PwC's Global 100 Software Leaders driven by three key trends
(Thomson Reuters ONE) -
Most recent ranking shows startup vendors disrupting the industry and
challenging established software companies
NEW YORK, June 22, 2016 (GLOBE NEWSWIRE) -- PwC's new Global 100 Software
Leaders ranking illustrates a rapidly shifting landscape and reveals three key
trends among companies that are taking advantage of both evolutionary and
revolutionary changes in the software industry.
An infographic accompanying this announcement is available
at: http://www.globenewswire.com/NewsRoom/AttachmentNg/6f6437d7-3fd2-429d-a595-
d4476a0986bb
Within this shifting environment, the interwoven trends of digital
innovation, Industry 4.0 and convergence are driving opportunities to create
smarter, leaner and better software. As these trends fuel the industry, we're
seeing an increasing number of startups coming to the forefront, adding to the
challenges facing legacy software vendors and their customers.
The three key themes weigh heavily on PwC's overarching research findings:
* The software industry is experiencing a rapid expansion of its total
addressable market (TAM) and a high level of turbulence.
* Cloud adoption is creating new software-as-a-service (SaaS)-based business
models.
* The move to SaaS significantly impacts the revenue of traditional vendors.
* Connected devices and artificial intelligence are creating new business
opportunities.
"Everywhere we look, software is defining what products do, and it's redefining
how companies are categorised," said Raman Chitkara, PwC's Global Technology
leader. "Analysing the changes between the new Global 100 Software Leaders and
the previous ranking from 2014 indicates just how dynamic the market is-and will
continue to be."
Fourteen companies fell off the current list since the 2014 ranking, and 10 of
the previous bottom 12 are gone. "Several companies couldn't keep up their
growth and, as a result, fell off the list," says Mark McCaffrey, PwC Global
Software Leader. "There are others that are large enough to survive because they
have the cash and the wherewithal to acquire cloud companies."
Key trend #1: Digital innovation
Startups are propelling much of the dynamic creativity in the software industry,
and they are using the new world of technology as a blank canvas for software
applications across industries.
Thanks to mobility and the cloud, software can now be consumed anywhere-and
innovation can happen anywhere. But globalisation can be a double-edged sword
when it comes to innovation. Government regulations, such as the European
Union's Safe Harbour rules governing data privacy, can create confusion, and
regional companies in emerging markets can face scalability issues when it comes
time to compete against companies launched from larger markets.
Established software companies are not standing still on cloud-based customer
options. The top four companies on PwC's list all made recent significant cloud
acquisitions.
Key trend #2: Industry 4.0
Cloud continues to drive new capabilities in the Internet of Things (IoT)
through the proliferation of devices, sensors and remote or mobile objects that
automatically transmit information. In addition to a cloud-based data
repository, intelligent device software also requires the ability to transmit
and analyse data.
The cloud provides enterprises with a great deal of flexibility. SaaS vendors
appreciate the efficiency they get from hosting software. For instance, all
customers will be running the same software version. When it's time to upgrade,
they only need to change it once in their system rather than in each user's
system. Cloud adoption is accelerating but has not yet reached the tipping
point. While users' comfort with cloud is growing across the globe, there
remains some lingering doubt related to security and 24/7 accessibility. In
response, software companies are expected to increase investments for
maintaining the security, reliability and 24/7 accessibility of their products
and services.
Key trend #3: Convergence
Software is becoming more prevalent in more places, and this affects the
revenues of major industry verticals, including financial services, healthcare,
manufacturing and retail.
* Financial services - The banking industry is working hard to accommodate new
digital and mobile payment systems, and to understand how to leverage the
blockchain technology underlying bitcoin.
* Healthcare - The proliferation of networked medical devices as part of the
IoT is targeting cost reduction-a key issue for the industry-as well as
patient efficacy.
* Manufacturing - With the development of intelligent devices-from aircraft
engines to appliances-manufacturers are reimagining their customer
relationships, supply chains and business models.
* Retail - Retail firms-online and offline-are using software to change the
way they interact with and engage customers, from offering promotions on
smartphones to enhancing inventory transparency.
Given the importance of cloud, mobility and analytics for compiling and
transmitting customer and partner information, software's importance will
increase-across all segments. The companies that best leverage software to
incorporate industry knowledge with technology savvy will thrive.
What to watch for
While the cloud continues to underpin massive change, software vendors must
determine what to buy, what to own and with whom to partner-and the partnership
environment is percolating. While we're already seeing some unexpected joint
ventures between long-established corporations and startups, many companies that
seek to use software for a competitive advantage may find the choices to be
overwhelming.
"In the future, there will be no hardware without software, and software will
become artificial intelligence," says Chitkara. "Software will continue to be
central to the fast pace of change-not only in the technology sector, but across
all industries."
About the Global 100 Software Leaders
This is the fourth edition of PwC's Global 100 Software Leaders ranking since
2010. The current edition continues our tradition of monitoring and analysing
the leading companies and trends in the industry. Our goal is to help our
clients understand both the obvious and the underlying forces influencing the
software industry.
The new PwC Global 100 Software Leaders list is based on corporate financial
statements (GAAP-based where applicable), other public sources and estimates for
privately held companies, as compiled for PwC by the Global Software Business
Strategies Group at IDC. Learn more about the report's methodology here.
The initial article provides an overview of the trends impacting the global
leaders and others. Future articles will examine issues impacting the fastest
growing cloud-based companies and the larger software companies in emerging
markets.
About PwC
At PwC, our purpose is to build trust in society and solve important problems.
We're a network of firms in 157 countries with more than 208,000 people who are
committed to delivering quality in assurance, advisory and tax services. Find
out more and tell us what matters to you by visiting us at www.pwc.com.
©2016 PricewaterhouseCoopers. All rights reserved
PwC refers to the PwC network and/or one or more of its member firms, each of
which is a separate legal entity. Please see www.pwc.com/structure for further
details.
Contact:
Nicholas Braude, PwC
Tel: (617) 530-5435
e-mail: nicholas.braude(at)pwc.com
This announcement is distributed by GlobeNewswire on behalf of
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: PwC via GlobeNewswire
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Datum: 22.06.2016 - 15:45 Uhr
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News-ID 479407
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