Bhoo wears the thinking cap!

As if that is possible!

Consolidation in ISV business, It’s truly happening!

Posted by bhoo on October 9, 2006

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.


One Response to “Consolidation in ISV business, It’s truly happening!”

  1. Abi said

    Awesome, man

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