SOFTWARE INDUSTRY ANALYSIS

How do you do an industry analysis?

Software industry analysis:
Software industry analysis is the Comprehensive financial analysis and evaluation of the global
software market. It involves analyzing quantitative statistical data such as the size of a particular
market and the market share for specific software companies.

Industry Analysis

1. Step 1: Give a brief overview of the industry. ...

2. Step 2: Review trends and growth patterns that have existed within the industry.

3. Step 3: Identify factors that influence the industry. ...

4. Step 4: Using data gathered through research, the industry forecast anticipated growth.

Therefore, software industry analysis is a very important process for corporations that are
involved in the global software market. There are several areas that must be covered in
software industry analysis, including analysis of
 software industry trends
 market
 size
1. Computer software applications;
Such as accounting and spreadsheet programs, are heavily used in this area of works.
For example:
A financial analyst might gather statistical data and implement the data in an existing
spreadsheet, from which graphical representations of the data can be derived. sales statistics
2. Industry trend analysis:

Industry trend analysis is an

Important component of software industry analysis because it enables an analyst to identify
Patterns of consumer behavior, from which future predictions can be made. Typically, this
Process involves reviewing quantitative historical data and using it to ascertain whether a
Business, product, or service is likely to be profitable in the future.

For example:
A software industry analyst might review historical trends within the music software sector prior
to a product launch.

3. Trend analytics:
Trend analysts typically use graphs and charts to aid them in the process.

5. Market size analysis:

Market size analysis involves reviewing quantitative data about a market size. In software
industry analysis, market size analysis typically involves identifying the size of submarkets in
the software industry.
For example:
Word processing software and music software are two separate submarkets and, therefore,
warrant separate market analysis. If a music software company is launching a new product, it
would not make sense to analyze the market size for the word processing software sector.

Software Sectors

The software industry can be separated into four main categories: programming services,
system services, open source and SaaS. The following describes the categories of business
software used in the industry.

Programming Services - this sector has historically been the largest sector and includes
names such as Microsoft Corporation (NASDAQ: MSFT), Automatic Data Processing, Inc.
(NASDAQ: ADP), Oracle Corporation (NYSE: ORCL) and SDC Technologies, Inc. These
companies often pioneered solutions to needs by businesses to analyze data, store and
organize data, or provide programs to run machinery.

System Services – although programming was the largest software sector early in computer
history, system services grew rapidly through the 1960s and 1970s, and then exploded in the
1980s with the rise of personal computers (PCs) and the need for an encompassing operating
system such as Microsoft’s original disk operating system (DOS) that was launched in 1981.

Open Source – programming or software engineering has become a huge in-demand

profession with the growth of the Internet, cloud systems and businesses willing to venture
more willingly into open-source environments such as the Linux operating system. Open
source refers to a code base that was created and is free to acquire. However, most
businesses require changes to be made to the code bases to suit their needs. Another open-
source code base android operating system.

Software as a service – with the rise of cloud computing and the movement of most
businesses large and small to the cloud, SaaS has become more popular than system software
for businesses' specific needs. This software is kept on the creators' servers and clients access
the software through the Internet, also referred to as the cloud. All upgrades, patches and
issues are handled on the creator side with a subscription-based model for the client.
The SaaS sector is forecast for continuous growth over the next decade, representing almost
30% by 2018. By the end of 2016, it is forecast that over 80% of all businesses will incorporate
at least one component of cloud computing within their information technology (IT)
infrastructures, such as infrastructure as a service (IaaS), platform as a service (PaaS) or
SaaS programs.