Avangate ‘Any channel, Any model’ Heralding Shift in Software Distribution
November 11, 2011 —
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Avangate, the agile eCommerce service provider trusted by thousands of Software and SaaS companies to grow their businesses worldwide through any channel and any model, today announced the launch of SkyCommerce, Avangate’s new suite that integrates its advanced eCommerce and Channel Management SaaS-based modules to enable software vendors to grow both online and offline sales and accelerate their time to market.
The software industry is undergoing major shifts in the way software is developed, distributed and consumed. Analysts estimate the online delivery of software, whether downloaded or SaaS, will grow from 30% in 2010 to over 70% in 2014. The rise of cloud computing and the corresponding shift in consumer expectations are forcing independent software vendors (ISVs) to fight margin pressure, expand to new channels and explore new licensing models in their race to offer “frictionless” self-service transactions. Many are rethinking their reseller and distributor strategy - channels that today still represent over 50% of how software is sold worldwide.
R “Ray” Wang, Principal Analyst and CEO, Constellation Research, Inc., said, “The software market is about to be massively disrupted as never before. In previous waves of change, “Big Software” has controlled the pace of change with their dominance of channels and distribution. This time, the rapid adoption of cloud computing puts the power in the hands of any software vendor, large or small. The impact is that software companies will need to accelerate their time to market, evolve to pay as you go revenue models, and adapt to a customer-driven agenda more rapidly. Successful companies will turn to solutions that deliver on this new customer-driven agenda, lock in channel loyalty, and maximize revenues.”
“The top 40 application vendors have leveraged their distribution power to control over half of the software market revenue. Our customers see a huge opportunity to break from last century’s hegemony in software with the democratization of how software gets distributed. Now is the time for the other 99.5% of the world’s ISVs to redefine how software gets to customers,” said Carl Theobald, Avangate CEO. “Our mission is to provide software companies a scalable, cloud-based, distribution solution for selling their products globally.”
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