Growing demand and the increased complexity and power of backup software have allowed providers to raise prices in recent years, hurting buyer power
Los Angeles, CA (PRWEB) November 22, 2014
The backup and archival software market earns a buyer power score of 3.4 out of 5.0, which indicates a moderate level of negotiation power for buyers. Product and market characteristics heavily support suppliers, but buyers benefit from the stability of the marketplace.
“Essentially any business with a significant reliance on computers or other information technology needs backup software because it protects against catastrophic data losses or hardware malfunctions. Because backup software is a need, and there are no effective substitutes, buyers cannot put off purchasing decisions without exposing themselves to significant risk, which undermines their leverage in the market,” according to IBISWorld business research analyst Dale Schmidt. The software, therefore, acts as a form of insurance, so suppliers price it according to the value it brings to the buyer, namely how much money it saves against the cost of a data compromise. Favorable market conditions, along with steadily rising demand, have allowed suppliers to raise prices, which hurts buyer power.
In addition, the market is highly concentrated because buyers favor established brand names with long track records of success. This factor leaves the buyer with few choices when it comes to backup software. However, the buyer also benefits because high concentration means only vendors that are large, established and financially secure will populate the market. This includes top suppliers Symantec Corporation and EMC Corporation. “Buyers can be more or less certain that their chosen supplier will not suffer any significant financial distress that would interrupt service during the length of the contract,” Schmidt says. For more information, visit IBISWorld’s Backup & Archival Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of backup and archive software. The purpose of backup and archive software is to keep digital copies of data. In the case of data corruption, deletion or physical disaster, data can be easily recovered using backup and archival software. Backup software is designed to save operational and recent data, and archival software is designed to save long-term and historical data. However, most backup and archive software is designed to manage both functions.
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
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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.