Software industry


Software industry

The software industry comprises businesses involved in the development, maintenance and publication of computer software. The software industry started in the mid-1970s at the time of the personal computer revolution. The industry also includes software services, such as training and consultancy. The largest and most profitable of software companies are located in the United States. As of 2006, the client software industry is dominated by MicrosoftFact|date=March 2008. Software Magazine's 500 list in 2005 shows the total amount of revenue brought in by software companies per locale, with the highest being California due to Silicon Valley and the amount of Fortune 500 software companies residing in that area. [ [http://www.softwaremag.com/SW500/index.cfm?StartRow=1&RowsPer=50&BusCat_Search=&PrimBus_Search=&PrimBusCat_Search=&RankSort=ASC&CompSort=&trk=n&id=5 Software Magazine 500] (2005)]

Overview

There are mainly two types of businesses in the software industry; those developing proprietary software such as Microsoft, and those developing open source software. Developing proprietary software is costly and involves software licensing and the need to protect the software from cracking and piracy.

The main financial return on open source comes from selling services, such as training and support, rather than the software itself. Many contributors to open source software (especially those developing software tools) also feel that there is a significant long-term return in the form of improved resources and capabilities within the software industry. Despite doing much business in properietary software, some companies like Sun Microsystems and IBM participate in developing free and open source software to deter from monopolies and take a portion of their market share. Netscape's actions are an example of this, and thus Firefox has become more popular [Netscape_Navigator#Fall_of_Netscape]

Sectors

Freeware

Freeware is copyrighted computer software which is made available for use free of charge, for an unlimited time, as opposed to shareware where the user is required to pay (e.g. after some trial period or for additional functionality). Authors of freeware often want to "give something to the community", but also want credit for their software and to retain control of its future development. Sometimes when programmers decide to stop developing a freeware product, they will give the source code to another programmer or release the product's source code to the public as free software.

Shareware

Shareware is a marketing method for computer software. Shareware software is typically obtained free of charge, either by downloading from the Internet or on magazine cover-disks. A user tries out the program, and thus shareware has also been known as "try before you buy". A shareware program is accompanied by a request for payment, and the software's distribution license often requires such a payment.

Open source

Open source describes the principles and methodologies to promote open access to the production and design process for various goods, products, resources and technical conclusions or advice. The term is most commonly applied to the source code of software that is made available to the general public with either relaxed or non-existent intellectual property restrictions. This allows users to create user-generated software content through either incremental individual effort, or collaboration.

Size of the Industry

Software Magazines' "Software 500 survey" can be used to gauge the value of the commercial software industry. The "Software 500 survey" consists of data of the top 500 software companies, as ranked by Software Magazine. Total worldwide revenues in 2006 for companies in the "Software 500" list were $394 billion, representing a growth of 3.5% from 2005, when total Software 500 revenue was $381 billion. [ [http://www.softwaremag.com/L.cfm?Doc=984-10/2006 Software Magazine - 2006 Software 500: Deep Concerns Over Security ] ]

See also

* Professional Open Source Business Model
* Computer software
* Software development
* Software publisher
* Software engineering
* World's largest software companies

References

External links

* [http://www.sao.org/ Software Association of Oregon website]
* [http://www.siprofessionals.org/ Software Industry Professionals website]
* [http://www.siia.net/ Software and Information Industry Association website]
* [http://www.softwaremag.com/ Software Magazine website]
* [http://unisoft-technologies.blogspot.com/ Software Development News]
* [http://software.computerdictionaries.org/ Software Terms] A collection of software dictionaries


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Software industry in Karnataka — The software industry in Karnataka state in India has become one of the main pillars of economy. Karnataka stands first among all the states of India in terms of revenue generated from software exports. Software exports from Karnataka amounted to …   Wikipedia

  • Software industry in the People's Republic of China — China s software industry grew at a compound annual growth rate of more than 39% over the period from 2001 to 2007 to reach RMB 506 billion and is further anticipated to grow at a CAGR of nearly 22% through 2012. Contents 1 Growth 2 Top Chinese… …   Wikipedia

  • Software Industry Conference — The Software Industry Conference is an annual conference for software developers, e commerce providers, publishers, and others who work in the software industry. The Software Industry Conference is planned and implemented by the Shareware… …   Wikipedia

  • China Software Industry Association — The China Software Industry Association (CSIA) is the major representative and one of the most active associations in the China Software industry. Its goal is to promote the development of software industry in China and provide a hub with… …   Wikipedia

  • New York Software Industry Association — NYSIA logo The New York Software Industry Association (NYSIA) is a trade association for software, information technology, and Web development companies in the New York City area. NYSIA s mission is to promote and support the growth of this… …   Wikipedia

  • Philippine Software Industry Association — was first established in 1988. It is involved in promoting the Philippines as the preferred choice for software development services. The PSIA (formerly Philippine Software Association) has worked with the Philippine government in developing… …   Wikipedia

  • Software Assurance — (SwA) is defined as “the level of confidence that software is free from vulnerabilities, either intentionally designed into the software or accidentally inserted at anytime during its lifecycle, and that the software functions in the intended… …   Wikipedia

  • Software patent debate — is the argument dealing with the extent to which it should be possible to patent software and computer implemented inventions as a matter of public policy. Policy debate on software patents has been active for years. [Cite book |last=Nichols… …   Wikipedia

  • Software architect — is a general term with many accepted definitions, which refers to a broad range of roles. Generally accepted terminology and certifications began appearing in connection with this role near the beginning of the 21st century. Contents 1 History 2… …   Wikipedia

  • Software bloat — Software bloat, also known as bloatware or elephantware [ [http://www.downloadsquad.com/2008/01/01/the 5 most annoying programs on your pc/ The 5 most annoying programs on your PC Download Squad ] ] , is a term used in both a neutral and… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.