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The word "software" was coined as a prank as early as 1953, but
did not appear in print until the1960s .[1] Before this time,
computers were programmed either by customers, or the fewcommercial
computer vendors of the time, such as UNIVAC and IBM. The first
company foundedto provide software products and services was
Computer Usage Company in 1955 .[2]
The software industry expanded in the early 1960s, almost
immediately after computers werefirst sold in mass-produced
quantities. Universities, government, and business customerscreated
a demand for software. Many of these programs were written in-house
by full-time staffprogrammers. Some were distributed freely between
users of a particular machine for no charge.Others were done on a
commercial basis, and other firms such as Computer
SciencesCorporation (founded in 1959) started to grow. The computer
/hardware makers startedbundling operating systems , systems
software and programming environments with theirmachines.
When Digital Equipment Corporation (DEC) brought a relatively
low-priced microcomputer tomarket, it brought computing within the
reach of many more companies and universitiesworldwide, and it
spawned great innovation in terms of new, powerful programming
languagesand methodologies. New software was built for
microcomputers, so other manufacturersincluding IBM, followed DEC's
example quickly, resulting in the IBM AS/400 amongst others.
The industry expanded greatly with the rise of the personal
computer ("PC") in the mid-1970s,which brought desktop computing to
the office worker for the first time. In the following years,
italso created a growing market for games, applications, and
utilities. DOS , Microsoft 's
first operating system product, was the dominant operating
system at the time.In the early years of the 21st century, another
successful business model has arisen for hostedsoftware, called
software-as-a-service , or SaaS; this was at least the third time
[citation needed ] thismodel had been attempted. From the point of
view of producers of some proprietary software , SaaS reduces the
concerns about unauthorized copying , since it can only be accessed
throughthe Web, and by definition no client software is loaded onto
the end user's PC.
Size of the industry [edit ]
According to industry analyst Gartner , the size of the
worldwide software industry in 2013 wasUS$407.3 billion, an
increase of 4.8% over 2012. As in past years, the largest four
softwarevendors were Microsoft, Oracle Corporation , IBM, and SAP
respectively. [3]
Mergers and acquisitions [edit ] The software industry has been
subject to a high degree of consolidation over the past couple
ofdecades. From 1988 to 2010, 41,136 [citation needed ] mergers and
acquisitions have been announcedwith a total known value of
US$1,451 billion [4] ($1.45 trillion). The highest number and value
ofdeals was set in 2000 during the high times of the dot-com bubble
with 6,757 transactions valued
at $447 billion. In 2010, 1,628 deals were announced valued at
$49 billion.
http://en.wikipedia.org/wiki/Software_industry#cite_note-1http://en.wikipedia.org/wiki/Software_industry#cite_note-1http://en.wikipedia.org/wiki/Software_industry#cite_note-1http://en.wikipedia.org/wiki/UNIVAChttp://en.wikipedia.org/wiki/UNIVAChttp://en.wikipedia.org/wiki/UNIVAChttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/Computer_Usage_Companyhttp://en.wikipedia.org/wiki/Computer_Usage_Companyhttp://en.wikipedia.org/wiki/Computer_Usage_Companyhttp://en.wikipedia.org/wiki/Software_industry#cite_note-2http://en.wikipedia.org/wiki/Software_industry#cite_note-2http://en.wikipedia.org/wiki/Software_industry#cite_note-2http://en.wikipedia.org/wiki/Computer_Sciences_Corporationhttp://en.wikipedia.org/wiki/Computer_Sciences_Corporationhttp://en.wikipedia.org/wiki/Computer_Sciences_Corporationhttp://en.wikipedia.org/wiki/Computer_Sciences_Corporationhttp://en.wikipedia.org/wiki/Computer_hardwarehttp://en.wikipedia.org/wiki/Computer_hardwarehttp://en.wikipedia.org/wiki/Computer_hardwarehttp://en.wikipedia.org/wiki/Operating_systemshttp://en.wikipedia.org/wiki/Operating_systemshttp://en.wikipedia.org/wiki/Operating_systemshttp://en.wikipedia.org/wiki/Systems_softwarehttp://en.wikipedia.org/wiki/Systems_softwarehttp://en.wikipedia.org/wiki/Systems_softwarehttp://en.wikipedia.org/wiki/Digital_Equipment_Corporationhttp://en.wikipedia.org/wiki/Digital_Equipment_Corporationhttp://en.wikipedia.org/wiki/Digital_Equipment_Corporationhttp://en.wikipedia.org/wiki/Microcomputerhttp://en.wikipedia.org/wiki/Microcomputerhttp://en.wikipedia.org/wiki/Microcomputerhttp://en.wikipedia.org/wiki/IBM_AS/400http://en.wikipedia.org/wiki/IBM_AS/400http://en.wikipedia.org/wiki/IBM_AS/400http://en.wikipedia.org/wiki/Personal_computerhttp://en.wikipedia.org/wiki/Personal_computerhttp://en.wikipedia.org/wiki/Personal_computerhttp://en.wikipedia.org/wiki/DOShttp://en.wikipedia.org/wiki/DOShttp://en.wikipedia.org/wiki/DOShttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Operating_systemhttp://en.wikipedia.org/wiki/Operating_systemhttp://en.wikipedia.org/wiki/Operating_systemhttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Software-as-a-servicehttp://en.wikipedia.org/wiki/Software-as-a-servicehttp://en.wikipedia.org/wiki/Software-as-a-servicehttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Proprietary_softwarehttp://en.wikipedia.org/wiki/Proprietary_softwarehttp://en.wikipedia.org/wiki/Proprietary_softwarehttp://en.wikipedia.org/wiki/Software_copyrighthttp://en.wikipedia.org/wiki/Software_copyrighthttp://en.wikipedia.org/wiki/Software_copyrighthttp://en.wikipedia.org/wiki/Client_softwarehttp://en.wikipedia.org/wiki/Client_softwarehttp://en.wikipedia.org/wiki/Client_softwarehttp://en.wikipedia.org/w/index.php?title=Software_industry&action=edit§ion=2http://en.wikipedia.org/w/index.php?title=Software_industry&action=edit§ion=2http://en.wikipedia.org/w/index.php?title=Software_industry&action=edit§ion=2http://en.wikipedia.org/wiki/Gartnerhttp://en.wikipedia.org/wiki/Gartnerhttp://en.wikipedia.org/wiki/Gartnerhttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Oracle_Corporationhttp://en.wikipedia.org/wiki/Oracle_Corporationhttp://en.wikipedia.org/wiki/Oracle_Corporationhttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/SAPhttp://en.wikipedia.org/wiki/SAPhttp://en.wikipedia.org/wiki/SAPhttp://en.wikipedia.org/wiki/Software_industry#cite_note-3http://en.wikipedia.org/wiki/Software_industry#cite_note-3http://en.wikipedia.org/wiki/Software_industry#cite_note-3http://en.wikipedia.org/w/index.php?title=Software_industry&action=edit§ion=3http://en.wikipedia.org/w/index.php?title=Software_industry&action=edit§ion=3http://en.wikipedia.org/w/index.php?title=Software_industry&action=edit§ion=3http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Software_industry#cite_note-4http://en.wikipedia.org/wiki/Software_industry#cite_note-4http://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/Software_industry#cite_note-4http://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/w/index.php?title=Software_industry&action=edit§ion=3http://en.wikipedia.org/wiki/Software_industry#cite_note-3http://en.wikipedia.org/wiki/SAPhttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/Oracle_Corporationhttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Gartnerhttp://en.wikipedia.org/w/index.php?title=Software_industry&action=edit§ion=2http://en.wikipedia.org/wiki/Client_softwarehttp://en.wikipedia.org/wiki/Software_copyrighthttp://en.wikipedia.org/wiki/Proprietary_softwarehttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Software-as-a-servicehttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Operating_systemhttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/DOShttp://en.wikipedia.org/wiki/Personal_computerhttp://en.wikipedia.org/wiki/IBM_AS/400http://en.wikipedia.org/wiki/Microcomputerhttp://en.wikipedia.org/wiki/Digital_Equipment_Corporationhttp://en.wikipedia.org/wiki/Systems_softwarehttp://en.wikipedia.org/wiki/Operating_systemshttp://en.wikipedia.org/wiki/Computer_hardwarehttp://en.wikipedia.org/wiki/Computer_Sciences_Corporationhttp://en.wikipedia.org/wiki/Computer_Sciences_Corporationhttp://en.wikipedia.org/wiki/Software_industry#cite_note-2http://en.wikipedia.org/wiki/Computer_Usage_Companyhttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/UNIVAChttp://en.wikipedia.org/wiki/Software_industry#cite_note-1
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Business models within the software industry [edit ] Business
models of software companies have been widely discussed .[5][6]
Network effectsin software ecosystems , networks of companies, and
their customers are an important element in
the strategy of software companies .[7]
See also [edit ]
Software
Software development
Software publisher
Software engineering
World's largest software companies
References [edit ] 1. Jump up^ Paul Niquette (1995). "Softword:
Provenance for the Word 'Software'" . adapted
fromSophisticated: The Magazine ISBN 1-58922-233-4 2. Jump up^
Elmer C. Kubie (Summer 1994). "Recollections of the first
software
company". Annals of the History of Computing (IEEE Computer
Society ) 16 (2): 65 71 .doi:10.1109/85.279238 .
3. Jump up^ "Gartner Says Worldwide Software Market Grew 4.8
Percent in 2013" . 4. Jump up^ "Statistics on Mergers &
Acquisitions (M&A) - M&A Courses | Company Valuation
Courses | Mergers & Acquisitions Courses" .
Imaa-institute.org. Retrieved 2013-02-04.5. Jump up^ Karl M. Popp
and Ralf Meyer (2010). Profit from Software Ecosystems:
Business
Models, Ecosystems and Partnerships in the Software Industry .
Norderstedt, Germany:BOD. ISBN 3-8391-6983-6 .
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i/Software_publisherhttp://en.wikipedia.org/wiki/Software_developmenthttp://en.wikipedia.org/wiki/Softwarehttp://en.wikipedia.org/w/index.php?title=Software_industry&action=edit§ion=5http://en.wikipedia.org/wiki/Software_industry#cite_note-7http://en.wikipedia.org/wiki/Software_ecosystemhttp://en.wikipedia.org/wiki/Software_industry#cite_note-Karl2010-5http://en.wikipedia.org/wiki/Software_industry#cite_note-Karl2010-5http://en.wikipedia.org/w/index.php?title=Software_industry&action=edit§ion=4
