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Analyst Corner
IT Users Seek Simple, Flexible Licensing and Pricing Models
According to IDC's latest study "Asia-Pacific Investment and Adoption Plans for Application Development and Deployment (AD&D) Software in Key Countries, 2007" simplicity and flexibility are the key factors that companies across the four surveyed countries – Australia, the PRC, India and Korea – consider when making investment decisions.
Respondents to the IDC Asia-Pacific's Software Usage and Experiences Survey, 2007 indicated that they are seeking greater simplification and higher flexibility in licensing and pricing models in order to meet their companies’ specific requirements. In addition, respondents from Australia and Korea have made a case for more centralised control of software license relationships.
"Most software vendors have already adopted simplicity and flexibility in the deployment, integration, and manageability of their products and included these themes in their marketing campaigns. They, however, have yet to extend the same themes to their pricing and delivery options. This has resulted in complex costing models, ambiguity about the true costs of AD&D investments, and a mismatch in actual versus potential customer values gained from investing in these technologies" says Ullrich Loeffler, Market Analyst of IDC’s Asia-Pacific Software Research.
When asked about their purchasing strategy, respondents across the four key countries indicated that integrated solution packages consisting of hardware, software and IT services components are the preferred purchasing option. The second most frequently cited purchasing strategy among the respondents in Australia, the PRC and India is to buy AD&D software as part of a software suite with multiple functionalities. Both ratings indicated a strong preference for integrated product solutions rather than "best-of-breed" point products or custom-developed software.
IDC expects the PRC and India to continue their leads in terms of their investments in AD&D software. The survey results revealed that businesses that operate in India have the highest investment intentions across all AD&D software categories. In particular, Middleware Software is on the shopping list of more than 60 per cent of the IT decision makers in India. Comparatively, investment intentions from organisations operating in Australia and Korea, where IT development is more mature, are significantly lower.
"We expect vendors to dip into these 'high growth' pockets more aggressively while strengthening their position in the mature markets. The main challenge is to accurately understand their customers' demands and "pain points" in order to communicate the right value propositions of their products and services," concludes Ullrich.
Respondents to the IDC Asia-Pacific's Software Usage and Experiences Survey, 2007 indicated that they are seeking greater simplification and higher flexibility in licensing and pricing models in order to meet their companies’ specific requirements. In addition, respondents from Australia and Korea have made a case for more centralised control of software license relationships.
"Most software vendors have already adopted simplicity and flexibility in the deployment, integration, and manageability of their products and included these themes in their marketing campaigns. They, however, have yet to extend the same themes to their pricing and delivery options. This has resulted in complex costing models, ambiguity about the true costs of AD&D investments, and a mismatch in actual versus potential customer values gained from investing in these technologies" says Ullrich Loeffler, Market Analyst of IDC’s Asia-Pacific Software Research.
When asked about their purchasing strategy, respondents across the four key countries indicated that integrated solution packages consisting of hardware, software and IT services components are the preferred purchasing option. The second most frequently cited purchasing strategy among the respondents in Australia, the PRC and India is to buy AD&D software as part of a software suite with multiple functionalities. Both ratings indicated a strong preference for integrated product solutions rather than "best-of-breed" point products or custom-developed software.
IDC expects the PRC and India to continue their leads in terms of their investments in AD&D software. The survey results revealed that businesses that operate in India have the highest investment intentions across all AD&D software categories. In particular, Middleware Software is on the shopping list of more than 60 per cent of the IT decision makers in India. Comparatively, investment intentions from organisations operating in Australia and Korea, where IT development is more mature, are significantly lower.
"We expect vendors to dip into these 'high growth' pockets more aggressively while strengthening their position in the mature markets. The main challenge is to accurately understand their customers' demands and "pain points" in order to communicate the right value propositions of their products and services," concludes Ullrich.
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