The Software Market is Changing: The Impact of the Services Trend

Over the past few years several business and technology trends are influencing the software market and vendor business models. Trends such as Software-as-a-Service (SaaS), Services Oriented Architecture (SOA), cloud computing, open source software, outsourcing of IT, and enterprise customers driving to run their IT as a service business are all having significant impacts on the computer software industry. In many cases vendors are finding it more profitable to move beyond the traditional “software vendor” mold and are morphing into services businesses, internet/web businesses or consulting firms.

With growing SaaS adoption in the business environment driving the evolution of the software services market, as also indicated in this recent SaaS survey, SaaS solutions are starting to evolve from point products to web-based platforms and integrated vertical networks to satisfy specific business needs.

These trends are being driven by the globalization of business. This is leading to increased or new competition, and the resulting need for enterprise customers to be more agile, productive, and cost-aware than ever before.

To win in today's market, software vendors need to properly define and position their product to meet and exceed changing customer needs. For enterprise deployments, checklists such as this SaaS customer readiness checklist can help ensure a successful adoption.

Given the changes in the computer software industry today, it's critical for software companies to have a strong, current business plan. For software-as-a-service providers, a well-thought-out SaaS business plan is even more important.

Click here for a summary of the top software vendors of 2008

Click here for a summary of the impact of software trends on the business of software

Click here for more detail on business areas and verticals adopting SaaS

Click here to understand the impact of software industry changes to your business model.

Click here for some tips on marketing software in a services-oriented world.

Click here for software sales advice as the market moves to a services model.

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