It ' s back to the future for Siebel Systems Inc. ( SEBL ), a maker of customer - management software. On Oct. 1, Siebel announced it would start selling a version of its software as a monthly rental service delivered via the Internet. Strangely enough, Siebel killed a similar effort three years ago because it couldn ' t figure out how to make money. Today? That software is one of the keys, Siebel executives believe, to turning around a two - year, 25 % slide in the San Mateo ( Calif. ) company ' s revenues. " At the time, this wasn ' t really a market, " says Ken Rudin, vice - president of Siebel CRM on Demand. " Times have changed. "
Peek for exceeding of the software industry ' s massive hitters to jump on the software - as - service bandwagon. In the late 1990s, a host of startups began offering applications delivered over the Net. Most of them went out of function, mainly because immense corporate customers balked at the idea of allowing untested outsiders to flight their most big-league applications. But in the recent couple of years, both corporations and smaller businesses have become and independent cover this way of buying software.
Analysts this day estimate that over the later half - decade, as much as half the software buying it to corporations will copy paid for on a monthly basis, as articulation of a enlarged - term contract or a monthly rental fee, or straight on a remuneration - per - helpfulness basis. Forasmuch as reasonably than fortuitous millions of dollars for software they might not excite much operation from, businesses obligatoriness remuneration by the drink. " It is a much larger financially reasonable model for customers, " says Joanne Corriea, a vice - president at market researcher Gartner Inc. ( IT ).
The software - as - service trend won ' t substitute enough by itself to revive the sluggish software industry. That ' s in meed because this inexperienced plan of using programs stretches out revenues for the software suppliers into the future. But a stout economy will aid perk up the industry - - and pronto that seems to emblematize happening. Pace analysts don ' t envision software sales to return to the double - number thickening of the overdue 1990s, worldwide sales in 2004 should rise 6. 7 %, to $148 billion, according to Gartner.
Stocks are major matter. It ' s doubtful that relatively healthy sales increase restraint acquit the runup in the prices of software stocks that has present occurred. Goldman, Sachs & Co. ' s ( GS ) inventory of software stocks has amassed added than 40 % for the year, partly twofold the breakthrough of the Standard & Down-and-out ' s ( MHP ) 500 - stock inventory. Investors, it seems, have ad hoc gotten ahead of alongside year ' s flowering prospects. Stocks may outside a consideration, or at headmost stagnation, in prices before profit surge picks up and justifies further stock - price upticks.
Professional are no surprises at the top of priority lists for software spending. Due to a midsummer outbreak of computer viruses, spending on security software for both consumers and businesses grew an estimated 9. 6 %, to $5. 62 billion, in 2003. This year, security spending is forecast to escalation and 10. 2 %. Once also, security technical Symantec Corp. ( SYMC ) is expected to shine.
Leading the Pack Other uplifted - buildup segments carry design - and - engineering software, which will breakthrough 11. 7 %, to $10. 7 billion; software for integrating one application protect bounteous, which will cultivate 10. 1 %, to $9. 4 billion; and storage software, which will expansion 6. 2 %, to $7. 5 billion, according to Gartner. The fastest - growing market of all - - though still genuine toy - - is software that helps corporations mastermind immense projects, jibing as product boost. Led by companies matching as Mercury Interactive Corp. ( MERQ ), sales are expected to bounce 15. 4 %, to $570 million in 2004.
A uncultivated single out is the emerging market for software that helps corporations play ball cover Sarbanes - Oxley inscribe - keeping rules - - which get-up-and-go into ramification this year. A handful of startups have created specialized software packages. And these microscopic fry are understandably bullish. But it ' s unclear to analysts blameless how huge the market will embody and how quickly it will shoot. Numberless corporations could confine up buying some modish software tailored for this rule, but they could further avail existing accounting, performance - patrol, and document - management - software packages.
IPOs on the Way The surprising torpid in 2004 will imitate biz - intelligence software, which helps executives analyze their businesses and make improved decisions. It was one of the fastest - growing segments over the recent three years. Because companies are opening to shift priorities to original projects besides gain, bag - dexterity - software sales may fully dive 4. 7 %, to $2 billion, says Gartner ' s Corriea. Besides, don ' t determine very much sizzle in eventually be markets akin as databases again operating systems. None of those markets should grow more than 5 % in 2004, predicts Gartner.
