SOFTWARE PARTNERING AND CHANNEL STRATEGY:  SELLING MODELS, REVENUE RATIOS SOFTWARE MARKET FORECASTS TO 2003

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REPORT NO.    A8034982675    230+ PAGES   70 TABLES AND FIGURES   1999  


     Software business sales strategy emphasizes the development of a targeted line of software products for business and personal use, marketed through multiple channels of distribution.  IBM, Microsoft, and Autodesk illustrate companies that have been extremely successful utilizing a partnering strategy for sales of product and product upgrades.

    OEM supply of software represents a significant means of software distribution.  Microsoft and a range of smaller companies have been particularly successful using OEM strategy to have hardware suppliers ship units with software preinstalled.

    Software products are highly targeted.  Platforms and applications product groups are responsible for a particular area of software development and marketing.  Platforms groups develop operating systems that are targeted by industry to PCs and servers by resellers.  Applications and tools groups create applications and software development products. The consumer platforms group develops system software for intelligent devices.

    Software sales organizations are responsible for building long-term business relationships with the channel and with large customers.  Groups are organized to serve various customer types, including original equipment manufacturers (OEMs), end-users, organizations, enterprises, application developers, Internet content providers (ICPs), and infrastructure owners.  Large enterprises offer tailored license programs, enterprise-wide support, consulting services, and other specialized services.

   

SOFTWARE PARTNERING AND CHANNEL STRATEGY:

SELLING MODELS, REVENUE RATIOS

SOFTWARE MARKET FORECASTS TO 2003

 

Market Parameters:  

 

Regional sales

Direct sales

National presence

OEM positioning

Dealers

Internet market presence

Resellers / VARs


Partnering represents a way to extend the customer base of a company.  Strategic partnering can rapidly extend market share and reach for a new product.  The implications of partnering are discussed in the context of more traditional distribution, direct sales, reseller, VAR, and OEM strategies for the software industry. 


The Study Addresses:

        Market strategies for partnering

        Strategic positioning of software companies

        Strategic market alliances / Market directions

        Risk/reward scenarios

        Access to customer bases


You NEED This Study

 


COMPANIES PROFILED

                                                                                                                                       

Aspect

AutoDesk

BEA

BMC

Candle

CHS Electronics

CompUSA

IBM

Ingram Micro

Inacom

Microsoft

Merisel

Netscape

New Era of Networks (Neon)

Oracle

Scopus Technology

Symantec

Tech Data

Wind River


 

REPORT OUTLINE

EXECUTIVE SUMMARY

Market definition and directions

Business Model                                                                                                                                                                

market Channel description

Indirect Sales Channels                                                                                                                                                 

Resellers                                                                                                                                                                           

Distributors                                                                                                                                                                      

OEM                                                                                                                                                                                  

Systems Integrators                                                                                                                                                         

Margins

Direct Sales

OrganizaTions

Commissions

Incentives                                                                                                                                                                          

Customer Support                                                                                                                                                           

Number of sales people                                                                                                                                                   

US                                                                                                                                                                                      

Rest of World

Training                                                                                                                                                                            

Strategic positioning

The value of partnering

Selected company partnering

Extending the customer base                                                                                                                                          

PARTNERING STRATEGY

Business Sales

Distribution

Leading Resellers

TeleSALES

Channels

Integration Services

COMPETITION

Internet Providers

Distributors and Resellers

Large Accounts

Systems Integration Providers

OEM Channel

MARKET FORECASTS

International Sales

Advertising

Low Margins

Distribution

Fragmented Markets

Products And Customers

Product Development

Trends

Wholesale Distribution Business

Market Momentum

Sales Costs

Cost Structure

Cost Of Revenue

SOFTWARE SALES MARKET DYNAMICS

Competition

Product Upgrades

Channel Mix

OEM Software Revenue Forecasts

COMPANY INITIATIVES

IBM E-Business Initiative

Microsoft

Organization Licenses

Sales, Marketing Investments.

