2014 Software CEO/CFO Outlook Survey

Welcome to SandHill’s 2014 Software CEO/CFO comprehensive outlook for the software industry. We appreciate your time in providing your responses to the following questions so that you and all of us in the industry can benefit from combined knowledge and insights. In appreciation, SandHill will provide you a complimentary copy of the report ($300 value) on the study findings.

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* 1. Compared to the past 12 months, how do you expect the overall U.S. software industry will perform in the next 12 months?

Significantly better

Better

About the same

Worse

Much worse

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* 2. How much do you expect the overall U.S. software industry revenue to grow during the next 12 months?

30% or more

20% - 29%

10% - 19%

2% - 9%

1% or less

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* 3. Which of the following factors do you believe will have the greatest impact on software industry revenues in 2014-2016?

	#1 Factor	#2 Factor	#3 Factor
Big Data / analytics solutions	Big Data / analytics solutions #1 Factor	Big Data / analytics solutions #2 Factor	Big Data / analytics solutions #3 Factor
Security solutions	Security solutions #1 Factor	Security solutions #2 Factor	Security solutions #3 Factor
Internet of Things solutions	Internet of Things solutions #1 Factor	Internet of Things solutions #2 Factor	Internet of Things solutions #3 Factor
Mobile solutions	Mobile solutions #1 Factor	Mobile solutions #2 Factor	Mobile solutions #3 Factor
Emphasis on customer experience	Emphasis on customer experience #1 Factor	Emphasis on customer experience #2 Factor	Emphasis on customer experience #3 Factor
Enterprise social/collaboration tools	Enterprise social/collaboration tools #1 Factor	Enterprise social/collaboration tools #2 Factor	Enterprise social/collaboration tools #3 Factor

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* 4. How much impact is the decline of on-premises software having on your company’s growth in 2013-2014?

Major impact (loss of business unless we provide other offerings)

Moderate impact from existing customers but greater demand from potential new customers

Low but growing impact

No impact (we are a cloud company)

No impact (our customer base prefers on-premises solutions)

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* 5. What single factor do you believe will be the biggest influence driving customer software spending in the next 12 months?

Positioning for economic growth

New business initiatives

Compliance projects

Information security

Increase efficiencies/reduce costs

Other (please specify)

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* 6. Rank which types of software projects will be the biggest drivers in customer spending in the next 12 months.

	#1 Driver	#2 Driver	#3 Driver	#4 Driver	#5 Driver	#6 Driver
Cloud computing solutions	Cloud computing solutions #1 Driver	Cloud computing solutions #2 Driver	Cloud computing solutions #3 Driver	Cloud computing solutions #4 Driver	Cloud computing solutions #5 Driver	Cloud computing solutions #6 Driver
Vertical industry solutions	Vertical industry solutions #1 Driver	Vertical industry solutions #2 Driver	Vertical industry solutions #3 Driver	Vertical industry solutions #4 Driver	Vertical industry solutions #5 Driver	Vertical industry solutions #6 Driver
Big Data, analytics, business intelligence solutions	Big Data, analytics, business intelligence solutions #1 Driver	Big Data, analytics, business intelligence solutions #2 Driver	Big Data, analytics, business intelligence solutions #3 Driver	Big Data, analytics, business intelligence solutions #4 Driver	Big Data, analytics, business intelligence solutions #5 Driver	Big Data, analytics, business intelligence solutions #6 Driver
Functional solutions (example: marketing automation)	Functional solutions (example: marketing automation) #1 Driver	Functional solutions (example: marketing automation) #2 Driver	Functional solutions (example: marketing automation) #3 Driver	Functional solutions (example: marketing automation) #4 Driver	Functional solutions (example: marketing automation) #5 Driver	Functional solutions (example: marketing automation) #6 Driver
Mobile solutions	Mobile solutions #1 Driver	Mobile solutions #2 Driver	Mobile solutions #3 Driver	Mobile solutions #4 Driver	Mobile solutions #5 Driver	Mobile solutions #6 Driver
Enterprise social networking solutions	Enterprise social networking solutions #1 Driver	Enterprise social networking solutions #2 Driver	Enterprise social networking solutions #3 Driver	Enterprise social networking solutions #4 Driver	Enterprise social networking solutions #5 Driver	Enterprise social networking solutions #6 Driver

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* 7. What will be the top three growth opportunities for your company over the next 12 months? (Check only three.)

