2014-03-06 01:21:02 - Software - Industry Analysis - a new market research report on companiesandmarkets.com
Our Computer Software & Services Industry includes a broad range of companies, offering a wide range of products and services, spanning personal computer operating systems and office productivity suites to network security applications to payroll processing services to information technology consulting and outsourcing services. The group´s end markets are also wide ranging, with nearly every facet of the global economy being targeted. Broadly speaking, this industry can be broken into two, though somewhat overlapping, segments-one in which the primary product is a suite of software and services offered via a perpetual license agreement (the customer purchases the software), and one in which a combination of software and services is offered as a tailored solution to a vertical market´s recurring
need (customers usually contract for services). A classic example of the first segment would be a software developer selling database management systems; a typical instance of the second would be a company selling transaction-processing solutions to financial institutions. As a general rule, sales and marketing expenses, which are often scaled back when business is difficult, are a large part of the industry´s cost structure. Expenditures on research and development vary across the industry, though they figure prominently in a software developer´s cost structure. The rapid increases in data processing speeds have provided the foundation on which suites of complex software applications and interfaces could be developed and deployed, bringing the potential for greater efficiency and productivity to nearly every kind of business.
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