Aberdeen conducts extensive data collection and research on hundreds of software sectors. Our data and research coverage includes factors such as: buyer demand; buyer selection preferences; buyer perception of vendors; market share; and a range of end-user and buyer behaviors. In these posts, we share high-level sector insight for the benefit of all sector participants.
Future Demand and Market Segmentation
Traditionally, most companies have approached market segmentation in a fairly generic and static way, relying almost exclusively on three data points: company size; industry; and geography. We have found, however, that when companies take a more dynamic approach to segmentation, they outperform those taking the generic approach.
A dynamic approach to segmentation focuses on future demand by industry. Unfortunately, until now, it has been very hard to see future demand. At best, companies have tried to predict future demand by analyzing internal data, which is necessarily backward looking and, of course, limited by the company’s visibility into the marketplace.
To highlight how forward indicators of demand can be used for market segmentation, consider the demand patterns of Fortune 1000 companies in the case of Data Loss Prevention software.
The chart below represents the distribution of Fortune 1000 companies by industry. The grey part of each bar indicates the total number of companies in that particular industry. The green part of the bar indicates the number of companies within each industry actively engaging with web content relevant to Data Loss Prevention.
Sustained at a high level for an extended period of time, this online activity is a forward indicator of demand. Depending on average sales cycles, it provides a demand forecast by industry 3-9 months out.
In absolute numbers, the Business Services and Manufacturing industries exhibit high levels of research activity around Data Loss Prevention solutions. As a percentage of the total number of companies, the Finance, Insurance, Retail and Healthcare industries also demonstrated a high level of in-market activity. This suggests that these industries should serve as high-priority segments for vendors in this sector.
We recommend clients apply this demand forecast approach for their target market definition to drive better performance.
Vendors actively competing in the Data Loss Prevention sector include: CloudCodes, Symantec, Trustwave, McAfee, Check Point, Digital Guardian, Forcepoint, GTB Technologies, Spirion, Clearswift, WatchGuard, and Fidelis Cybersecurity.
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