n n n n n
 

SOFTWARE

sector Overview:

Apart from the few areas that are truly dominated by the likes of Oracle, SAP and Microsoft, the software sector is still very fragmented. As such, after years of nascent growth, it is seen by many as being ripe for consolidation and there are a number of players which are keen to assist. The intent behind these acquisition sprees is sound enough - cut central overheads and cross-sell products to a wider customer base. The reality of course is that integrating acquisitions is always a tough job: many companies underestimate just how difficult it is and find that combining several different software packages onto one platform is a time-consuming and complex operation. However as Oracle’s purchase of PeopleSoft and Google’s varied successes have all set the ball rolling, so others are now keen to follow.

However, for now, in this highly competitive industry, organic growth from new products is still the primary driver of performance and company valuation. Essentially separating into two distinct markets, business and consumer, there are a number of companies that currently provide software products across the spectrum. In the business sphere, the main players are firms like Oracle and SAP that focus on enterprise management, data warehousing, CRM, HR and supply-chain management. In the consumer arena, there are multiple companies ranging from the likes of EA, which is strong in gaming, through to Real Networks in media players and Dorling Kindersley in education. Amongst those working across the sector, Symantec, Adobe and Corel all have their niche and Microsoft is naturally involved in many areas.

ONES WE ARE WATCHING

 

Salesforce.com
Salesforce.com isn’t a conventional software company: its model isn't about selling licenses but is based on a per user, per month charge. Focused on delivering on-demand business applications related to sales and customer relationship management, through supplying business computing as a set of simple services, the ability to disrupt the sector is clear. As companies grow by using software purchased over the grid rather than being specifically owned, they and their employees are able to control the processing of information directly, without the need for large IT support teams.

Adobe
Adobe, the pervasive digital imaging and document company, has been around for over 25 years now and has been busy building on its Photoshop / Acrobat heritage. Adobe Flash was recognised as a pivotal application in bringing animation and motion to the first decade of websites and has now developed to become the way in which video for the web has become easy to create and consume. More recently the release of Adobe AIR is spurring the next wave of innovation, bridging the dynamic capabilities of the web with the computing power of
the desktop.

 

 

 

Adidas
Apple
Aviva
BASF
BMW
Boeing

Cannon
Google
Handelsbanken
H&M
Infosys
LEGO
Lilly
Medtronic
Microsoft
> Company Profile
> Innovation Scorecard
> Sector Overview
> Innovation Drivers
Nokia
NTT DoCoMo
PepsiCo
Reckitt Benckiser
Samsung
Shell
Starwood
Tesco
UPS
Virgin Atlantic