Blackfriars' Marketing

Saturday, May 28, 2005

Is the enterprise software licensing business dying?

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IT Manager has an article online asserting that the enterprise software business appears to be in rapid decline. I find this of interest because one of my research reports at Forrester in fact predicted that we would see about a 20% decline in software licensing revenues by 2004/5. Open source is one reason, but it is only a piece of the puzzle. Part of it is that so many of these pieces of software don't deliver on what they promise and come with no warrantee of any kind (Blackfriars has written about that here). Something has got to change there if software companies want that trend to reverse.