Launch new products

Add cloud computing offerings

Offer hosted versions of traditional on-premises products (private cloud offerings)

Acquire new customers organically

Sell more to existing customers

Expand to new vertical markets

Expand to new channels of distribution

Enter new geographies

Grow through acquisition

Expand service offerings

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* 8. Which of the following Internet of Things technologies do you believe will have significant impacts on your company’s business growth in 2014-2016? (check all that apply)

	Competitive Threat	Competitive Opportunity	Low Impact	No Impact	Not Sure
Wearable tech	Wearable tech Competitive Threat	Wearable tech Competitive Opportunity	Wearable tech Low Impact	Wearable tech No Impact	Wearable tech Not Sure
Sensor tech	Sensor tech Competitive Threat	Sensor tech Competitive Opportunity	Sensor tech Low Impact	Sensor tech No Impact	Sensor tech Not Sure
Smart home tech	Smart home tech Competitive Threat	Smart home tech Competitive Opportunity	Smart home tech Low Impact	Smart home tech No Impact	Smart home tech Not Sure
Smart city tech	Smart city tech Competitive Threat	Smart city tech Competitive Opportunity	Smart city tech Low Impact	Smart city tech No Impact	Smart city tech Not Sure
Security solutions for IoT	Security solutions for IoT Competitive Threat	Security solutions for IoT Competitive Opportunity	Security solutions for IoT Low Impact	Security solutions for IoT No Impact	Security solutions for IoT Not Sure

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* 9. What are your company’s top three most important business goals for the next 12 months? (Check only three.)

	#1 Goal	#2 Goal	#3 Goal
Driving top line revenue	Driving top line revenue #1 Goal	Driving top line revenue #2 Goal	Driving top line revenue #3 Goal
Controlling overall company expenditures	Controlling overall company expenditures #1 Goal	Controlling overall company expenditures #2 Goal	Controlling overall company expenditures #3 Goal
Providing financial information to internal and external stakeholders	Providing financial information to internal and external stakeholders #1 Goal	Providing financial information to internal and external stakeholders #2 Goal	Providing financial information to internal and external stakeholders #3 Goal
Maintaining an effective internal control structure	Maintaining an effective internal control structure #1 Goal	Maintaining an effective internal control structure #2 Goal	Maintaining an effective internal control structure #3 Goal
Optimizing business processes and reducing process inefficiencies	Optimizing business processes and reducing process inefficiencies #1 Goal	Optimizing business processes and reducing process inefficiencies #2 Goal	Optimizing business processes and reducing process inefficiencies #3 Goal
Developing innovative products/services	Developing innovative products/services #1 Goal	Developing innovative products/services #2 Goal	Developing innovative products/services #3 Goal
Hiring/retaining the best employees	Hiring/retaining the best employees #1 Goal	Hiring/retaining the best employees #2 Goal	Hiring/retaining the best employees #3 Goal
Supporting/retaining customers	Supporting/retaining customers #1 Goal	Supporting/retaining customers #2 Goal	Supporting/retaining customers #3 Goal
Executing to plan	Executing to plan #1 Goal	Executing to plan #2 Goal	Executing to plan #3 Goal

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* 10. Over the course of the next 12 months, how do you expect your company’s headcount to change?

Increase significantly

Increase slightly

Remain the same

Decrease slightly

Decrease significantly

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* 11. Which of the following are the top drivers of your expected headcount change over the next 12 months?

	#1 Driver	#2 Driver	#3 Driver
Need new skills	Need new skills #1 Driver	Need new skills #2 Driver	Need new skills #3 Driver
Increasing sales & marketing	Increasing sales & marketing #1 Driver	Increasing sales & marketing #2 Driver	Increasing sales & marketing #3 Driver
Increasing customer support	Increasing customer support #1 Driver	Increasing customer support #2 Driver	Increasing customer support #3 Driver
Entering new market and/or developing new product	Entering new market and/or developing new product #1 Driver	Entering new market and/or developing new product #2 Driver	Entering new market and/or developing new product #3 Driver

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* 12. What is your company’s planned revenue growth for the next 12 months?

100% or more

75% to 99%

50% to 74%

25% to 49%

10% to 24%

1% to 9%

Less than 1%

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* 13. What is your company’s planned profit growth for the next 12 months?

60% or more

40% to 59%

20% to 39%

0% to 19%

-1% to -19%

-20% to -39%

-40% or less

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* 14. What are the most important measurements you use to track your business? (Check all that apply.)

