This presentation is a look at emerging trends in enterprise software, social software and general software business models that have emerged or accelerated because of the 2008 financial crisis and recession.

1. Michael Fauscette, Group Vice President, SBS
©Copyright 2008 IDC
2009 IDC 8-09

2. Where We Stand
 Crisis –
 Impact
 where’s the bottom?
 How / when do we recover?
 Fundamental changes
 Consumption models
 Structural change
 Innovation
© 2009 IDC 8-09 2

3. SW Applications Forecast Changes
8.0%
7.0%
6.0%
5.0%
2008 (Early)
4.0% 2008 (Dec)
2009 (Jan)
3.0%
2009 (May)
2.0%
1.0%
0.0%
2008 2009 2010 2011 2012
©Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
2009 IDC 8-09

4. An Economic Unknown
$1-3 Trillion For
 Bank Bailouts
 Tax Cuts
 Smart Grid
 SMB Incentives
 Health Care
 Infrastructure
 Broadband
 Auto Manufacturers
 Green Building
© 2009 IDC 8-09 4

5. Software Megatrends
Structural Changes Accelerated by the Financial Crisis
Consumption Models
Architecture
Imperatives
Emerging
Targets
Sourcing a
Process
© 2009 IDC 8-09

6. Software Megatrends
Structural Changes Accelerated by the Financial Crisis
Consumption Models
 Software as a Service /
Cloud Applications
 Open Source Software
© 2009 IDC 8-09

7. SaaS forecast comparison
$M
• IDC has increased its SaaS growth projection for 2009 from 36% growth to 42% growth over
2008.
• The percentage of U.S. firms which plan to spend at least 25% of their IT budgets on SaaS
applications will increase from 23% in 2008 to nearly 45% in 2010.
Source: Economic Crisis Response: Worldwide Software as a Service Forecast Update (IDC #215504, January 2009)
©Copyright 2009 IDC. Reproduction is forbidden unless authorized. All rights reserved.
2009 IDC 8-09

8. OSS Forecast
Source: Worldwide Open Source Software Forecast 2009 – 2013, July 2009
© 2009 IDC 8-09

9. Software Megatrends
Structural Changes Accelerated by the Financial Crisis
Imperatives
Emerging
 Social Software Solutions
 The Next Gen Web
© 2009 IDC 8-09

10. The Social Enterprise
Democratization and
Empowerment:
Spreading control across a broad
audience, adding value, building
relationships, conversations and
increasing transparency
It’s not just “tools”,
it’s changing processes
and culture
© 2009 IDC 8-09

11. The Social Enterprise
External
Sales – Marketing – Product – Support - Service
Blogs – Communities – Social Networks - Ideasourcing
– Microblogs – Syndication – Virtual Conference - Video
Wiki’s – Social Analytics – Collaboration – Mashups –
Platforms -
Internal
© 2009 IDC 8-09

12. Social Software Solutions
Consumer
Apps Collab CRM Content
Apps
Online Community Platforms
Social Analytics
Ideasourcing
Enablers Wiki Social Wiki
Customer
Blogs Service Blogs
+traditional Social SFA Ideasourcing
Collab (predictive
selling)
Brand
Monitoring /
building
© 2009 IDC 8-09

13. Social Software Solutions Vendors
Consumer
Apps Collab CRM Content
Apps
Online Community Platforms
Social Analytics
Facebook SocialText Concursive Google Apps
LinkedIn Lotus UserVoice Cisco Eos
Connections
Oracle Sales Reality Digital
MySpace Sharepoint Prospector
MyLife
Twitter Jive Bright Idea
OneRiot
Google Google Apps Omniture
Wink
Apps
© 2009 IDC 8-09

14. The Next Gen Web
Web 1.0 Web 1.5 Web 2.0 Web 3.0
Static
Web
Transaction
Web
Social
Web ? Semantic
Web
© 2009 IDC 8-09

15. The Next Gen Web
?  Real-time
 Mobile
 Ubiquitous access
 Built for Web communication
 Decentralized
 Modular / reusable
 Increasing
interconnectedness
© 2009 IDC 8-09

16. With Video….
 Trust
 Connection
 Visual instincts
© 2009 IDC 8-09

17. Software Megatrends
Structural Changes Accelerated by the Financial Crisis
 Service Oriented
Architecture
Architecture (SOA)
 Event Based
Architecture
 Unified Access to
Content and Data
© 2009 IDC 8-09

18. Software Megatrends
Structural Changes Accelerated by the Financial Crisis
 Build: Mashup,
Process Modeling,
Business Rules
 Buy: “Good Enough”
v. “Best of Breed”
 Outsource
Sourcing a
Process
© 2009 IDC 8-09

19. Software Megatrends
Structural Changes Accelerated by the Financial Crisis
Targets
 SMB’s
 Channels
 Partner to Partner
© 2009 IDC 8-09

20. Consolidation
 Enter the
Mega-ecosystem
 Partners Coalesce
Around Epicenters
 Partner Consolidation
 Hybrid Business
Models
© 2009 IDC 8-09

21. The New Landscape of Tech
Mega HP, IBM, Microsoft, Oracle (Post Sun),
Vendor Cisco, Intel, Google, Apple
Acquisition 1. Large >$1B, 2. vertical ISV’s, 3.
Targets Discontinuous innovators
Niche Markets, Redundant Portfolio, Too
Survivors Unique
Discontinuous Innovators: future
Start ups acquisition targets
© 2009 IDC 8-09

22. Contact
Michael Fauscette
mfauscette@idc.com
Twitter: @mfauscette
Blog: www.mfauscette.com
© 2008 IDC
© 2009 IDC 8-09