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Software industry

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The software industry includes businesses for development, maintenance and publication of software that are using different business models, mainly either "license/maintenance based" (on-premises) or "Cloud based" (such as SaaS, PaaS, IaaS, MaaS, AaaS, etc.). The industry also includes software services, such as training, documentation, and consulting.

History

Size of the industry

According to market researcher DataMonitor, the size of the worldwide software industry in 2008 was US$303.8 billion, an increase of 6.5% compared to 2007. Americans account for 42.6% of the global software market's value.[1]

Mergers and acquisitions

The software industry has been subject to a high degree of consolidation over the past couple of decades. From 1988 to 2010, 41,136 mergers and acquisitions have been announced with a total known value of US$1,451 billion[2] ($1.45 trillion). The highest number and value of deals was set in 2000 during the high times of the dot-com bubble with 6,757 transactions valued at $447 billion. In 2010, 1,628 deals were announced valued at $49 billion.

Business models within the software industry

Business models of software companies have been widely discussed.[3][4] Network effects in software ecosystems, networks of companies, and their customers are an important element in the strategy of software companies.[5]

See also

References

  1. ↑ DataMonitor - Abstract from Global Software Industry Guide - 2008
  2. ↑ "Statistics on Mergers & Acquisitions (M&A) - M&A Courses | Company Valuation Courses | Mergers & Acquisitions Courses". Imaa-institute.org. http://www.imaa-institute.org/statistics-mergers-acquisitions.html#M&A_Ind_Software. Retrieved on 2013-02-04. 
  3. ↑ Karl M. Popp and Ralf Meyer (2010). Profit from Software Ecosystems: Business Models, Ecosystems and Partnerships in the Software Industry. Norderstedt, Germany: BOD. ISBN 3-8391-6983-6. 
  4. ↑ Cusumano M. (2003) Finding Your balance in the Products and Service Debate, Communications of the ACM. Vol. 46:3
  5. ↑ Software Ecosystem: Understanding an Indispensable Technology and Industry. Cambridge, MA, USA: MIT Press. 2003. ISBN 0-262-13432-2. 
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