Precise Software Solutions
Case Analysis: Precise Software Solution
! Problem:
When and how to introduce the new product, Insight, to the market?
! Issues:
•
Should Precise Software Solution introduce the new product at the
OpenWorld 2000? Is the new product ready for the OpenWorld 2000?
•
What’s the impact of delaying the introduction of the new product?
•
What the selling strategy will be? Should this product be sold through the same sales force as other successful products?
•
How to price the new product?
! Industry/MKT analysis:
The software market was growing fast since IT had a significant impact on nearly all aspects of most firms’ business. Nearly every company would spend $99 to $10 million on software purchase.
Efficiency and effectiveness were very important in the software market .
It usually took long time and a big amount of R&D cost and labor cost to develop new products. However, the products in this industry updated quickly. Carrie, 2 The category of software referred to “performance management and
availability” was estimated to be $2.4 billion in 1999, which would double in 2003. This market was fragmented, with brands and products clutter.
However, no vendor offered a product that managed the performance of the entire system. Among all the products in the current market, none of them offered an end-to-end performance management tool. An end-toend solution market seemed to be quite large and there was no current direct competition.
! Competition analysis:
The three biggest competitors in the software market were Oracle,
BMC Software, and Quest Software. For software to manage the performance of Oracle databases was one of the largest segments of the market. Competitors
Revenue
Products in performance
(2000)
software market
Functionality
“Oracle Optimizer”, as part
Oracle
BMC
$10.1 billion
$1.7 billion
of its database package
“Patrol” (created 17% of
Monitoring
Monitoring
total revenue in 2000)
$150 million
Quest
(Booking)
25
! Problem:
When and how to introduce the new product, Insight, to the market?
! Issues:
•
Should Precise Software Solution introduce the new product at the
OpenWorld 2000? Is the new product ready for the OpenWorld 2000?
•
What’s the impact of delaying the introduction of the new product?
•
What the selling strategy will be? Should this product be sold through the same sales force as other successful products?
•
How to price the new product?
! Industry/MKT analysis:
The software market was growing fast since IT had a significant impact on nearly all aspects of most firms’ business. Nearly every company would spend $99 to $10 million on software purchase.
Efficiency and effectiveness were very important in the software market .
It usually took long time and a big amount of R&D cost and labor cost to develop new products. However, the products in this industry updated quickly. Carrie, 2 The category of software referred to “performance management and
availability” was estimated to be $2.4 billion in 1999, which would double in 2003. This market was fragmented, with brands and products clutter.
However, no vendor offered a product that managed the performance of the entire system. Among all the products in the current market, none of them offered an end-to-end performance management tool. An end-toend solution market seemed to be quite large and there was no current direct competition.
! Competition analysis:
The three biggest competitors in the software market were Oracle,
BMC Software, and Quest Software. For software to manage the performance of Oracle databases was one of the largest segments of the market. Competitors
Revenue
Products in performance
(2000)
software market
Functionality
“Oracle Optimizer”, as part
Oracle
BMC
$10.1 billion
$1.7 billion
of its database package
“Patrol” (created 17% of
Monitoring
Monitoring
total revenue in 2000)
$150 million
Quest
(Booking)
25