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The Traditional Division Between IT Product Vendors and Services Firms Is Disappearing, Says IDC

Announcement posted by IDC 13 Jan 2004

IDC has released a new study titled, Partnering to deliver the enterprise applications solutions. This study reveals that as the Australian market evolves, solutions that marry products and services to meet specific business needs are becoming increasingly important. Solutions are the preferred method of delivery for IT investments, and winning bids are more often those for which IT services providers and product vendors walk into engagements hand in hand. Faced with increasing competition and solution complexity, services firms are looking to build strong go-to-market relationships with independent software vendors.
IDC has witnessed emergence of following trends within the enterprise applications space that are driving stronger partnerships between the applications vendors and systems integrators:
*Many of the enterprise apps vendors will continue to rely on partnerships to build best practice industry specific solutions; *Increasing delivery channels for services, such as reliance on outsourcing and application vendors own in-house services capabilities; and *Changing role of systems integrators.
Almost all of the major enterprise vendors have either launched or announced marketing campaigns that strategically target the SMB segment. Further, enterprise vendors have restructured their organisations for vertical alignment, in full realisation that various verticals have differing application requirements. Enterprise Applications functionalities have been improving consistently in the past several years, and an increasing number of strategic business partnerships are being forged between the traditional suite application vendors and systems integrators, consulting companies, and distribution channels to bring complete solutions to market, said Bharati Poorabia, Senior Analyst, Enterprise Applications at IDC Australia.
Partnering to deliver such enterprise business solutions is becoming imperative, as a challenging economy has forced software vendors to be more adaptable and flexible in their go-to-market strategies. This represents a paradigm shift in how todays businesses are acquiring and deploying enterprise technologies which has resulted in a reshaping of the partnering landscape for software vendors. That means traditional software vendors are taking risks with their partners in developing innovative solutions and building new business models to maintain sustainable competitive advantage against new emerging players in the market place, she added.
Click here to go to the press release: http://www.idc.com.au/resources/press/software/20040112_partnering.htm
About IDC:

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and eBusiness trends to develop sound business strategies. Using a combination of rigorous primary research,in-depth analysis, and client interaction, IDC forecasts local and worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organisations, eBusiness companies and the financial community. Additional information can be found at www.idc.com.au