Revenue growth

Revenue per customer

MRR/CMRR (Monthly Recurring Revenue / Contracted Monthly Recurring Revenue)

Pipeline

Bookings

CAC (Customer Acquisition Cost)

DSO (Days Sales Outstanding)

Churn

Cost of revenue

Other (please specify)

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* 15. What software delivery and deployment methods is your company offering? What delivery methods will you offer next year? (Check all that apply)

	2014	2015
Traditional software (single tenant, on premises) – perpetual license	Traditional software (single tenant, on premises) – perpetual license 2014	Traditional software (single tenant, on premises) – perpetual license 2015
Traditional software (single tenant, on premises) – subscription license	Traditional software (single tenant, on premises) – subscription license 2014	Traditional software (single tenant, on premises) – subscription license 2015
Traditional software hosted in a private cloud – perpetual license	Traditional software hosted in a private cloud – perpetual license 2014	Traditional software hosted in a private cloud – perpetual license 2015
Traditional software hosted in a private cloud – subscription license	Traditional software hosted in a private cloud – subscription license 2014	Traditional software hosted in a private cloud – subscription license 2015
Software as a Service (SaaS) (multi-tenant) hosted in a public cloud – subscription license	Software as a Service (SaaS) (multi-tenant) hosted in a public cloud – subscription license 2014	Software as a Service (SaaS) (multi-tenant) hosted in a public cloud – subscription license 2015

Other (please specify)

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* 16. Which one of the following best describes your software company’s product strategy?

Multiple solutions integrated as a suite

Multiple solutions offered separately

Single solution offering

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* 17. On a scale of 0 to 5 ( where 0 is “not applicable,” 1 is lowest, and 5 is highest), please rate the following financial processes:

	Importance of this process to my organization	Level of ease for my organization to complete this process	Level in which cloud computing has improved or will improve this process
Quick and accurate revenue and expense planning / forecasting	Quick and accurate revenue and expense planning / forecasting Importance of this process to my organization menu	Quick and accurate revenue and expense planning / forecasting Level of ease for my organization to complete this process menu	Quick and accurate revenue and expense planning / forecasting Level in which cloud computing has improved or will improve this process menu
Visibility, accuracy, and efficiency in the Lead-to-Cash process	Visibility, accuracy, and efficiency in the Lead-to-Cash process Importance of this process to my organization menu	Visibility, accuracy, and efficiency in the Lead-to-Cash process Level of ease for my organization to complete this process menu	Visibility, accuracy, and efficiency in the Lead-to-Cash process Level in which cloud computing has improved or will improve this process menu
Visibility, accuracy, and efficiency in the Procure-to-Pay process	Visibility, accuracy, and efficiency in the Procure-to-Pay process Importance of this process to my organization menu	Visibility, accuracy, and efficiency in the Procure-to-Pay process Level of ease for my organization to complete this process menu	Visibility, accuracy, and efficiency in the Procure-to-Pay process Level in which cloud computing has improved or will improve this process menu
Accurate revenue recognition, deferral, and reporting	Accurate revenue recognition, deferral, and reporting Importance of this process to my organization menu	Accurate revenue recognition, deferral, and reporting Level of ease for my organization to complete this process menu	Accurate revenue recognition, deferral, and reporting Level in which cloud computing has improved or will improve this process menu
Visibility into the utilization and profitability of the Professional Services Organization	Visibility into the utilization and profitability of the Professional Services Organization Importance of this process to my organization menu	Visibility into the utilization and profitability of the Professional Services Organization Level of ease for my organization to complete this process menu	Visibility into the utilization and profitability of the Professional Services Organization Level in which cloud computing has improved or will improve this process menu
Delivering real-time, relevant financial information and KPI performance to all stakeholders to drive the business	Delivering real-time, relevant financial information and KPI performance to all stakeholders to drive the business Importance of this process to my organization menu	Delivering real-time, relevant financial information and KPI performance to all stakeholders to drive the business Level of ease for my organization to complete this process menu	Delivering real-time, relevant financial information and KPI performance to all stakeholders to drive the business Level in which cloud computing has improved or will improve this process menu
Streamlining the financial consolidation and close process	Streamlining the financial consolidation and close process Importance of this process to my organization menu	Streamlining the financial consolidation and close process Level of ease for my organization to complete this process menu	Streamlining the financial consolidation and close process Level in which cloud computing has improved or will improve this process menu
Optimizing the customer renewal process and decreasing churn	Optimizing the customer renewal process and decreasing churn Importance of this process to my organization menu	Optimizing the customer renewal process and decreasing churn Level of ease for my organization to complete this process menu	Optimizing the customer renewal process and decreasing churn Level in which cloud computing has improved or will improve this process menu

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* 18. Do you expect to address any of these financial processes in the next 12 months via any of the following methods? Please rate the likelihood on a scale of 1 to 5 where 1 is unlikely and 5 is very likely.

