The Way to Survive in the Software Industry

Author: Michael A. Cusumano
Publisher:
Publish Date: 2005-05-01
Features: In recent years, the software industry has generated a total output value of $600 billion worldwide. This industry is highly competitive, but the key factor determining the success or failure of companies in the software industry is not technology but business. This book discusses seven fundamental questions in the software industry and categorizes the business models of software companies into three types: product-based, service-based, and hybrid. Each model has its own advantages and is suitable for different companies, their respective stages of development, and the varying economic environments they face. Based on in-depth research and firsthand materials, the author proposes eight fundamental factors for evaluating the prospects of software companies and analyzes case studies of ten newly emerging software enterprises. Additionally, the author reveals some strategies adopted by software giants such as IBM, Microsoft, and Netscape to survive and thrive in both adverse and favorable conditions. Managers, programmers, entrepreneurs, and others in the software industry will find inspiration in this book and guidance for their work. This book explains how to establish, develop, and manage a successful company in the world's most competitive industry—software. Currently, the global software industry generates a total output value of $600 billion, but success in this industry often hinges not on technology but on business. This conclusion is drawn from Michael A. Cusumano's highly readable and enlightening new book, which is based on nearly two decades of research and consulting on software companies worldwide. In the book, Cusumano discusses seven key issues in the software industry, which are related to the three fundamental business models adopted by software companies: becoming a product company, a service company, or a hybrid solution company. The author describes the characteristics of each model, evaluates their strengths and weaknesses, and explains how each model adapts to different stages of business development and to both prosperous and recessionary economic periods. Readers can also benefit greatly from Cusumano's discussion of software development issues, which covers architecture, development teams, project management, and product testing. The most important part of the book is Cusumano's eight fundamental principles for evaluating potential software winners, as well as case studies of ten newly emerging software enterprises that have achieved varying degrees of success.