The Dynamics of the NEW Software Industry: What it Means for Software Companies Ken Wasch, President, SIIA.

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Presentation transcript:

The Dynamics of the NEW Software Industry: What it Means for Software Companies Ken Wasch, President, SIIA

Current State of the Industry

History of Software 1950 –Mainframe: IBM Mid-1960s –Mini-computers: DEC, Wang 1981 –PCs: IBM, Microsoft, Compaq 1995 –The Web

Basic Parameters Packaged software ERP Simple EULA Perpetual License Volume Discounts Electronic Licenses ESD Service/Maintenance This is all about to change….

What is a Software Company?

The Network exacerbated the complexity of the Industry. The direction of the Industry has shifted.

Evolution clientserver Network computing Network computer Web server Database serverApplication server

A NEW Software Industry is Being Born!

New Models New Ways of Thinking New Companies New Practices New Form Factors New License Terms……

New Models…

New Models ASP: The Predecessor

New Models Software as a Service: The Movement

Software as a Service Not an ASP Clients access services (software) through a web browser form any web- enabled appliance. How do you license this kind of service?

New Models Web Services: The Future

New Models Open Source: The Disruptor

Open-source to patents There is a growing tension between the rise of open-source and the expanding options for propriety control –Open-source’s GPL is at one end of the IP spectrum –Patents are the other end

Why? Piracy Issues Change the Relationship with the Customer Customer Demand New Form Factors (Mobile, Handheld) New Revenue Opportunities What does it mean for Licenses?

The industry has entered a period in which it is no longer the technology itself that is central, but the value it provides to businesses and consumers. Irving Wladawsky-Berger, IBM

The Future of Licensing The License Disappears Shift to Maintenance and Service Non-Perpetual Licenses Costs Monthly Subscriptions Usage Based One-Time Licenses

The Future of Licensing Free + Services License + Extra Service Modularization Per User Selling across Devices

Current Examples Salesforce.com: User-Based Sun Microsystems: Project Orion IBM: Utility Computing Microsoft: LiveMeeting Microsoft: Software Assurance Intuit: Product Activation

Things to Consider…. What works for you? Work with the flexibility How does it open new avenues? What is the TCO? How can you shift resources? How can you be more dynamic?

Pervasive Computing When every appliance can be web- enabled, communicating seamlessly with other devices, the shape of the industry changes drastically,

Ken Wasch President Software & Information Industry Association