2011 – A year of tremendous expansion in how we serve our Software and SaaS customers

When I end a year, I like to take a moment to step back and appreciate what we accomplished.  2011 has been an incredibly exciting year for Avangate.

We launched our new SkyCommerce Suite, expanded our overall service with close to 1.000 new features and enhancements, delivered new marketing and optimization services, and extended our global presence with new team members and offices, including our new North American headquarters in Redwood Shores, California.  All of this with the aim of helping our customers sell more software through any channel and any model.

It is not too surprising that the software market continues to grow as software plays an increasingly important role in our world (see Andresseen’s view on how “Software is Eating the World“).  More interestingly is the massive shift in how software is being distributed and sold.   The market size of ESD and SaaS will grow from $45Bln to over $120Bln by 2014.  The 3TS Cisco Growth Fund recognized this opportunity with a $6 million investment in Avangate in March of this year, accelerating our growth and strengthening our global presence.

We’ve been honored to serve this market – we participated in, sponsored or organized over fourteen events this year to network, share ideas, and help our customers grow their businesses.  We now have over 2,000 clients, from some of the largest vendors of consumer software titles, such as Bitdefender and Kaspersky, to SaaS vendors including Terapeak and TeamLab.

In addition, our affiliate network has grown to over 27,000 software members – Majorgeeks, Siliconaction.com.br and TopTenServices.net are three power affiliates that joined in 2011.  I’m incredibly proud of the Avangate team for continuing to deliver a mature platform with the scale and flexibility to serve shareware, mid-market, and enterprise software and SaaS companies.  What’s more, we are honored to be recognized in Forrester’s recent report on Solutions For Digital Commerce.

2012 – Prediction, Cloudy with a Chance of Significant Growth

The cloud is not a new concept, but we see this trend accelerating to dominate future initiatives (8 out of 10 new software start-ups are SaaS). The software market will only continue to be driven and disrupted by the rise of the cloud.

What does this boil down to? I particularly liked a blog post by Louis Columbus talking about “stripping away the hype by asking how these technologies [analytics, big data and cloud computing] contribute to excellent customer experiences and greater customer engagement.  Those are the real catalysts of market growth and the greatest disruptive forces at work in enterprise software today.”

While there are many predictions for 2012 (many articles are mentioning growth for next year which is good news – here’s one example about the antivirus sub-vertical; and also check out this Boxing Day treat by Ray Wang), let us spotlight one that is specifically apt for software companies: the transition from systems of transaction to systems of engagements and experience.

Software: engagement across the lifecycle

We feel this is important and has many implications for a software company. As many ISVs transition from perpetual to pay-as-you-go models such as freemium, rental, or subscription, they need to also experiment with new partners and affiliates and manage sales worldwide through any channel, online and offline.  The challenge is to do this while providing a flexible and frictionless customer experience across the software lifecycle. We have focused on this in 2011 with our integrated SkyCommerce solution and are continuing this focus into 2012.

Software companies need to have the platform to effectively engage and create the right experiences for their customers and need to be able to do it in a way that complements, and not alienates, the resellers which still make up over 50% of software sales today.

Likewise, software resellers and distributors need to be able to take advantage of these industry shifts, continue to increasingly migrate their businesses online and focus on emerging trends, such as aggregating cloud services.

Meet with us

Stay tuned for new and exciting things we’ve planned for 2012. To start with, meet the team at the first industry event we’re attending next year: Affiliate Summit West, January 8-10, Las Vegas, USA.

Happy 2012 and best wishes from all of us here at Avangate!

P.S. Your point of view for 2012?

We would love to hear what you think are some of the key trends that will drive your sales in 2012. We will continue to build upon these issues into the New Year on this blog and look forward to continuing the conversation!

The software market today is driven by the rise of cloud computing, forcing independent software vendors (ISVs) to fight commoditization-driven margin pressure, expand to new channels and markets, and move to “frictionless” self-service transactions. These new delivery models have irrevocably altered how software is developed, distributed and consumed…

… that was the heavy “marketing” intro. Now to the real world!

