Top tier software vendors

Further proof has emerged for the theory that the integrated software and service providers are gaining share on the specialist, point product providers.


Market Analysis

Top tier software vendors
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 $76.9 billion, a rise of 3.6% and could hit as much as $81 billion through 2003, according to Dataquest.


Copyright 2002 IT-Director.com provides IT decision makers with free daily e-mails containing news analysis, member-only discussion forums, free research, technology spotlights and free on-line consultancy. To register for a free email subscription, click here.



For more information:

  • Looking for free research? Browse our comprehensive White Papers section by topic, author or keyword.
  • Are you tired of technospeak? The Web Services Advisor column uses plain talk and avoids the hype.
  • For insightful opinion and commentary from today's industry leaders, read our Guest Commentary columns.
  • Hey Codeheads! Start benefiting from these time-saving XML Developer Tips and .NET Developer Tips.

  • Visit our huge Best Web Links for Web Services collection for the freshest editor-selected resources.
  • Visit Ask the Experts for answers to your Web services, SOAP, WSDL, XML, .NET, Java and EAI questions.
  • Couldn't attend one of our Webcasts? Don't miss out. Visit our archive to watch at your own convenience.
  • Choking on the alphabet soup of industry acronyms? Visit our helpful Glossary for the latest lingo.
  • Discuss this article, voice your opinion or talk with your peers in the SearchWebServices Discussion Forums.

Dig deeper on Service-oriented architecture (SOA) implementations

Pro+

Features

Enjoy the benefits of Pro+ membership, learn more and join.

0 comments

Oldest 

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to:

SearchSoftwareQuality

SearchCloudApplications

SearchAWS

TheServerSide

SearchWinDevelopment

Close