Last Updated on January 12, 2022
Before getting into the evanescent nature of the software industry, it is important to first shed some light upon its history and origin.
The word ‘software’ was first coined by chance in 1953. It was then published for the first time in 1960’s, when computers were manufactured only by a few commercial and private computer vendors like UNIVAC and IBM. The ‘Computer Usage Company’ was the first to construct software and provide related services. The software industry began to expand when the use of computers became more common in business, universities, hospitals and at government offices. These expanded the demand for the softwares as per their specific requirements.
Previously, they were built by a whole team of programmers. Later, the companies began to integrate operating system softwares along with the programming systems into the computers. A period of great innovation with the intervention of new technologies and programming languages methodologies was started when Digital Equipment Corporation introduced relatively less expensive microcomputers, which then became more approachable to the general public. Micro-computers built many new softwares followed by the IBM resulting in the IBM AS400.
In mid 1970’s, the software industry expanded further with the arrival of personal computers which created the demand for other software’s such as games, applications and utilities. Microsoft’s first operating system DOS, was the best system at that time. Later in the 21st century a great business model, called software as a service SaaS, was launched which lowered the concern regarding software piracy.
Software Industry Today with Plentiful Innovations and Amazing Developments
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Programming breakthroughs and innovations still continue today in the Silicon Valley and other tech spots like Boston and Austin etc. Today, the race to come up with a killing application keeps all I.T professionals busy. Usually, these softwares are purchased by the high class business owners. The software, now, comes as an integrated package containing applications, operating systems, and related utilities.
Present Applications of Software
Unlike the olden times when all the applications were confined to a few types of computers, presently the application of softwares has become more varied. Today their usage ranges from all those computer chips devices containing devices such as in-car global positioning systems, cell phones, personal digital assistance, and smart household and business appliances. Today, these softwares allow you to save a considerable amount of money by outsourcing work to the other less expensive countries. With the expansion in software industry, candidates with the right qualifications continue to find jobs all over the globe.
Presently, software installation has become more of a service provided via the internet from the host company’s server. In addition to this, the software’s are being increasingly applied in other areas. Gaming is one such area where shifting of the extreme display is done through powerful animation softwares. Then there are system softwares such Microsoft windows, Apple’s Max OS X and Linux etc. Another major field for software application is the education arena where softwares are used by students to learn mathematics, other languages and geography etc. with much ease.
Top Software Companies Today
The top most companies for the infrastructure softwares services are as listed:
The enterprise softwares are made by the following companies:
- SAP AG
Security software makers are:
- Trend Micro
Then there are many companies designing customer’s specification softwares including:
- BlackBoard working for schools
- SunGard working for banks
- Qualcomm and CyberVision are making softwares for the telecom industry
Market Share of Software Industry
As per the market researchers in 2008, the estimated worth of market industry was $303.8 billion. However, the DataMonitor’s forecast of the estimate worth of software industry for the year 2013 is US$ 457 billion. The software industry has also been the subject of several mergers and acquisitions, as evident by the statistics according to which 41,136 mergers and acquisitions took place since 1988 to 2010, having a value of US$ 49 billion.
Recent Trends in Software Industrys
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The most recent trends show that companies, such as SAP, are struggling their way towards a bigger market share. According to business week, the SAP has included several objectives onto its growth plan which, if implemented, would make it the world’s third largest maker in the software industry. However, top software companies like IBM, Oracle, Hewlett Packard and Microsoft provide fierce competition to SAP.
The acquisition of popular companies in the recent years, for example Google, where someone created a wonderful piece which later it got purchased in millions and is now worth billions, is a trend that continuous to this day. Currently, Microsoft has considered to buy $ 500 million shares of the popular social media website – Facebook. This would raise Microsoft’s worth to $15 billion.
Where Software Industry is Heading Now; Future Prospects
With the ever changing nature of software industry, it is impossible not to ponder about its status 5- 10 years from now. This topic of debate has brought forth numerous speculations from the various I.T Experts. For MIT expert professor Mike Stonebraker, the future of software industry is Open Source. According to him, there won’t be any sales team in the future. Interested IT professionals would be able to purchase the software directly from the software vendor. They would simply go to the vendor’s website, read the reviews and if interested they will be able to simply download and install the software upon purchase.
This technique of self-service marketing will be encouraged. Other experts agree that the software industry is becoming faster paced. It is moving away from running applications on hardware. It will enable us to roll our own applications. All in all, in the future, the software industry is going to emphasize the role of the software as a service. Thus, with the advancements taking place, the future of software industry appears to be bright and promising.
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