As the title suggests, software distribution is the process of delivering software from a developer to the end user. This distribution ranges from interpreter distribution to OS server distribution. Software distribution channels are the actual point of customer interaction. It is through these distribution channel system that organization reaches the customer, fulfill their needs and gather vital statistics that can be used to manage customer relationships. The distribution phase is typically followed by unpacking and installation, wherein package management tools are utilized for software installation. Customers are progressively demanding the availability of diverse range of channels. The customers expect direct access 24 hours a day, seven days a week, while, at the same time, seeking personalized services and products according to their needs. The growing significance of cloud in government sector, SMEs and large enterprises are transforming the market and disturbing the orthodox business model of the channel.
Software service providers have traditionally relied on their resellers or distributors to service customers with a local presence at a lesser cost as opposed to their own direct sales model. As firms try to differentiate between themselves by augmenting customer relationships, the distribution channels through which they provide their services becomes a key from a strategic point of view. Firms are thus able to offer custom tailored services to their clients at any time through a comprehensive range of channels either by setting modified prices as per competitive scenario or by consolidating the costs of the license.
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Software Distribution Market: Segmentation
Software Distribution market is segmented on the basis of delivery model, end user vertical and region. On the basis of delivery model, software distribution market can be segmented as physical delivery, electronic software distribution and Software-as-a-Service (SaaS). Software Distribution market can be segmented according to end user vertical which includes public, retail, manufacturing, media & entertainment, transportation & logistics, IT & telecommunication, banking, financial service and insurance (BFSI), healthcare and energy & utility. Regionally, software distribution market can be segmented into North America, Latin America, Western Europe, Eastern Europe, Middle East & Africa (MEA), Asia Pacific excluding Japan (APEJ) and Japan.
Software Distribution Market: Regional Outlook
Software Distribution market is witnessing steady growth and is anticipated to witness single digit CAGR during the projected period. North America was the dominant regional market in 2015 followed by Western Europe. These two regions combined represented market share of more than 35%, but are expected to lose their share to some extent to other regions during the forecast period. Asia Pacific is expected to exhibit highest growth among all the regions due to evolving economy of countries such as India, Philippines and China.
Software Distribution Market: Drivers
Growing acceptance for digital delivery and services across developed and developing regions is accelerating the growth of software distribution market. The emergence of SaaS distribution model is anticipated to help the market grow at a greater CAGR. This can be attributed to factors such as decentralized consumption and working habits as well as cloud hosting space getting cheaper.
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Software Distribution Market: Key Players
The key vendors in the software distribution market include Amazon.com, Google Corporation, Apple Inc., Salesforce.com Inc., Attachmate Corporation, Symantec Corporation, NEC Corporation and IBM Corporation. Major players in the software distribution boost their market share by enhancing sales channels across the globe. Furthermore, introducing economical products & services is another strategy followed by major software distribution market vendors to gain competitive edge.
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