Information Technology

Another massive industry segment: too big to cover in one summary page. “Software” includes application software, system software, middleware and tools, and electronic games.

Revenue models in the industry encompass products and licenses, an associated services model, and a paid web-based model. The global software industry is shifting from packaged products to services as evidenced by the increase in “cloud computing” and “software-as-a- service (SaaS)” within the IT market.

The shift from license to services is dramatic and disruptive to the industry’s internal organization, customer relationships, and management.

“We didn’t realize all the steps that were involved in selling a business. Thank you for managing the process through to a successful transaction.”
– Founder, IT Staffing Firm

Gartner estimates a global IT spending of $4.5 trillion in 2020, which includes $670 billion for enterprise software, $820 billion on devices, $207 billion on data center systems, and the rest divided among IT services and telecom services. Challenges faced by the software industry include piracy/intellectual property protection and pricing the new services-based model. Challenges faced by IT managers everywhere include system vulnerability, storage, energy management, etc.

Geo Strategy Partners serves IT/software clients with customized research and analysis, strategic consulting, and M&A support.