Table of Contents
Executive Summary
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- The market
- Impact of COVID-19 on software
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- Figure 1: Expected impact of COVID-19 on software, short, medium and long term, 19 June 2020
- Strong growth
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- Figure 2: The market for software, 2015-19
- Packaged software is increasingly capable
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- Figure 3: Segmentation of the software market by packaged and proprietary products, 2015-19
- Varied users
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- Figure 4: Software market segmentation, by end-use sector, 2019
- Short-term software changes
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- Figure 5: Software winners and losers during COVID-19 work-from-home instruction, March-June 2020
- The prospects
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- Figure 6: Forecast software market compared with expectations prior to COVID-19, 2019-24
- Companies and brands
- Many different international approaches
- M&A a key feature
- What we think
The Impact of COVID-19 on Software
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- Short, medium and long-term impact on the industry
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- Figure 7: Expected impact of COVID-19 on software, short, medium and long term, 19 June 2020
- Short term
- Medium term
- Long term
- Opportunities and threats
- Impact on the software market
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- Figure 8: Forecasted value of the software market compared with expectations prior to COVID-19, 2019-24
- Figure 9: Software winners and losers during COVID-19 work-from-home instruction, March-June 2020
- How the crisis will affect software’s key client segments
- Information and communications
- Wholesale/retail
- Manufacturing
- Professional
- Finance/insurance
- Other
- COVID-19: UK context
Issues and Insights
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- Remote working changes software demand
- The facts
- The implications
- Will technological unemployment be furthered by COVID-19?
- The facts
- The implications
The Market – What You Need to Know
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- Growth slowed in 2019
- Packaged software capabilities are increasing
- The diverse end-use market
- COVID-19 creating new growth areas
Market Size
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- Slower growth in 2019
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- Figure 10: The market for software, 2015-19
Market Segmentation
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- Packaged and proprietary
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- Figure 11: Segmentation of the software market by packaged and proprietary products, 2015-19
- Enterprise software segmentation
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- Figure 12: Segmentation of enterprise application software, 2019
Sales by industry sector
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- Overview
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- Figure 13: Software market segmentation, by end-use sector, 2019
- Agriculture/forestry
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- Figure 14: Trends in software sales to the agricultural sector, 2015-19
- Mining/quarrying
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- Figure 15: Trends in software sales to the mining sector, 2015-19
- Manufacturing
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- Figure 16: Trends in software sales to the manufacturing sector, 2015-19
- Electricity and gas
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- Figure 17: Trends in software sales to the electricity and gas sector, 2015-19
- Water
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- Figure 18: Trends in software sales to the water sector, 2015-19
- Construction
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- Figure 19: Trends in software sales to the construction sector, 2015-19
- Retail/wholesale
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- Figure 20: Trends in software sales to the retail and wholesale sector, 2015-19
- Transport/storage
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- Figure 21: Trends in software sales to the transport and storage sector, 2015-19
- Accommodation/food service
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- Figure 22: Trends in software sales to the accommodation and food service sector, 2015-19
- Information, communications/broadcasting and publishing
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- Figure 23: Trends in software sales to the information, communications and publishing sector, 2015-19
- Insurance, finance and banking
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- Figure 24: Trends in software sales to the insurance, finance and banking sector, 2015-19
- Real estate
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- Figure 25: Trends in software sales to the real estate sector, 2015-19
- Professions
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- Figure 26: Trends in software sales to the profession sector, 2015-19
- Administration
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- Figure 27: Trends in software sales to the administration sector, 2015-19
- Public administration
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- Figure 28: Trends in software sales to the public administration sector, 2015-19
- Education
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- Figure 29: Trends in software sales to the education sector, 2015-19
- Health
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- Figure 30: Trends in software sales to the health sector, 2015-19
- Arts and entertainment
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- Figure 31: Trends in software sales to the arts and entertainment sector, 2015-19
- Other services
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- Figure 32: Trends in software sales to the other services sector, 2015-19
- Residential
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- Figure 33: Trends in software sales to the residential sector, 2015-19
Market Forecast
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- COVID-19 creating winners and losers
- Short-term difficulties in end-use markets
- The short-term software winners and losers
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- Figure 34: Software winners and losers during COVID-19 work-from-home instruction, March-June 2020
- The prospects
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- Figure 35: Forecast software market compared with expectations prior to COVID-19, 2019-24
The Impact of the Economy
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- UK GDP
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- Figure 36: UK GDP growth rate, 2012-19
- COVID-19 causing record fall in economy
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- Figure 37: Proportion of employees furloughed, by sector, 6-19 April 2020
- Figure 38: Monthly index of GDP, January 1997-April 2020
- Business investment and confidence suffering before Covid-19
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- Figure 39: UK business investment, £ million, Q1 2015 – Q4 2019
- Figure 40: UK ICT investment, £ million, Q1 2015 – Q4 2019
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- Figure 41: ICAEW UK National Business ConfidenceTM index, Q1 2014 – Q1 2020
Market Trends
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- Immersive technologies
- AI and ML
- Low code/no code development
- Progressive web apps
- Blockchain
Market Drivers
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- Introduction
- The internet revolutionised software
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- Figure 42: Development of worldwide internet usage, by region, 2000-20
- Figure 43: Internet penetration of businesses, by size of business, 2018
- The cloud
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- Figure 44: The cloud computing market, 2015-19
- Computer security
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- Figure 45: UK market for computer security products and services, 2015-19
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- Figure 46: Average investment in cyber security, by sector, 2019
- Figure 47: Segmentation of the computer security market, by solution, 2019
- Internet of things
- 5G
- Edge computing
Companies and Brands – What You Need to Know
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- Feeding an international industry
- AI and ML at the top of shopping lists
- Software is a service, not a product now
Industry Structure
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- Overview
- Business and domestic software
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- Figure 48: Development of the business and domestic software publishing industry, 2015-19
- Figure 49: Composition of the business and domestic software publishing industry, by company size, 2019
- The customisation sector
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- Figure 50: Development of the computer consultancy industry, 2015-19
- Figure 51: Composition of the computer consultancy industry, by company size, 2019
- Other software publishing
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- Figure 52: Development of the other software publishing industry, 2015-19
Competitive Strategies
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- So many strategies are clouded in an international market
- From product to service
- M&A – a feature of the industry
- Leveraging sales
Company Profiles
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- International Business Machines (IBM)
- Activity
- Performance
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- Figure 53: Financial performance of IBM United Kingdom, 2014-18 (£ million)
- Strategy
- Micro Focus International
- Activity
- Performance
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- Figure 54: Financial performance of Micro Focus International, 2015-19 (US$ million)
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- Figure 55: Product breakdown of Micro Focus International turnover, 2019 (US$ million)
- Strategy
- Microsoft Corporation
- Activity
- Performance
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- Figure 56: Turnover segmentation of Microsoft, 2019 (US$ millions)
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- Figure 57: Financial performance of Microsoft, 2014-18
- Strategy
- Oracle Corporation
- Activity
- Performance
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- Figure 58: Financial performance of Oracle Corporation UK, 2014-18
- Strategy
- SAP (UK)
- Activity
- Performance
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- Figure 59: Financial performance of SAP UK, 2014-18 (£ million)
- Strategy
- Salesforce.com
- Activity
- Performance
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- Figure 60: Turnover development of SAP, 2016-20
- Strategy
- Zoom
- Activity
- Performance
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- Figure 61: Turnover development of Zoom, 2018-20 (US$ million)
- Strategy
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade associations
- Trade magazines
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