ICE World (Business Std) has an interview with KB Chandrasekhar of Jamcracker:
There are three key trends in the market. First, software as service, price as a licence fee and a capital expenditure, is slowly turning into more of a revenue expenditure. Second, software was originally something monolithic.
In a mainframe, you had hardware and software together. Then slowly it got disintegrated into stacks and applications. But the stacks were also developed by the same companies like IBM who said they were so valuable.
Slowly you saw the emergence of the open source movement which said, if it is such a standardised component, why are people paying for it? Why don’t people make use of the open source that makes it happen?
That is one of the reasons which is disrupting the whole industry today — the migration towards Linux and associated components like LAMP (Linux, Apache, MySQL and Python).
Third, the monolithic structure disintegrating into stacks has also triggered the emergence of web services which enables application integration painlessly. How is this new technology going to be embraced and extended? One needs a deep product architecture knowledge and being able to leverage that into not just engineering services but providing engineering lifecycle services.
That is, the customer begins to treat you as part of cost. Customers are increasingly looking at not just the technology edge, but somebody who can reliably, effectively and in a cost effective manner make your lifecycle his lifecycle and help him with the changing business model, not just the technology model.
Software is emerging as a service, on demand, as a subscription model. When I get value I pay; I pay only when I make money.
The eighties were driven by the core technology innovations of the Microsofts. The nineties were driven by netcentric innovations at the consumer level.
The early 21st century is driven by the delivery of services in a coordinated fashion coming from coordinated sources.