Survey for 2015 CEO/CFO Outlook Study

Welcome to Sand Hill’s annual “outlook” survey, a component of our study on software executives’ outlook on trends for the software industry in 2015-2016. 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, Sand Hill and the study’s underwriter Intacct will provide you a complimentary copy of the report on the study findings.

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* 1. 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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* 2. 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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* 3. Rank which types of software projects will be the biggest drivers in customer spending in the next 12 months. (Rank the top 6.)

	#1 Driver	#2 Driver	#3 Driver	#4 Driver	#5 Driver	#6 Driver
Transitioning existing software to the cloud	Transitioning existing software to the cloud #1 Driver	Transitioning existing software to the cloud #2 Driver	Transitioning existing software to the cloud #3 Driver	Transitioning existing software to the cloud #4 Driver	Transitioning existing software to the cloud #5 Driver	Transitioning existing software to the cloud #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 and collaboration solutions	Enterprise social and collaboration solutions #1 Driver	Enterprise social and collaboration solutions #2 Driver	Enterprise social and collaboration solutions #3 Driver	Enterprise social and collaboration solutions #4 Driver	Enterprise social and collaboration solutions #5 Driver	Enterprise social and collaboration solutions #6 Driver
Security solutions	Security solutions #1 Driver	Security solutions #2 Driver	Security solutions #3 Driver	Security solutions #4 Driver	Security solutions #5 Driver	Security solutions #6 Driver

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

Launch new products

Emphasis on customer experience

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 channels of distribution

Enter new geographies

Grow through acquisition

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* 5. What areas of your company’s software are accessible to employees using mobile devices? (Check all that apply).

	Yes, currently accessible on mobile devices	Not yet accessible on mobile devices but will be accessible later in 2015	No plans to make this accessible to mobile devices for at least the next 2 years	Not Applicable
Email	Email Yes, currently accessible on mobile devices	Email Not yet accessible on mobile devices but will be accessible later in 2015	Email No plans to make this accessible to mobile devices for at least the next 2 years	Email Not Applicable
Business intelligence apps	Business intelligence apps Yes, currently accessible on mobile devices	Business intelligence apps Not yet accessible on mobile devices but will be accessible later in 2015	Business intelligence apps No plans to make this accessible to mobile devices for at least the next 2 years	Business intelligence apps Not Applicable
Customer Relationship Management (CRM) apps	Customer Relationship Management (CRM) apps Yes, currently accessible on mobile devices	Customer Relationship Management (CRM) apps Not yet accessible on mobile devices but will be accessible later in 2015	Customer Relationship Management (CRM) apps No plans to make this accessible to mobile devices for at least the next 2 years	Customer Relationship Management (CRM) apps Not Applicable
Sales and marketing apps	Sales and marketing apps Yes, currently accessible on mobile devices	Sales and marketing apps Not yet accessible on mobile devices but will be accessible later in 2015	Sales and marketing apps No plans to make this accessible to mobile devices for at least the next 2 years	Sales and marketing apps Not Applicable
Internal collaboration apps	Internal collaboration apps Yes, currently accessible on mobile devices	Internal collaboration apps Not yet accessible on mobile devices but will be accessible later in 2015	Internal collaboration apps No plans to make this accessible to mobile devices for at least the next 2 years	Internal collaboration apps Not Applicable
External collaboration apps with customers and/or business partners (e.g., Dropbox, Skype, Google Docs, Yahoo Messenger)	External collaboration apps with customers and/or business partners (e.g., Dropbox, Skype, Google Docs, Yahoo Messenger) Yes, currently accessible on mobile devices	External collaboration apps with customers and/or business partners (e.g., Dropbox, Skype, Google Docs, Yahoo Messenger) Not yet accessible on mobile devices but will be accessible later in 2015	External collaboration apps with customers and/or business partners (e.g., Dropbox, Skype, Google Docs, Yahoo Messenger) No plans to make this accessible to mobile devices for at least the next 2 years	External collaboration apps with customers and/or business partners (e.g., Dropbox, Skype, Google Docs, Yahoo Messenger) Not Applicable
Proprietary LOB or department apps	Proprietary LOB or department apps Yes, currently accessible on mobile devices	Proprietary LOB or department apps Not yet accessible on mobile devices but will be accessible later in 2015	Proprietary LOB or department apps No plans to make this accessible to mobile devices for at least the next 2 years	Proprietary LOB or department apps Not Applicable

Other (please describe)

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* 6. Which of the following describes your company’s situation regarding the Internet of Things? (Rank the top three.)