	1 (unlikely)	2	3	4	5 (very likely)
Implement a new financial management / ERP system	Implement a new financial management / ERP system 1 (unlikely)	Implement a new financial management / ERP system 2	Implement a new financial management / ERP system 3	Implement a new financial management / ERP system 4	Implement a new financial management / ERP system 5 (very likely)
Add on or re-implementation of existing financial management / ERP system	Add on or re-implementation of existing financial management / ERP system 1 (unlikely)	Add on or re-implementation of existing financial management / ERP system 2	Add on or re-implementation of existing financial management / ERP system 3	Add on or re-implementation of existing financial management / ERP system 4	Add on or re-implementation of existing financial management / ERP system 5 (very likely)
Implement a budgeting, planning, and forecasting solution	Implement a budgeting, planning, and forecasting solution 1 (unlikely)	Implement a budgeting, planning, and forecasting solution 2	Implement a budgeting, planning, and forecasting solution 3	Implement a budgeting, planning, and forecasting solution 4	Implement a budgeting, planning, and forecasting solution 5 (very likely)
Implement a business intelligence / data analysis solution	Implement a business intelligence / data analysis solution 1 (unlikely)	Implement a business intelligence / data analysis solution 2	Implement a business intelligence / data analysis solution 3	Implement a business intelligence / data analysis solution 4	Implement a business intelligence / data analysis solution 5 (very likely)
Implement a financial reporting and analysis solution	Implement a financial reporting and analysis solution 1 (unlikely)	Implement a financial reporting and analysis solution 2	Implement a financial reporting and analysis solution 3	Implement a financial reporting and analysis solution 4	Implement a financial reporting and analysis solution 5 (very likely)
Implement business process changes	Implement business process changes 1 (unlikely)	Implement business process changes 2	Implement business process changes 3	Implement business process changes 4	Implement business process changes 5 (very likely)

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* 19. Which one of the following best describes your title?

Chairman

CEO

President

COO

CFO

Other (please specify)

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* 20. Which of the following best describes your company’s segment?

Applications software

Platform / developer software

Infrastructure software

Security software

Vertical industry software

Other (please specify)

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* 21. What is your company’ annual revenue?

$1 billion or more

$100 - $999 million

$50 - $99 million

$10 - $49 million

Less than $10 million

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* 22. How many employees does your company have?

More than 5,000

1,000 – 4,999

500 – 999

100 – 499

1 – 99

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* 23. What is the financial structure of your company?

Public

Private – backed by venture capital or private equity

Private – backed by individuals or angel investors

Private – self-funded

Partnership

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* 24. Would you be willing to discuss these topics further by phone with SandHill.com in order to gather in-depth insight for the final report?

Yes (enter email address)

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* 1. Compared to the past 12 months, how do you expect the overall U.S. software industry will perform in the next 12 months?

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* 2. How much do you expect the overall U.S. software industry revenue to grow during the next 12 months?

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* 3. Which of the following factors do you believe will have the greatest impact on software industry revenues in 2014-2016?

Question Title

* 4. How much impact is the decline of on-premises software having on your company’s growth in 2013-2014?

Question Title

* 5. What single factor do you believe will be the biggest influence driving customer software spending in the next 12 months?

Question Title

* 6. Rank which types of software projects will be the biggest drivers in customer spending in the next 12 months.

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* 7. What will be the top three growth opportunities for your company over the next 12 months? (Check only three.)

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* 8. Which of the following Internet of Things technologies do you believe will have significant impacts on your company’s business growth in 2014-2016? (check all that apply)

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* 9. What are your company’s top three most important business goals for the next 12 months? (Check only three.)

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* 10. Over the course of the next 12 months, how do you expect your company’s headcount to change?

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* 11. Which of the following are the top drivers of your expected headcount change over the next 12 months?

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* 12. What is your company’s planned revenue growth for the next 12 months?

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* 13. What is your company’s planned profit growth for the next 12 months?

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* 14. What are the most important measurements you use to track your business? (Check all that apply.)

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* 15. What software delivery and deployment methods is your company offering? What delivery methods will you offer next year? (Check all that apply)

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* 16. Which one of the following best describes your software company’s product strategy?

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* 17. On a scale of 0 to 5 ( where 0 is “not applicable,” 1 is lowest, and 5 is highest), please rate the following financial processes:

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* 18. Do you expect to address any of these financial processes in the next 12 months via any of the following methods? Please rate the likelihood on a scale of 1 to 5 where 1 is unlikely and 5 is very likely.

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* 19. Which one of the following best describes your title?

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* 20. Which of the following best describes your company’s segment?

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* 21. What is your company’ annual revenue?

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* 22. How many employees does your company have?

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* 23. What is the financial structure of your company?

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* 24. Would you be willing to discuss these topics further by phone with SandHill.com in order to gather in-depth insight for the final report?

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* 25. To receive a complimentary copy of the final report ($300 value), enter your email address in the box below.