Marketing And Distribution

Distributors, Resellers, OEM

Channel Strategy

Channel Revenue

Server Applications

Market Presence

Aspect Product Pricing

Symantec

Products

Sales And Marketing

International Distribution

BEA

BEA TUXEDO

Autodesk

Marketing and Sales

Shipments

SAP Industry Solutions

Aspect

Aspect Financials

Ingram Micro

Inacom

CHS Electronics

Tech Data Business Strategy

Balanced Product Mix

Customer Service

Sales Force

CompUSA

TECHNOLOGY

APIs

On-line Information System

CTI Technology

Distribution Centers

Technology Planning

Technology Procurement

COMPANY DESCRIPTIONS

Aspect

AutoDesk

BEA

Direct Sales

Product Sales

Implementation Cycle

BMC

Candle

Candle MQSeries Admin

CHS Electronics

CompUSA

IBM

Ingram Micro

Inacom

Microsoft

Merisel

Netscape

Marketing

Marketing On The Internet

Target Marketing

Netscape Distribution

Netscape Direct Sales

Netscape Telephone Sales

New Era of Networks (Neon)Oracle

Scopus Technology

Symantec

Tech Data

Wind river

PARTNERING STRATEGY

IBM Innovative  Partnering

Neon MQIntegrator

Microsoft partners

BEA Strategic Partner Relations

Autodesk

 

FRAMEWORKS AND PLATFORMS

Core Business

Marketing and Distribution

Certified Solution Provider programs

Software Customers

Customer Focus

Customer Feedback Loop

Branding

Value Of Logo

EAI Frameworks

Candle

CTI Frameworks

AVT

 


LIST OF TABLES AND FIGURES

Microsoft International Subsidiaries

Ratio of Sales and Marketing Employees to

     Total Employees,

Ratio of Sales and Marketing Employees to

     Total Employees, Industry,

Ratio of Sales and Marketing Expenditures to

     Total Revenue, 1998

Ratio of Sales and Marketing Costs to Sales and

     Marketing Employment

Ratio of Sales and Marketing Costs to Total

     Revenue, 1998

Ratio of Sales and Marketing Costs to Sales and

     Marketing Employment, Industry, 1998

Sales, Distribution and VAR Ratios, 1998

 

Software Industry Summary Market Forecast,

     1996-2003

Database Software Industry Summary Market

     Forecast, 1996-2003

Number of Software VARS and Resellers

VAR and Reseller Revenue, 1998-2003

OEM Software Revenue, 1998-2003

Regional Software Market Segments, 1998

IBM E-Business Offerings.

SymantecPrincipal Products

AutoDesk Hardware Partners

CompUSA State Stores

Candle Partnerships And Relationships

Candle MQSeries Admin Offering

 

Core businesses that support software partnering

Type of customers likely to buy application development tools

Targets for end-user sales and marketing

Infrastructure service providers

Selected distributors and resellers

Hardware PC OEM partners

Unified messaging used in customer service

Logo designation

Types of coupling between applications

Natural Microsystems CTI strategic product positioning

Natural Microsystems product capabilities


 

 


REPORT METHODOLOGY

This is the twentieth in a series of market analysis of software, operating system, middleware, telecommunications,  and information services.  The project leaders have significant experience preparing industry studies.  Forecasts are based on primary research and proprietary data bases.  In-depth interviews are conducted with a broad range of key participants in the market.  Studies are based on primary research.

 


 

about the company

            WinterGreen Research, founded in 1985, provides strategic market assessments in telecommunications, communications equipment, health care and advanced computer technology.  Industry reports focus on opportunities that will expand existing markets or develop major new markets.  The reports assess new product and service positioning strategies; new and evolving technologies; and technological impacts on products, services, and markets.  Market shares are estimated.  Leading market participants are profiled, and their marketing strategies, acquisitions, and strategic alliances are discussed.  The principals of WinterGreen Research have been involved in analysis and forecasting of international business opportunities in telecommunications and advanced computer technology markets for over 30 years.

about the principal authors

Ellen T. Curtiss, Technical Director, co-founder of WinterGreen Research, conducts strategic and market assessments in technology-based industries.  Previously she was a member of the staff of Arthur D. Little, Inc., for 23 years, most recently as Vice President of Arthur D. Little Decision Resources, specializing in strategic planning and market development services.  She is a graduate of Boston University and the Program for Management Development at Harvard Graduate School of Business Administration.

Susan Eustis, Vice President, co-founder of WinterGreen Research, has done research in communications and computer markets and applications.  She holds several patents in microcomputing and parallel processing.  She is the author of recent studies of the Regional Bell Operating Companies' marketing strategies, worldwide telecommunications markets, and of a study of Internet markets.  Ms. Eustis is a graduate of Barnard College.

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