New Statistics Show Software Publishers Embracing Service Model

Apr 25, 2001, 01:00 ET from Software & Information Industry Association

    WASHINGTON, April 25 /PRNewswire/ -- One-half of software publishers are
 currently delivering products as a service via the Internet according to a new
 survey released today by the Software & Information Industry Association
 (SIIA).  Other significant findings include that the service model is seen by
 an overwhelming majority of publishers as a channel to reach new customers,
 although a great deal of uncertainty continues to exist regarding issues of
 technical development, security and marketing the model to legacy customers.
     The survey, "Software as a Service: Current Practices & Plans of ISVs,"
 showed that 64 of 124 responding software publishers are currently utilizing
 the software as a service model, with more than one-third of those not now
 using the model planning to do so within the next year.  Respondents provided
 detailed information about the types of products being offered as a service
 and for how long the service has been offered (or when service-enabled
 products are expected to be released), third-party strategic partnerships
 versus in-house enabling, pricing, licensing, distribution, benefits for
 customers and barriers to broad customer acceptance.
     "A clear majority of software publishers have incorporated the service
 model into their long-term business plans," said Ken Wasch, SIIA president.
 "While most publishers are not aggressively migrating their legacy customers
 from shrink-wrap products to Internet-enabled services, it does appear that
 software as a service is emerging as an important new sales channel with
 unique value-added offerings."
     "It's also important to note that software as a service does not
 necessarily imply the hosting and distribution models generally associated
 with the acronym 'ASP'," continued Wasch.  "Software as a service requires
 that applications be re-coded to take advantage of the ubiquity and
 interactive capability of the Internet.  It transcends distribution to create
 alternatives for revenue, pricing and licensing models, expanding
 functionality and offering customers new choices."
     A list of participating companies in the survey is available at
 http://www.siia.net/sharedcontent/divisions/ebus/isvsurvey.pdf.  For further
 information or complimentary media access to the members-only survey, contact
 Rachel Haynes at rhaynes@siia.net or 202-452-1600, ext. 365.
     Last month, SIIA released a comprehensive 31-page white paper on software
 as a service.  The paper, "Software as a Service 'A to Z' for ISVs" provides
 software publishers with a guide to application development practices, aspects
 of partnering with application infrastructure vendors, pricing, licensing and
 managing the new software as a service sales channel.
 
     The Software & Information Industry Association (SIIA) is the principal
 trade association of the software code and information content industries.
 SIIA represents more than 1,000 leading high-tech companies that develop and
 market software and electronic content for business, education, consumers and
 the Internet. For further information, visit http://www.siia.net .
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X17343325
 
 

SOURCE Software & Information Industry Association
    WASHINGTON, April 25 /PRNewswire/ -- One-half of software publishers are
 currently delivering products as a service via the Internet according to a new
 survey released today by the Software & Information Industry Association
 (SIIA).  Other significant findings include that the service model is seen by
 an overwhelming majority of publishers as a channel to reach new customers,
 although a great deal of uncertainty continues to exist regarding issues of
 technical development, security and marketing the model to legacy customers.
     The survey, "Software as a Service: Current Practices & Plans of ISVs,"
 showed that 64 of 124 responding software publishers are currently utilizing
 the software as a service model, with more than one-third of those not now
 using the model planning to do so within the next year.  Respondents provided
 detailed information about the types of products being offered as a service
 and for how long the service has been offered (or when service-enabled
 products are expected to be released), third-party strategic partnerships
 versus in-house enabling, pricing, licensing, distribution, benefits for
 customers and barriers to broad customer acceptance.
     "A clear majority of software publishers have incorporated the service
 model into their long-term business plans," said Ken Wasch, SIIA president.
 "While most publishers are not aggressively migrating their legacy customers
 from shrink-wrap products to Internet-enabled services, it does appear that
 software as a service is emerging as an important new sales channel with
 unique value-added offerings."
     "It's also important to note that software as a service does not
 necessarily imply the hosting and distribution models generally associated
 with the acronym 'ASP'," continued Wasch.  "Software as a service requires
 that applications be re-coded to take advantage of the ubiquity and
 interactive capability of the Internet.  It transcends distribution to create
 alternatives for revenue, pricing and licensing models, expanding
 functionality and offering customers new choices."
     A list of participating companies in the survey is available at
 http://www.siia.net/sharedcontent/divisions/ebus/isvsurvey.pdf.  For further
 information or complimentary media access to the members-only survey, contact
 Rachel Haynes at rhaynes@siia.net or 202-452-1600, ext. 365.
     Last month, SIIA released a comprehensive 31-page white paper on software
 as a service.  The paper, "Software as a Service 'A to Z' for ISVs" provides
 software publishers with a guide to application development practices, aspects
 of partnering with application infrastructure vendors, pricing, licensing and
 managing the new software as a service sales channel.
 
     The Software & Information Industry Association (SIIA) is the principal
 trade association of the software code and information content industries.
 SIIA represents more than 1,000 leading high-tech companies that develop and
 market software and electronic content for business, education, consumers and
 the Internet. For further information, visit http://www.siia.net .
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X17343325
 
 SOURCE  Software & Information Industry Association

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