Subject: Re: Revenue structure of US/global SW industry?
From: kmself@ix.netcom.com
Date: Wed, 30 Aug 2000 13:12:30 -0700
Wed, 30 Aug 2000 13:12:30 -0700
On Wed, Aug 30, 2000 at 12:47:58PM -0400, Frank Hecker wrote:
> kmself@ix.netcom.com wrote:
> > Does anyone know the revenue structure (distribution) of the US and/or
> > global SW industry?
> 
> IDC publishes reports on this; the most recent one was "Packaged
> Software: 1999 Worldwide Performance Preliminary Results", IDC Bulletin
> #W21248, January 2000.
> 
> I can't forward you a copy of the report (which I got under the terms of
> CollabNet's IDC subscription), but I can tell you that the top 20
> software vendors accounted for almost half of all software-related
> revenue worldwide, that Microsoft alone accounted for over a tenth
> of all software-related revenue, and that Microsoft and IBM combined
> accounted for over a fifth of of all software-related revenue.

I guess the other interesting question would be:  how many of the bottom
(n - 20) firms are profitable / not-profitable.

Context, BTW, is a friend abroad who's public-agency employer is looking
at a specialized business application and weighing pros and cons of free
software licensing.  Actually, I believe they're considering
productizing, and he's advocating the FS approach.  One of my arguments
being that the SW market's profit structure is highly assymetric.

Thanks for the data.

-- 
Karsten M. Self <kmself@ix.netcom.com>     http://www.netcom.com/~kmself
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