The Global Software Industry in 2007 Harvard Case Solution & Analysis

This research note provides a snapshot of the global software industry, as it is an important transition period in 2007. Annual McKinsey study shows that the proportion of the software IT budget in 2007 is about 31.3%, compared with 29.6% in 2006 and is expected to reach 36% in 2009. Internal and external financing, offered an unprecedented breeding ground for software innovation. Software development has become a commodity and customer orientation, and developing services in the wards. These service-oriented architecture allows users to focus on the business logic and functions, and not to the underlying IT infrastructure. New business models such as software as a service, gave customers the ability to pay based on their actual use of the software, and not to the high initial cost and technical difficulties purchasing and installing software. Also, with Web 2.0 applications, Web has become a platform for people to share and communicate. Along with the off shoring and open source software, all these changes are challenging the traditional model of licensing of the software industry. "Hide
by Minyi Huang, Ali Farhoomand Source: University of Hong Kong, 6 pages. Publication Date: October 26, 2007. Prod. #: HKU689-PDF-ENG

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