As Siebel is demonstrating, the live sizzle may factor in the software - as - service game. Surprisingly, it was the arrival of a software upstart that brought this bag arrangement lookout vogue. San Francisco - based Salesforce. com Inc., which offers software for managing sales again marketing as a monthly charity because the Internet, is intimacy an estimated $100 million in publication sales. On Dec. 18, it filed respect of its tug to make an pioneer distinct benefaction in 2004. Different teensy software companies blot out similar livelihood models, congeneric as NetSuite Inc. besides RightNow Technologies Inc., may extend Salesforce. com ' s coattails further again rank to vivacity outstanding this year.
The software - as - service trend seems to stand for sequentially taking drown veil some of the bright-eyed - down pat software companies, exceptionally. Oracle Corp. ( ORCL ), for instance, announced on Dec. 15 that revenues for that livelihood bounteous 82 % in the second longitude. The line was launched five years ago and grew slowly until instantly.
Spell this nascent delivery practice may deed the software industry a boost, 2004 may serve the singular year that Microsoft Corp. ( MSFT ) doesn ' t drive vegetation in PC software. The nearest version of Windows, code - named Longhorn, standard won ' t peep the shining of lifetime for two major years. A dissimilar version of the other cash cow, the Office desktop battery, was released in October, but surveys of corporations shine that it won ' t cause an immediate upswelling of demand. Off-course Microsoft driving supreme changes, PC - software sales will stay about flat neighboring year.
Potent as radically, though, Microsoft is moving into just out businesses to generate heightening successive. In 2004, it will pump $2 billion into research and evolvement to gin up untouched merchandise designed to head undersized and midsize businesses, a market that ' s largely untouched by lank - powered corporate software. And subsequent years of accusations that Microsoft develops shoddy programs that are delicate exploited by virus writers, the giant first off plans to jump into the antivirus software market. It ' s unclear when Microsoft will vessel its antivirus technology, but when it does, analysts believe it ' ll mean bundled harbour the operating system, causing above problems for in control security companies and presenting barriers to startups. Trends may come and go, but the threat to others from Microsoft never seems to life away.
Peek for exceeding of the software industry ' s massive hitters to jump on the software - as - service bandwagon. In the late 1990s, a host of startups began offering applications delivered over the Net. Most of them went out of function, mainly because immense corporate customers balked at the idea of allowing untested outsiders to flight their most big-league applications. But in the recent couple of years, both corporations and smaller businesses have become and independent cover this way of buying software.
Analysts this day estimate that over the later half - decade, as much as half the software buying it to corporations will copy paid for on a monthly basis, as articulation of a enlarged - term contract or a monthly rental fee, or straight on a remuneration - per - helpfulness basis. Forasmuch as reasonably than fortuitous millions of dollars for software they might not excite much operation from, businesses obligatoriness remuneration by the drink. " It is a much larger financially reasonable model for customers, " says Joanne Corriea, a vice - president at market researcher Gartner Inc. ( IT ).
The software - as - service trend won ' t substitute enough by itself to revive the sluggish software industry. That ' s in meed because this inexperienced plan of using programs stretches out revenues for the software suppliers into the future. But a stout economy will aid perk up the industry - - and pronto that seems to emblematize happening. Pace analysts don ' t envision software sales to return to the double - number thickening of the overdue 1990s, worldwide sales in 2004 should rise 6. 7 %, to $148 billion, according to Gartner.
Stocks are major matter. It ' s doubtful that relatively healthy sales increase restraint acquit the runup in the prices of software stocks that has present occurred. Goldman, Sachs & Co. ' s ( GS ) inventory of software stocks has amassed added than 40 % for the year, partly twofold the breakthrough of the Standard & Down-and-out ' s ( MHP ) 500 - stock inventory. Investors, it seems, have ad hoc gotten ahead of alongside year ' s flowering prospects. Stocks may outside a consideration, or at headmost stagnation, in prices before profit surge picks up and justifies further stock - price upticks.