	#1	#2	#3
It appears to be more of an upcoming competitive threat to our business in 2015-2016 than in 2014 because of initiatives of our existing competitors	It appears to be more of an upcoming competitive threat to our business in 2015-2016 than in 2014 because of initiatives of our existing competitors #1	It appears to be more of an upcoming competitive threat to our business in 2015-2016 than in 2014 because of initiatives of our existing competitors #2	It appears to be more of an upcoming competitive threat to our business in 2015-2016 than in 2014 because of initiatives of our existing competitors #3
It appears to be more of an upcoming competitive threat to our business in 2015-2016 than in 2014 because of new players in our space	It appears to be more of an upcoming competitive threat to our business in 2015-2016 than in 2014 because of new players in our space #1	It appears to be more of an upcoming competitive threat to our business in 2015-2016 than in 2014 because of new players in our space #2	It appears to be more of an upcoming competitive threat to our business in 2015-2016 than in 2014 because of new players in our space #3
It appears to present growth opportunities for us in 2015-2016	It appears to present growth opportunities for us in 2015-2016 #1	It appears to present growth opportunities for us in 2015-2016 #2	It appears to present growth opportunities for us in 2015-2016 #3
To play effectively in the IoT market, we need to develop or advance our external partner relationships	To play effectively in the IoT market, we need to develop or advance our external partner relationships #1	To play effectively in the IoT market, we need to develop or advance our external partner relationships #2	To play effectively in the IoT market, we need to develop or advance our external partner relationships #3
We are discussing/planning a subsidiary or spinout for our IoT business	We are discussing/planning a subsidiary or spinout for our IoT business #1	We are discussing/planning a subsidiary or spinout for our IoT business #2	We are discussing/planning a subsidiary or spinout for our IoT business #3
We have not yet developed our strategy for entering the IoT market	We have not yet developed our strategy for entering the IoT market #1	We have not yet developed our strategy for entering the IoT market #2	We have not yet developed our strategy for entering the IoT market #3
Not applicable – currently we don’t foresee trying to enter the IoT market with products or services for at least 3 years	Not applicable – currently we don’t foresee trying to enter the IoT market with products or services for at least 3 years #1	Not applicable – currently we don’t foresee trying to enter the IoT market with products or services for at least 3 years #2	Not applicable – currently we don’t foresee trying to enter the IoT market with products or services for at least 3 years #3

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* 7. Which of the following are significant concerns for your company in 2015? (Rank the top five.)

	#1	#2	#3	#4	#5
Data integration	Data integration #1	Data integration #2	Data integration #3	Data integration #4	Data integration #5
Ensuring IT ops and lines of business are better aligned in strategy and coordination	Ensuring IT ops and lines of business are better aligned in strategy and coordination #1	Ensuring IT ops and lines of business are better aligned in strategy and coordination #2	Ensuring IT ops and lines of business are better aligned in strategy and coordination #3	Ensuring IT ops and lines of business are better aligned in strategy and coordination #4	Ensuring IT ops and lines of business are better aligned in strategy and coordination #5
Implementing an analytics solution enabling more effective data-driven decision making	Implementing an analytics solution enabling more effective data-driven decision making #1	Implementing an analytics solution enabling more effective data-driven decision making #2	Implementing an analytics solution enabling more effective data-driven decision making #3	Implementing an analytics solution enabling more effective data-driven decision making #4	Implementing an analytics solution enabling more effective data-driven decision making #5
Moving our legacy apps to cloud	Moving our legacy apps to cloud #1	Moving our legacy apps to cloud #2	Moving our legacy apps to cloud #3	Moving our legacy apps to cloud #4	Moving our legacy apps to cloud #5
Cash flow/burn	Cash flow/burn #1	Cash flow/burn #2	Cash flow/burn #3	Cash flow/burn #4	Cash flow/burn #5
Additional rounds/sources of funding	Additional rounds/sources of funding #1	Additional rounds/sources of funding #2	Additional rounds/sources of funding #3	Additional rounds/sources of funding #4	Additional rounds/sources of funding #5
Making more of our apps accessible on mobile devices	Making more of our apps accessible on mobile devices #1	Making more of our apps accessible on mobile devices #2	Making more of our apps accessible on mobile devices #3	Making more of our apps accessible on mobile devices #4	Making more of our apps accessible on mobile devices #5
Implementing new digital/social sales/marketing strategies	Implementing new digital/social sales/marketing strategies #1	Implementing new digital/social sales/marketing strategies #2	Implementing new digital/social sales/marketing strategies #3	Implementing new digital/social sales/marketing strategies #4	Implementing new digital/social sales/marketing strategies #5
Threat from new competitors in our market	Threat from new competitors in our market #1	Threat from new competitors in our market #2	Threat from new competitors in our market #3	Threat from new competitors in our market #4	Threat from new competitors in our market #5
M&A strategies	M&A strategies #1	M&A strategies #2	M&A strategies #3	M&A strategies #4	M&A strategies #5
Recruiting/hiring	Recruiting/hiring #1	Recruiting/hiring #2	Recruiting/hiring #3	Recruiting/hiring #4	Recruiting/hiring #5

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* 8. Regarding talent and hiring, which of the following best describe your company’s current situation? (Check all that apply.)

