1. New Opportunities for Uncertain Times
Congress - The Business of Design and Engineering:  It's the Economy, Stupid!
New Opportunities for Uncertain Times

2. Agenda COFES 2009 Engineering Software Market Survey User perspectives
Joint survey
Cyon market study (preview)
User perspectives
Discussion on threats and opportunities

3. Scope Impact of the Economy on Companies
Impact of the Economy on Market
Outlook for Smaller Vendors
When will the Recovery Come?

4. Executive Summary

5. Research Process
Survey of 1,000 engineering software market participants
Customers (users of the software) 682
Vendors
Channels
Press/Analysts
Other

6. Research Intent The survey is intended to discover market sentiment
Survey represents respondents’ opinions about the market
The intent is to drive a deeper conversation at COFES on the threats and opportunities arising from the current market economy

7. Useful Definitions Customer - a firm that uses software design tools
Broad Vendor - (broad suite) - a software company that offers a broad range of solutions
Targeted Vendor - (targeted solutions) - a software company that offers one (or a few) best of breed tools
Channel - a firm whose primary role is to deliver products and services to customers, but not a software vendor
Press - publication or blog
Analyst - market or industry analyst

8. Economic Impact
Which of the following best describes the impact of the current economy on your 2009 business performance? (select one)

9. Who is Suffering Most?
Percent of customers experiencing “severe negative impact” by type

10. We are all in the Same Boat
Percent of customers experiencing “moderate negative impact”:
Most common answer across all categories
Bell shaped curve around this choice

11. Impact on Market
Which of the following (if any) do you believe will describe the most likely characteristics of the engineering software market by this time next year? (select all that apply)
Note: Others = Oracle/SAP or other, non-traditional engineering software firms

12. Outlook for Smaller Vendors
What do you believe will be the most common impacts of the economy on specialty application providers, startups, or other smaller vendors? (select all that apply)

13. Smaller Vendors More Optimistic
Customer
Broad Vendor
Targeted Vendor
Channel
Go out of business
23%
26%
15%
21%
Get acquired
19%
28%
16%
20%
Struggle, but survive
51%
39%
63%
54%
Continue with business as usual 5% 4% 3%
Invest more heavily 2% 1%
Targeted vendors don't think they are going away
Bigger vendors think they will be acquired (by them, I assume?)
Bigger vendors are the most pessimistic about specialists, customers disagree
On the other hand - few believe it's "business as usual"

14. When Will We Recover?
What is your best estimate of when the engineering software market will recover (to approximately levels)?
The majority say 2-3 years

15. Vendor Execs More Optimistic than Customers

16. What’s Happened Hold all new acquisitions – 25%
Delay acquisitions in Progress – 19%
Cancel acquisitions in progress – 14%
A random walk through visual messages
Copyright 2008, Cyon Research Corporation

17. What’s Happened Discontinue Software Maintenance:
For unused seats – 22%
Selectively – 15%
Across the board – 8%
A random walk through visual messages
Copyright 2008, Cyon Research Corporation

18. What’s About to Happen Hold all new acquisitions – 8%
Delay acquisitions in Progress – 7%
Cancel acquisitions in progress – 5%
A random walk through visual messages
Copyright 2008, Cyon Research Corporation

19. What’s About to Happen Discontinue Software Maintenance:
For unused seats – 7%
Selectively – 7%
Across the board – 2%
A random walk through visual messages
Copyright 2008, Cyon Research Corporation

20. Overhang Hold all new acquisitions – 31%
Delay acquisitions in Progress – 35%
Cancel acquisitions in progress – 33%
A random walk through visual messages
Copyright 2008, Cyon Research Corporation

21. Overhang Discontinue Software Maintenance: For unused seats – 27%
Selectively – 37%
Across the board – 23%
A random walk through visual messages
Copyright 2008, Cyon Research Corporation

22. The Good News
Use the slow time to jump forward on engineering IT projects, but within the current budget
15% 12% 27%
New spending for strategic advantage against competition
10% 11% 35%
A random walk through visual messages
Copyright 2008, Cyon Research Corporation

23. New Opportunities for Uncertain Times
Congress - The Business of Design and Engineering:  It's the Economy, Stupid!
New Opportunities for Uncertain Times