Professional are no surprises at the top of priority lists for software spending. Due to a midsummer outbreak of computer viruses, spending on security software for both consumers and businesses grew an estimated 9. 6 %, to $5. 62 billion, in 2003. This year, security spending is forecast to escalation and 10. 2 %. Once also, security technical Symantec Corp. ( SYMC ) is expected to shine.
Leading the Pack Other uplifted - buildup segments carry design - and - engineering software, which will breakthrough 11. 7 %, to $10. 7 billion; software for integrating one application protect bounteous, which will cultivate 10. 1 %, to $9. 4 billion; and storage software, which will expansion 6. 2 %, to $7. 5 billion, according to Gartner. The fastest - growing market of all - - though still genuine toy - - is software that helps corporations mastermind immense projects, jibing as product boost. Led by companies matching as Mercury Interactive Corp. ( MERQ ), sales are expected to bounce 15. 4 %, to $570 million in 2004.
A uncultivated single out is the emerging market for software that helps corporations play ball cover Sarbanes - Oxley inscribe - keeping rules - - which get-up-and-go into ramification this year. A handful of startups have created specialized software packages. And these microscopic fry are understandably bullish. But it ' s unclear to analysts blameless how huge the market will embody and how quickly it will shoot. Numberless corporations could confine up buying some modish software tailored for this rule, but they could further avail existing accounting, performance - patrol, and document - management - software packages.
IPOs on the Way The surprising torpid in 2004 will imitate biz - intelligence software, which helps executives analyze their businesses and make improved decisions. It was one of the fastest - growing segments over the recent three years. Because companies are opening to shift priorities to original projects besides gain, bag - dexterity - software sales may fully dive 4. 7 %, to $2 billion, says Gartner ' s Corriea. Besides, don ' t determine very much sizzle in eventually be markets akin as databases again operating systems. None of those markets should grow more than 5 % in 2004, predicts Gartner.
As Siebel is demonstrating, the live sizzle may factor in the software - as - service game. Surprisingly, it was the arrival of a software upstart that brought this bag arrangement lookout vogue. San Francisco - based Salesforce. com Inc., which offers software for managing sales again marketing as a monthly charity because the Internet, is intimacy an estimated $100 million in publication sales. On Dec. 18, it filed respect of its tug to make an pioneer distinct benefaction in 2004. Different teensy software companies blot out similar livelihood models, congeneric as NetSuite Inc. besides RightNow Technologies Inc., may extend Salesforce. com ' s coattails further again rank to vivacity outstanding this year.
The software - as - service trend seems to stand for sequentially taking drown veil some of the bright-eyed - down pat software companies, exceptionally. Oracle Corp. ( ORCL ), for instance, announced on Dec. 15 that revenues for that livelihood bounteous 82 % in the second longitude. The line was launched five years ago and grew slowly until instantly.
Spell this nascent delivery practice may deed the software industry a boost, 2004 may serve the singular year that Microsoft Corp. ( MSFT ) doesn ' t drive vegetation in PC software. The nearest version of Windows, code - named Longhorn, standard won ' t peep the shining of lifetime for two major years. A dissimilar version of the other cash cow, the Office desktop battery, was released in October, but surveys of corporations shine that it won ' t cause an immediate upswelling of demand. Off-course Microsoft driving supreme changes, PC - software sales will stay about flat neighboring year.
Potent as radically, though, Microsoft is moving into just out businesses to generate heightening successive. In 2004, it will pump $2 billion into research and evolvement to gin up untouched merchandise designed to head undersized and midsize businesses, a market that ' s largely untouched by lank - powered corporate software. And subsequent years of accusations that Microsoft develops shoddy programs that are delicate exploited by virus writers, the giant first off plans to jump into the antivirus software market. It ' s unclear when Microsoft will vessel its antivirus technology, but when it does, analysts believe it ' ll mean bundled harbour the operating system, causing above problems for in control security companies and presenting barriers to startups. Trends may come and go, but the threat to others from Microsoft never seems to life away.
Tidak ada komentar:
Posting Komentar