Feeds

Top tier software vendors get toppier

Good big'uns rool, KO?

  • alert
  • submit to reddit

Top three mobile application threats

Further proof has emerged for the theory that the integrated software and service providers are gaining share on the specialist, point product providers. Dataquest has just completed its assessment of the market and concludes that, '...top-tier software vendors are gaining revenue share at the expense of the pure-play vendor'.

There are a multitude of reasons for this situation - top of the list as you might expect is the economy. In these days of weakened profit margins and slow to market projects, the top tier software vendors, Oracle, IBM, SAP, Microsoft, are better equipped to weather the storms. They have big old cash reserves to bolster the marketing efforts, squeeze the last drops of budget out of a flat market and a slew of products to sell.

The point product providers on the other hand are often finding themselves increasingly squeezed in a vertical market, but that doesn't explain why the customer would not vote for them. It seems that it's a simple vote of confidence. Point products are great but if you can have your preferred vendor deliver a suite of products, cheaper and faster, then they're going to win. Add into that the increased possibility that a point player is either going to go bankrupt or be acquired and suddenly the battle is looking rather one sided.

This has been an ongoing intellectual debate for years of course. Do customers want specialist, best of breed products that deliver far more than the alternative. Or the alternative, which is the over-arching solution from one vendor that touts generic, good products.

On the one hand, the argument rages, the best of breed products are obviously a better idea, they're more powerful and it's better than putting all of your eggs in one basket. Then there's the other side of the story which says that if you choose a solution provider you can get decent solutions quickly implemented.

The fact of the matter is, however, that people will choose a range of applications from a range of vendors but, increasingly, the solution providers are winning the lions share. It's been happening in the enterprise space for years of course - the SAP, Oracle Applications, IBM, cover all, finger in every pie approach. But the independents have always been able to stand up and say, my product is better. They probably still can though fewer people are listening.

That's not game over for the specialist product vendors. It's still a very large field out there. Worldwide spending on software through 2002 is expected to have grown to $76.9bn, a rise of 3.6% and could hit as much as $81bn through 2003, according to Dataquest.

© IT-Analysis.com

Combat fraud and increase customer satisfaction

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Brit boffins use TARDIS to re-route data flows through time and space
'Traffic Assignment and Retiming Dynamics with Inherent Stability' algo can save ISPs big bucks
Microsoft's Nadella: SQL Server 2014 means we're all about data
Adds new big data tools in quest for 'ambient intelligence'
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.