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SOFTWARE INDUSTRY

OVERVIEW

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Agenda

Agenda

The Market

Business Models

- Subscription-based

- One-off purchases

Industry Specifics

Software Online Sales

• In 2009 total online sales were around $260 billion

• An upward trend is noticed in the B2C segment

• Online software sales are expected to climb in the

next 3 years

• According to Forester Research the total online sales

in 2011 will be approximately $560 billion

Online Software Sales

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009

38.10640.585

43.31446.213

49.14452.189

ESD (Electronic Software Delivery)

All Software

Bil

lio

ns U

SD

Online Software Sales Distribution

Share of online software sales

United States 61.82%%

United Kingdom 8.56%

Canada 5.98%

Australia 3.56%

France 3.24%

Spain 3.23%

Germany 2.83%

Netherlands 1.42%

ROW 9.45%

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Agenda

Agenda

The Market

Business Models

- Subscription-based

- One-off purchases

Industry Specifics

Subscription-based Software

• This business model is relevant for companies selling:

Website access to premium content

Support

Upgrades

Hosted Applications

Software as a Service

• Options for customer data storage

The customer data is stored at the vendor

The customer data is stored at Gate2Shop

Subscription-based Software

• Options for customer data storage

The customer data is stored at the vendor

The customer data is stored at Gate2Shop (preferred

by service providers)

• Payment Options used – Credit and Debit Cards, Direct

Debits

• Billing cycles – daily, monthly, quarterly or any other

recurring time interval

• Shifting standard business models towards

Subscription-based

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Agenda

Agenda

The Market

Business Models

- Subscription-based

- One-off purchases

Industry Specifics

One-off Purchases

• This business model is relevant for companies selling:

Website access to premium content

PC Support

Add-ons and Upgrades

Other Software as a Service businesses

• All payment options can be applied to the business

model:

eWallets

Real-time Bank Transfers

Credit and Debit Cards

More

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Agenda

Agenda

The Market

Business Models

- Subscription-based

- One-off purchases

Industry Specifics

Industry Specifics

• The more payment options are offered the greater the

conversion ratio

• Credit and Debit Cards remain the predominant

payment option for the software industry

• Around 30% of all software sold online is SaaS

• Online software sales are expected to grow at a 34%

growth rate

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Thank you!