INDUSTRY DEVELOPMENTS AND MODELS IDC's Software Taxonomy, 2007 Richard V. Heiman IDC OPINION IDC's software taxonomy represents a collectively exhaustive and mutually exclusive view of the worldwide software marketplace. This taxonomy is the basis for the relational multidimensional schema of the IDC Software Market Forecaster research database. The information from this continually updated database is used to generate consistent packaged software market sizing and forecasts. Highlights are as follows: For 2007, the taxonomy includes 79 individual functional markets grouped within three primary segments of "packaged" software: applications, application development and deployment (AD&D) software, and system infrastructure software. Revenue is further segmented across three geographic regions and nine operating environments. Additionally, the taxonomy defines a wide range of "competitive" markets that are combinations of whole or fractions of functional markets and that reflect such market dynamics as the problem being solved or the technology on which the software is based. Global Headquarters: 5 Speen Street Framingham, MA 01701 USA P.508.872.8200 F.508.935.4015 www.idc.com F.508.935.4015 P.508.872.8200 01701 Global Framingham,USA Street Headquarters:MA 5 Speen Filing Information: February 2007, IDC #205437, Volume: 1, Tab: Markets Software Overview: Industry Developments and Models TABLE OF CONTENTS P In This Study 1 Executive Summary.................................................................................................................................. 1 Situation Overview 2 Introduction............................................................................................................................................... 2 What Is Packaged Software? ................................................................................................................... 3 General Functional Market Definitions...................................................................................................... 5 Software Taxonomy Functional Market Changes for 2007....................................................................... 8 Applications Market Definitions................................................................................................................. 10 Consumer Applications...................................................................................................................... 11 Consumer Software.................................................................................................................... 11 Collaborative Applications ................................................................................................................. 11 Integrated Collaborative Environments ...................................................................................... 11 Messaging Applications.............................................................................................................. 12 Team Collaborative Applications ................................................................................................ 13 Conferencing Applications.......................................................................................................... 13 Other Collaborative Applications ................................................................................................13 Content Applications.......................................................................................................................... 13 Content Management................................................................................................................. 14 Authoring and Publishing Software ............................................................................................ 15 Search and Discovery ................................................................................................................ 15 Enterprise Portals....................................................................................................................... 16 Enterprise Resource Management Applications................................................................................ 16 Financial Accounting Applications .............................................................................................. 17 Human Capital Management...................................................................................................... 18 Payroll ........................................................................................................................................ 21 Procurement............................................................................................................................... 21 Order Management .................................................................................................................... 23 Financial Performance and Strategy Management Applications ................................................ 24 Project and Portfolio Management ............................................................................................. 24 Enterprise Asset Management ................................................................................................... 25 Supply Chain Management Applications ........................................................................................... 25 Logistics ..................................................................................................................................... 26 Production Planning ................................................................................................................... 26 Inventory Management............................................................................................................... 26 Operations and Manufacturing Applications ...................................................................................... 27 Services Operations Management ............................................................................................. 27 Manufacturing............................................................................................................................. 27 Other Back Office ....................................................................................................................... 27 Engineering Applications ................................................................................................................... 28 Mechanical Computer-Aided Design .......................................................................................... 28 Mechanical Computer-Aided Engineering .................................................................................. 28 Mechanical Computer-Aided Manufacturing............................................................................... 29 Product Information Management .............................................................................................. 29 Other Engineering ...................................................................................................................... 29 Customer Relationship Management Applications ............................................................................ 30 #205437 ©2007 IDC TABLE OF CONTENTS — Continued P Sales .......................................................................................................................................... 30 Marketing.................................................................................................................................... 31 Customer Service....................................................................................................................... 32 Contact Center ........................................................................................................................... 32 Application Development and Deployment Market Definitions ................................................................. 33 Information and Data Management Software .................................................................................... 33 Relational Database Management Systems............................................................................... 33 Nonrelational Database Management Systems ......................................................................... 34 Database Development and Management Tools ....................................................................... 35 Data Integration and Access Software ....................................................................................... 36 Application Development Software.................................................................................................... 39 Unified Development Environments ........................................................................................... 39 Third-Generation Language Tools.............................................................................................. 40 Software Construction Components........................................................................................... 41 Analysis, Modeling, and Design Tools........................................................................................ 41 Web Site Design/Development Tools......................................................................................... 42 Quality and Life-Cycle Tools.............................................................................................................. 42 Automated Software