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Computer Software
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US computer software industry involves about 60,000 companies with combined annual revenue of about $240 billion. About 60 percent of industry revenue comes from software publishing; custom programming accounts for the remainder. Large companies include Adobe Systems, CA, Microsoft, Oracle, and Symantec. The US packaged software segment is concentrated: the 50 largest companies generate about 70 percent of revenue. The US custom programming segment is highly fragmented.
The global computer software publishing industry generates more than $450 billion in annual revenue. Major companies based outside the US include Dassault Systèmes (France), Konami (Japan), Sage Group (UK), and SAP (Germany).
COMPETITIVE LANDSCAPE
The US economy heavily influences business spending for software products. The success of programming companies depends heavily on strong technical expertise. The success of packaged-software companies depends on technical expertise and good marketing. Small software companies compete mainly by developing packaged products in small niches or producing custom products for individuals. Many small companies form alliances with larger ones to market their products.
The packaged software industry is capital-intensive: average annual revenue per worker is about $570,000. The custom programming industry is somewhat labor-intensive: average annual revenue per worker is about $140,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Packaged software products are generally programs that can be installed and operated by the customer with little or no assistance, such as an operating system. Custom programming either creates a new software product from scratch, or, more typically, customizes an existing software product...
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