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This research is provided for historical perspective;
portions of this document may not reflect current conditions.






Long-Term Trends That Will Radically Alter Licensing in the Software Market
18 October 2007
 
Alexa Bona   William R. Snyder  

We outline the long-term disruptive trends that will change the dynamics of software licensing and erode the lock-in experienced by buyers of software. These trends also will reduce the profits of established software vendors.







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Pages: 9








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Table of Contents



    
Analysis

1.0
    
Introduction
2.0
    
Software Market Has High Margins Owing to High Switching Costs and Low Competition
3.0
    
Issues Such as Maintenance Frustrate Users
4.0
    
Trends That Will Transform the Software Market

4.1
    
Increased Use of BPO
4.2
    
Increased Use of SaaS
4.3
    
Low-Cost Development Locations Combined With Modular Architectures
4.4
    
The Emergence of Third-Party Support Offerings
4.5
    
Growing Interest in Open-Source Software
4.6
    
Emerging Chinese Software Companies
4.7
    
Rapid Expansion of Chinese, Indian and Brazilian Markets Drives Demand for Lower Costs

    
Recommended Reading


List of Figures



Figure 1. 
Software Market Dynamics
 



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Resource Id: 533714