High demand has justified slight price increases due to the market’s value-based pricing model
Los Angeles, CA (PRWEB) September 08, 2014
Prices for network monitoring software have been increasing slightly during the past three years mainly due to higher demand; this trend is expected to continue over the next three years as a result of competition from low-priced alternatives, especially open-source software, SaaS and free software. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Network Monitoring Software in its growing collection of procurement category market research reports.
The network monitoring software market has a buyer power score of 4.0 out of 5, which indicates high buyer power. While a wide selection of products and pricing options benefits buyers, according to market research firm IBISWorld, a high level of specialization and strong demand limits buyer negotiating power. Software programming has grown in recent years; demand for many kinds of software, including network monitoring software, has increased and new vendors have entered the market to take advantage of this demand. Competition is, thus, fierce in this market, granting buyers higher negotiation leverage and low price volatility. Current major vendors include BMC Software, CA Technologies, SolarWinds Inc., IBM and HP.
According to IBISWorld, network monitoring software prices have low volatility and have barely moved in recent years, a trend that is expected to continue during the next three years as a result of competition, the impossibility of supply shortages and a focus on growing sales as opposed to prices due to the low marginal cost of sales. Buyers should focus on product characteristics, pricing factors, pricing models and billing methods, which will have a stronger impact on total price, than on individual year-to-year price variations.
Vendors frequently offer software solutions based on a buyer's needs, but high specialization of the product is detrimental to buyer power due to the often complex and lengthy implementation process. The high level of specialization boosts total cost of ownership and switching costs, which limits buyer power and reinforces the need to select the best supplier from the initial purchase. Buyers should factor in the costs associated with deploying and effectively using the software, which can be high depending on the scale of the monitoring and management required. Most buyers will require IT consulting to implement software or use a software reseller, which can provide software and installation. For more information, visit IBISWorld’s Network Monitoring Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of network monitoring software, which most often contains network management elements as well as monitoring. Network monitoring software allows users to detect, diagnose and resolve network issues. Network monitoring software also tracks statistics for performance analysis. This report does not include network applications software or open-source network monitoring software.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
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.