We need to hire talent in the next 6 months but haven’t yet found the right talent

We recognize that we need to hire more talent in 2015-2016 than we projected 6 – 8 months ago

We need to hire more talent in 2015-2016 for new products requiring new skills

We don’t need new skills, but we need to hire more talent in 2015-2016 to handle our growth

We outsource part of our recruiting process because of challenges in finding the right skills

We outsource part of our recruiting process to accelerate the process or because we lack the internal resources for the function

We outsource all of our recruiting process

We are having issues with retention due to our highly competitive market

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* 9. Have any of your customers asked you to take Bitcoin or other cryptocurrencies for commerce?

Yes, in 2014 and/or 2015

No, but we’ve talked about it and think it could happen in 2015 - 2016

Not sure

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* 10. What are your company’s 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
Ensuring decision making is more data driven by providing timely, accurate financial information to internal and external stakeholders	Ensuring decision making is more data driven by providing timely, accurate financial information to internal and external stakeholders #1 Goal	Ensuring decision making is more data driven by providing timely, accurate financial information to internal and external stakeholders #2 Goal	Ensuring decision making is more data driven by providing timely, accurate 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

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* 11. 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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* 12. 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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* 13. 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)

Churn

Cost of revenue

Other (please specify)

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

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* 16. What are your company’s top three challenges to raising new capital (debt or equity) for your business? (Check only three.)

	#1 Challenge	#2 Challenge	#3 Challenge
Producing audit-ready financial statements	Producing audit-ready financial statements #1 Challenge	Producing audit-ready financial statements #2 Challenge	Producing audit-ready financial statements #3 Challenge
Establishing and enforcing financial processes and controls	Establishing and enforcing financial processes and controls #1 Challenge	Establishing and enforcing financial processes and controls #2 Challenge	Establishing and enforcing financial processes and controls #3 Challenge
Modeling future revenue and net income growth	Modeling future revenue and net income growth #1 Challenge	Modeling future revenue and net income growth #2 Challenge	Modeling future revenue and net income growth #3 Challenge
Identifying and explaining various revenue and net income drivers	Identifying and explaining various revenue and net income drivers #1 Challenge	Identifying and explaining various revenue and net income drivers #2 Challenge	Identifying and explaining various revenue and net income drivers #3 Challenge
Assessing the market size and opportunity	Assessing the market size and opportunity #1 Challenge	Assessing the market size and opportunity #2 Challenge	Assessing the market size and opportunity #3 Challenge
Defining your product or company’s value proposition and differentiators	Defining your product or company’s value proposition and differentiators #1 Challenge	Defining your product or company’s value proposition and differentiators #2 Challenge	Defining your product or company’s value proposition and differentiators #3 Challenge

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

Chairman

CEO

President or Managing Director

COO

CFO

CIO

Chief Strategy Officer

Customer Success Officer

Venture capital or angel investor

Other (please specify)

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* 18. 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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* 19. 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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* 20. 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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* 21. 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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* 22. Would you be willing to answer a few additional questions in a 20-minute phone discussion with SandHill.com in order to gather in-depth insight for the final report?

Yes (enter email address)

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

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

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

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

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* 5. What areas of your company’s software are accessible to employees using mobile devices? (Check all that apply).

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* 6. Which of the following describes your company’s situation regarding the Internet of Things? (Rank the top three.)

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* 7. Which of the following are significant concerns for your company in 2015? (Rank the top five.)

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* 8. Regarding talent and hiring, which of the following best describe your company’s current situation? (Check all that apply.)

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* 9. Have any of your customers asked you to take Bitcoin or other cryptocurrencies for commerce?

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

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

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

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

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* 14. 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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* 15. 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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* 16. What are your company’s top three challenges to raising new capital (debt or equity) for your business? (Check only three.)

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

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

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* 19. What is your company’ annual revenue?

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* 20. How many employees does your company have?

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

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* 22. Would you be willing to answer a few additional questions in a 20-minute phone discussion with SandHill.com in order to gather in-depth insight for the final report?

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* 23. To receive a complimentary copy of the final report, enter your email address in the box below.