This research note provides a snapshot of the global software industry, as it experiences a big change in 2007. McKinsey annual survey shows that the software in 2007 by 31.3% up from 29.6% in 2006 and is expected to reach the share of the IT budget 36% in 2009. Internal and external financing have provided an unparalleled medium for software innovation. Software development has evolved raw materials and customer-oriented services and stations. This service-oriented architecture … Read more »

This research note provides a snapshot of the global software industry, as it experiences a big change in 2007. McKinsey annual survey shows that the software in 2007 by 31.3% up from 29.6% in 2006 and is expected to reach the share of the IT budget 36% in 2009. Internal and external financing have provided an unparalleled medium for software innovation. Software development has evolved raw materials and customer-oriented services and stations. The service-oriented architectures that enable users to focus on business logic and functions, rather than the underlying IT infrastructure. New business models such as software-as-a-service, customers have the option to pay on the basis of the actual use of the software instead of facing the high cost and technical complexity of buying and installing software. Even with Web 2.0 applications, the Web has to share a platform for people and socialize. Together with offshoring and open source, all of these changes challenge the traditional licensing model of the software industry.
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from
Minyi Huang,
Ali Farhoomand
Source: University of Hong Kong
6 pages.
Publication Date: Oct 26, 2007. Prod #: HKU689-PDF-ENG
The Global Software Industry in 2007 HBR case solution

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