As downstream demand rebounds, suppliers will have more room to raise prices.
Los Angeles, CA (PRWEB) March 12, 2014
Buyers procuring data management and query software have a buyer power score of 3.6 out of 5.0. The closer a market's buyer power score is to 5.0, the more power the buyer has. Factors that are favorable to the buyer include slow price growth and low volatility, low vendor financial and supply chain risk, and intense competition among the market's top suppliers. Working against buyers' favor are a lack of substitute product options and potentially high switching costs.
Buyers have and will continue to invest in computers and software, spurring demand for these products. Additionally, input costs will rise, and software providers will be forced to pass some of these costs on to buyers. “For example, the cost of acquiring intellectual property from various software providers has escalated as the top vendors have vied to remain at the forefront of technology,” says IBISWorld business research analyst Nikoleta Panteva. Still, the level of competition among the top suppliers will keep prices in check, creating low volatility, allowing buyers to easily budget.
While the market for data management software is highly concentrated, buyers can rest assured that suppliers' financial stability is solid. “As such, buyers can easily purchase a long-term, or even unlimited, license without much risk of the supplier declaring bankruptcy,” says Panteva. Likewise, the steady supply chain reduces input cost volatility, creating a steady purchasing environment for buyers.
Buyers' power is, however, compromised due to the scarcity of viable substitutes. Hiring an in-house software developer often costs significantly more than simply purchasing a development program. Another factor limiting buyer power is the potentially high switching costs. Depending on the type of license purchased up front, buyers may be locked into a long-term deal that may cost them tens of thousands of dollars. While purchasing a separate data management program is not impossible, it is very costly. Major vendors include Microsoft Corporation, International Business Machines Corporation, EMC Corporation and Teradata Corporation. For more information, visit IBISWorld’s Data Management & Query Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of data management and query software. These products include categorization; clustering; customer relationship; database management, reporting and user interface; query; data mining; information retrieval; metadata management; object oriented database management; portal server; transaction server; and business intelligence and data analysis software. Software can be installed on a buyer's servers or hosted outside of the buyer's network.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.