Development Tools, Operating Systems & Utilities Software

Development Tools, Operating Systems & Utilities Software

Brief Excerpt from Industry Overview Chapter:

Companies in this industry design and publish development tools, operating systems, and utilities software. Major companies include Apple, Google, Hewlett-Packard Enterprise, IBM, Intel, Microsoft, Red Hat, and Symantec (all based in the US), as well as Avast Software (Czech Republic) and Trend Micro (Japan).

COMPETITIVE LANDSCAPE

Demand is driven by sales of computing devices, including desktop and notebook PCs, tablets, and smart phones, which are tied to personal income levels and business profits. The profitability of individual companies depends on technical expertise and effective marketing. Large companies have advantages in development, marketing, and distribution resources. Small software companies compete by focusing on niche applications or emerging technologies. The US software industry is concentrated: the 50 largest companies generate about 70% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include published system software and published applications software, both accounting for about 40%, each. Other revenue sources also include operating software publishing. Operating systems and utilities are also known as systems software, a term that differentiates them from application software such as productivity programs and games.