Innovative semiconductors, data storage devices, computer architecture, software, and data communication devices since 1950 have transform information technology throughout three distinct eras Mainframe, PC, and Internet. Software is classified as either a business service or publishing, and is a subset of the larger $1 Trillion computer industry. Software by generating $200 billion every year is considered to be the one of the most innovative and fastest growing sectors of the global economy. About half of those sales come from software applications, with the remainder split between development tools and infrastructure software.
Estimated market size:
The size of the worldwide software industry in 2010 was US$ 303.8 billion, an increase of 6.5% compared to 2009. Americas account for 42.6% of the global software market's value. According to forecasts in 2013, the global software market will have a value of US$ 457 billion, an increase of 50.5% since 2010
Competing forces:
Digital Convergence is playing a major role in shaping future hardware, the very foundation upon which software is built
CE (Consumer Electronics) plays a role in shaping business, the biggest impact will be mobilization - the convergence of PC's and Telecom to form new mobile computing/ communication platforms, i.e. uPC's (UltraPortables) and SmartPhones.
Commoditization
Virtual delivery
Major competitors:
In terms of technology leadership, IBM is a long lived leader. However, Microsoft is a dominant player as PC operating system supplier. Other companies which hold significant mindshare are SUN Microsystems, the developer of the Java platform (purchased by Oracle in 2009), Red Hat, for its open source momentum, and Google for its Google Docs. However in terms of revenues generated from software sales, the software industry is clearly dominated by Microsoft (Aghion, 1994, 1185).
Growth Opportunities abound throughout the software industry due largely in part to Digital Convergence. The next generation internet, Internet 2.0 will be home to many innovative opportunities. With the web acting as a unifying force; universal, mobilized applications hold immense promise.
Short term objectives:
The following key targets will be achieved by Marks Inc over the next 3-4 years:
Achieve sales of $10 million by 2012
Report annualized profits of $1 million in 2012
Secure 20% of the software market segment by 2012
Become largest supplier of The Marks Systems in US within 2 years
Undertake an IPO by 2012
Employ 400 people including 60% technically qualified by 2015
Have sales offices or agents in 5 key markets before 2012
Long term objectives
Longer term business objectives of Marks Inc are summarized as:
To grow and expand the business aggressively and provide outstanding returns to our shareholders.
To become the leading, innovative systems company in Packaged software market segment with 5 distinct offerings in first year and 3 additional every year till five years of launch, as shown in the table below:
Years
Offerings
Year 1
application development software; application server middleware; integration and process automation middleware; data access, analysis, and delivery; structured data management;