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IDCís Top Ten Predictions for Software Business Strategies: Vendors Search for the Path Toward Sustainable Growth


FRAMINGHAM, Mass., April 17, 2006 Ė According to IDC, the major trends in software business strategies in the near- and long-term will focus on the search for a path toward sustained, profitable growth. The study presents the top ten issues that IDC believes will have the most profound impact on software industry models, and reveals the ways in which vendors will expand their business direction through strategic investments, partnerships, and alliances.

ďThe software industry is in the midst of transformation,Ē said Stephen Graham, group vice president, Global Software Business Strategies. ďAlthough the industry is growing, the path to sustained, profitable growth isnít quite clear. From IDCís perspective, this is more than intense competition and consolidation. Many vendors have opened the door to potential re-invention, which may be a prerequisite for survival as the industry landscape shifts.Ē

IDCís top ten predictions for software business strategies include:

1. Partners organize themselves into ímini ecosystems,í and these become vendorsí preferred method to target customer solution markets
2. ISV program reformation causes realization of ISV partnersí critical role leading to initiatives seeking major redesign, investment and alignment goals
3. Subscription options expand as vendors strive to increase revenue predictability
4. Software vendors ratchet up channel investments to extend enhanced relationship to a broader base of lower-tier partners
5. Software licensing technology market is poised for growth, but only if vendors and customers can find a process middle-ground
6. Endorsement alliances embark upon a path to extinction while the true measure of alliance success moves closer to the customer
7. The market for intellectual property formally emerges
8. Software vendors commit to the software broker model
9. Large ISVís launch on-demand versions of their products
10. Mainstream vendors reveal business plans fueled by growth

The study, Top 10 Predictions for Software Business Strategies (IDC #201039), investigates the top ten predictions that will have the most profound impact on software industry business models. The predictions are based on issues that IDCís analysts believe will be visible to the market this year and will have significant structural impact over the long term.

To purchase this document, call IDCís Sales hotline at 508-988-7988 or email


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