Actually, the truth is that the software world has changed and continues to change at a rapid pace. So let’s not just talk about it, let’s get together, learn how to understand the market challenges from the best in the industry and from each other, adapt these to our own reality, and do better.

So Avangate is inviting you to join us for a series of events during November and December – pick the location closest to you:  US, UK or China:
•    San Francisco: Thursday, November 10th, 2011, Zibibbo Restaurant
•    New York: Friday, November 18th, 2011, Crown Royalton Hotel
•    Beijing: Saturday, November 19th, 2011, Beijing Huang Yuan Hotel Ballroom
•    London: Thursday, December 8th, 2011, the Hospital Club

We’ve invited great speakers: Brian K. Walker, Vice President & Principal Analyst, Forrester Research, Inc., R “Ray” Wang, Principal Analyst and CEO, Constellation Research Group, Geno Prussakov, Affiliate Marketing Expert, AM Navigator LLC – check the links above to learn who is speaking at each location.

We’ll bring to the table not only great food, but also tips and guidance (and more!) on how to sell software and SaaS solutions in a world of many channels and many models.

Next step: register here. You’ll hear back from us – a friendly warning that places are limited and filling up fast!

Looking forward to meeting you there!

Here we are, in the end of 2009, patiently waiting for the New Year party and thinking about 2009, about the good and the bad and the next year :). We are all proud to have been able to enrich our software selling platforms with plenty of features, basically meant to help more vendors reach more clients.

And we were very happy to be rated as top eCommerce provider by our clients, in the survey made by Andy Brice.

We are particularly happy with the progress made with the Avangate shopping cart’s conversion rates. Using advanced analytics applications such as Omniture and extensive A/B testing, we obtained control over every tiny detail of the shopping cart – and this flexibility translated into higher conversion rates.

I’m really excited to bring to your attention the brand new book written by our friend and collaborator, Bob Walsh.  It’s called “The Web Startup Success Guide” and its official launch date is next week, on the 22nd of July, 2009 (you can find it on Amazon). The book promises to be a great resource for startups, the must-read type and I can’t wait to get a copy:). I promise a larger review after I read the whole book, until then, just wanted to share with you a short excerpt about Avangate.

Of course, other eCommerce providers are shortly reviewed in Bob’s book, but Avangate is his “no 1″:D. So here’s the whole description of Avangate in “The Web Startup Success Guide”:

"The Web Startup Success Guide", by Bob Walsh

The first alternative to PayPal I recommend is Avangate (http://www.avangate.com), for two reasons. First, over the years I’ve met and talked with a lot of Avangate’s management and staff at all sorts of startup/microISV conferences and events they sponsor or at which they speak or participate. This is a company that well and truly likes and supports startups.

Second, and more tellingly, when people running startups and microISVs swap recommendations as to who to use for e-commerce at those various conferences or at huge public forums such as Joel on Software Business of Software (http://discuss.joelonsoftware.com/default.asp?biz) or private boards such as that run by the Association of Shareware Professionals (http://www.asp-shareware.org), you find nothing but positive recommendations when it comes to Avangate.

Avangate does more than process payments. From fielding a solid affiliate program to robust sales and lead analytics, software download, and physical fulfillment and registration key delivery, this company can make a lot of your startup’s headaches go away. Of course, more service means you pay for more than bare-bones credit card processing – depending on which services you want, you’ll pay somewhere between 4.9% and 8% per sale.

I bet that if you are reading the Avangate blog, you would love to hear how things are going around here. As head of the Avangate Marketing Department, I’m in the position to know a little bit about everything, which probably makes me the right person to talk about it.

Not sure if you know, but before starting Avangate, we were in the security business, with the RAV antivirus that we sold to Microsoft in 2003. And that included a lot of selling and marketing expertise we gathered during RAV’s 9 years. I know you might not perceive an eCommerce provider this way, but we are still in the business of selling software, just like you. In a way, everything that we’ve learned about selling software before applies here on a greater scale.

So, how does it feel to work for an eCommerce provider?