Computer Software

Computer Software

Brief Excerpt from Industry Overview Chapter:

Companies in this industry design and publish computer software. Major companies include US-based Activision Blizzard, Adobe, IBM, Microsoft, NortonLifeLock (formerly Symantec), Oracle, and Salesforce, as well as Dassault Systemes (France), The Sage Group (UK), and SAP (Germany).

COMPETITIVE LANDSCAPE

The health of the global economy heavily influences spending for software products. The success of software companies depends on technical expertise and effective marketing. Small software companies compete mainly by targeting niche markets or developing new technology. Many small companies form alliances with larger ones to market their products. The US software industry is concentrated: the 50 largest companies generate about 75% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product categories include application software (such as enterprise and accounting software, office suites, and games), which accounts for about 45% of industry revenue. System software - including operating systems, network and database management software, and related development tools - makes up about 20%. Some companies also provide IT support, consulting, and training services, which generate a combined 10% of industry revenue.