Software Industry Market Research Reports, Analysis & Trends
A typical software company includes business operations of development, maintenance and publication of software. There are several business models that are based either on licensed/ maintenance basis, for example- in the premise or in the building or cloud based (more commonly referred to as Cloud computing) Software industry consists of the part of computer programming activity that is traded between software-producing organization and corporate or individual software user. The software industry consists of three main sectors, programming services, enterprises software products, and shrink-wrapped software products. As the technological opportunities came into big numbers and the scope for business environment to flourish, these three sectors became established.
The most successful firms developed specialized capabilities that enabled them to prosper within their sector. Software industry expanded from its small scale operations in 1960s and it has been the major source of creating vast number of employment and one of the highest contributors to the economy. In the 1990’s, innovation was met with open arms. There were claims of miraculous productivity that were often taken at face value, and venture capitalists were anxious to fund projects for a piece of the pie. With internet, came even more possibilities for the software industry. The software boom of the ‘90’s signified the modern day huge revenues. When computers became more accessible, the software industry transitioned major countries’ work culture and transformed businesses. Software is viewed as the great simplifier of complicated and tedious tasks that usually takes longer hours when done manually.
Software Industry Current Trends
The software industry has come of age and matured in business models. It has gained through operational performance rather than just technology innovations or mergers and acquisitions. In collecting great revenues, organic development has been one of the key factors to drive software industry to such heights.
US alone accounts for 42.6% of the global software market's value. Between 1988 and 2010, 41,136 mergers and acquisitions were announced to a total value of US $1,451 billion. The highest number and value of deals was set in 2000 during the dot-com bubble (also known as internet sector’s rapid growth) with 6,757 transactions valued at $447 billion. According to MarketLine the market growth is expected to exceed 6% between the year 2012-2015, bringing the market close to almost $357 billion. Home use and general business applications lead the market at almost $64 billion, according to a quarter of the overall market that encompasses systems and application software.
There have been few reported trends that have impacted on the scale of business to propel to greater revenues, some examples are- Cloud/Software as a Service (SaaS), in which the different method hosting software applications and customer access is all done via internet; majorly advantageous for the companies that have limited technology personnel. The next big thing is the databases, specifically three, Microsoft SQL Server, IBM DB2 and Oracle. Another trend in practice is of mergers and acquisitions or partnerships and strategic alliances between software vendors for the new and innovative functionality offering capability to the software. Internet has opened up new opportunities for conducting variety of businesses in today’s economy. The software vendors have developed functionality to take advantage of this technology including web browser access, web portals for customers and suppliers, mobile technologies with smart phones & tablets, e-commerce capabilities and much more.
Major Software Industry Players
Major software companies in the market are Microsoft, Oracle, SAP, Symantec, VMware, Adobe Systems, Infosys, Wipro, Intuit, Amadeus IT Group.