leading type used. Human Resources (
48
%)
ranks a distant second.


ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

23

Document and Enterprise Content Management (ECM) software


Which of the following types of ECM software does your company/ organization
currently use
-

(including ECM SaaS)? (Check All That Apply)



Current

Survey

Jul ‘10

Document Management

72
%

Reco
rds Management and Archiving

51
%

E
-
Mail Management

46
%

Web Content Management

41
%

Transactional Content Management (incl.
imaging and output management)

20
%

Digital Asset Management

15
%

Don't Know

0
%

Other

1
%




Types of
ECM
Software
.
Among respondents who say their company currently uses ECM
software, Document Management (
7
2
%) is the leading type used. Records Management
and Archiving (5
1
%) comes in second, followed by E
-
Mail Management (4
6
%).







ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

24

Virtualization


In terms of vir
tualization, we asked respondents which enterprise applications/technologies
their company is currently running on virtual servers
.


Which of the following enterprise applications/technologies
-

if any
-

does your
company or organization currently run on
v
irtual servers

(e.g., servers running
VMware, Microsoft Hyper
-
V, Xen, etc.)? (Check All That Apply)



Current

Survey

Jul ‘10

Data Storage Software

51
%

Customer Relationship Management (CRM)

28
%

Document and Enterprise Content Management (ECM)

28
%

Busi
ness Intelligence/Reporting and Analytics (BI)

25
%

B2B e
-
Commerce (Business to Business)

21
%

Enterprise Resource Planning (ERP)

19
%

Sourcing and Procurement

16
%

Supply Chain Management (SCM)

14
%

B2C e
-
Commerce (Business to Consumer)

13
%

Product Lifec
ycle Management (PLM)

8
%

Other

12
%




Types of Virtualization Technologies.
Among respondents who say their company is
currently running applications on virtualization servers, Data Storage Software (5
1
%) is the
overa
ll leading type used. Other

types
in
use are
Customer Relationship Management
(28%),
Document and Enterprise Content Management (2
8
%), and Business Intelligence/

Reporting and Analytics (2
5
%).


ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

25

Cloud Computing


We
also
asked about the current use of cloud computing:


Public cloud comput
ing (i.e., "renting" or provisioning the
remotely hosted

computing resources of a service provider) can be broken down into three main
categories: Software as a Service (e.g., Salesforce.com), Platform as a Service (e.g.,
Google AppEngine), and Infrastruct
ure as a Service (e.g., Amazon EC2).




For each of the following areas, please tell us if your organization
currently

supports
applications running on Software as a Service (e.g., Salesforce.com), Platform as a
Service (e.g., Google AppEngine), or Infrast
ructure as a Service (e.g., Amazon EC2).
(Check All That Apply)



Software

as a

Service

(SaaS)

Platform

as a

Service

(PaaS)

Infrastrucure

as

a

Service

(IaaS)

Do Not
Support

Using
Cloud
Computing

Business Intelligence/

Reporting and
Analytics (BI)

17
%

6
%

4
%

40
%

B2B e
-
Commerce (Business to Business)

14
%

7
%

6
%

40
%

B2C e
-
Commerce (Business to Consumer)

10
%

5
%

6
%

41
%

Customer Relationship Management (CRM)

41%

6
%

3
%

26
%

Document and Enterprise Content
Management (ECM)

15%

12%

4
%

32
%

Enterprise Resou
rce Planning (ERP)

8%

2
%

1
%

45
%

Product Lifecycle Management (PLM)

3%

1
%

1
%

47
%

Sourcing and Procurement

8
%

2
%

1
%

44
%

Supply Chain Management (SCM)

6%

3
%

1
%

45
%

Other

8
%

5
%

3
%

10
%


Note that bolded results show an improvement of at least two percentag
e points over the
previous survey.

ChangeWave Research:

Corporate Software Purchasing Trends


This information
is from
ChangeWave Research

and contains confidential business information.

It may not be copied or distr
ibuted without permission. ©2010

ChangeWave Research. All rights reserved.

26

ChangeWave Research Methodology



This report presents the findings of
our latest
ChangeWave
Research

survey on
corporate
spending for software. The survey was
conducted
July

7
-
20
, 20
10

and a
total of 1,
6
1
5

respondents

i
nvolved with IT spending in their company participated.


ChangeWave's proprietary research and business intelligence gathering system is based
upon the systematic gathering of valuable business and investment information directly over
the Internet from acc
redited members.


The Research Network is assembled from senior technology and business executives in
leading companies of select industries.
More than half of members (53%) have advanced
degrees (e.g., Master's or Ph.D.) and 91% have at least a four
-
year
bachelor's degree
.


The business and investment intelligence provided by ChangeWave provides a real
-
time
view of companies, technologies and business trends in key market sectors, along with an
in
-
depth perspective of the macro economy


well in advance o
f other available sources.


About ChangeWave Research


ChangeWave Research, a subsidiary of InvestorPlace Media, LLC, identifies and quantifies
"change" in industries and companies through surveying a network of thousands of
business executives and profes
sionals working in more than 20 industries.


The ChangeWave

Research Network is a group of
2
5
,000 highly qualified business,
technology, and medical professionals


as well as early adopter consumers


who work in
leading companies of select industries. Th
ey are credentialed professionals who spend their
everyday lives on the frontline of technological change. ChangeWave surveys its Network
members weekly on a range of business and consumer topics, and converts the information
into a series of proprietary q
uantitative and qualitative reports.


ChangeWave delivers its products and services on the Web at
www.ChangeWaveResearch.com
.


ChangeWave Research does not make any warranties, express or implied, as to r
esults to
be obtained from using the information in this report. Investors should obtain individual
financial advice based on their own particular circumstances before making any investment
decisions based upon information in this report.


For More Informa
tion:


ChangeWave Research

Telephone: 301
-
250
-
2200

9201 Corporate Blvd.

Fax: 301
-
926
-
8413

Rockville, MD 20850

www.ChangeWaveResearch.com

USA

inquiries@change
wave.com



Helping You Profit From A Rapidly Changing World



www.ChangeWaveResearch.com






Hardes
t Hit
Softwa
re
Catego
ries



Decrease
d

Corporat
e
Spending

Next

90
Days



ERP (
-
11
)



ECM

(
-
9)



CRM

(
-
6)



Further
Sign the
Downturn
Isn’t
Over



Capital
Budgets
Adjusting
Lower



26% say
2Q cap
budgets
have
been
adjusted
lower
over
past 90
days



Only 8%
say cap
budgets
increase
d