Software 2007 – state of the software industry!

It was a great experience – to be there in software 2007 (sandhill). Here are some of the observations – in my perspective:

– Everyone (well, almost!) there (including my humble self) seems to think that the future of the software industry is going to be 100% defined and controlled by themselves. Microsoft was no exception, Salesforce and SAP claiming the same.

Motorola thinks all PCs will be replaced by handhelds.

Microsoft thinks they will continue to wipe all other players in whatever space – hardware, software – everything.

SAP – thinks they will create the “cover-all” of enterprise applications.  Enterprises – small and big – will make coffee using SAP (which incidentally is going to be available on-tap (on-demand) according to Hasso).

We Aspire Systems did not speak there. But, what the heck! Let me make the claim on which we have 100% trust and confidence on. Our claim to rule the software world? Here it goes…

Aspire Systems will redefine the way software is built for the enterprises and consumers alike. Product Engineering and best practices there is the thread that is going to get any of these guys to get anywhere close to where they want to get! And, Aspire will create, define, proliferate and possess the best of the best of Software Product Engineering practices. So, we will rule the roost! Hold your breadth and watch!

Consolidation in ISV business, It’s truly happening!

There is so much talk in the market about the consolidation of enterprise software companies.  While high profile deals are happening, in large numbers, I was still not sure if there is truth in the story on an industry-wide basis.

My recent quick calculations looking at software industry profile published by SIIA, comparing it against their data published in 2004 gave a quick clarification that consolidation is, truly happening.

Yes.  Consolidation is happening at all levels – be it by M&A or by natural evolution – survival of the fittest.

Look at the statistics:

SIIA reported 23,311 companies in the USA in their report titled Software Industry Profile June, 2004.  In their recent report Zapdata Industry Profile, January 2006, the number of companies have come down to 18,939.

More interesting is the fact that ISV companies above 100 employees in size – 462 of them in 2004, reduced to 409 of them in 2006.  The 462 companies above 100 employees in size generated 85.5 Bn in revenues in 2004, and now, the reduced number of companies, 409 of them produce 96.5 Bn in revenues.