Gartner: Software Costs Will Plummet

Research firm Gartner predicts that in the next 10 years, changes in relationships with software firms will help businesses cut down on investment costs for software. Gartner's latest research report confirms that for enterprise computer hardware, it can talk to manufacturers to get the most reasonable price. But in the field of software that opportunity almost does not exist. However, this situation is showing signs of positive change. Gartner Vice President William Snyder said the consolidation of a series of factors that will make changes soon happen in the near future. This will create a real "revolution" in the relationship between customers and software firms. ' Customers will quickly see the advantage starting to lean toward them. At the same time, alternative software products also began to appear in the market. As an example,, the outsourcing process handles business processes, provides software such as online services on the Internet, open source products or other third-party maintenance service providers. That will somehow affect the revenue of software firms '. Snyder forecasts that by 2011 all business software will be offered as an online service. In the international arena, the rise of Chinese software firms plus strong expansion of developing markets like Brazil, China and India will also contribute to drastically reducing software investment costs., especially server costs, operating systems, development tools and database technology. ' We would recommend IT business organizations use alternative outsourcing or open source products to have the advantage of negotiating with software vendors. The future of businesses should also consider hiring other third-party support service providers to partly reduce additional software maintenance costs . ' Hoang Dung