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Software 2007: Innovation in Software
The Software 2007 conference highlighted innovations in the software industry. McKinsey & Company and Sand Hill Group made their report on software innovation available at the conference. 475 senior IT and business executives were polled as part of their survey.
When asked what the most important software issue in their company, software innovation topped the list:
- 33% Software Industry Innovation
- 21% Software as a Service
- 18% Web Services and SOA
- 11% Open Source
- 9% Offshoring and Globalization
- 8% Software Industry Consolidation
The costs of software are rising. The survey found that software takes up 31% of IT budgets and is likely to increase to 36% in two years. But the costs aren’t what these executives are concerned about. Only 14% said that they worry about costs.
Maybe that’s because they are looking to renegotiate their traditional licensing contracts for alternatives. Currently 60% of software is being paid for via traditional licensing and 40% using some other model. Subscription on-demand is an alternative pricing model most frequently cited as one that will be considered as a replacement to their current contracts.
New pricing models have translated into lower up-front costs and this is turning IT organizations inside out. Today 69% of IT operations are centrally controlled with the rest being controlled by business units. 40% see less central control on the horizon over the next two years.
