Software Industry Crystal Ball

There is no doubt that some software sectors have matured. As a result, the acquisition frenzy of 2006 – 2009 has slowed down, which has led to a few giant software companies dominating certain niches. Most took this trend and extended it across the broad spectrum of software and predicted that “there will eventually only be 4 software companies.” If I had 20 dollars for every time I heard that back in 2009 – 2010, I’d be playing golf on an island and not writing these newsletters. And frankly, at the time, I was a bit concerned that some of these people were correct.

Fast forward to present day. For the first time in years, there is a definite buzz of excitement in the software and technology industries and the job market has shown huge improvements. Here’s why:

(1) Companies are buying more technology due to recent economic growth and to also increase productivity.

(2) 5 hot sectors in technology: Cloud, Social Media, Virtualization, Mobile computing and Big Data/Data Management. All 5 are explosive growth technologies on their own.  More importantly, they are creating numerous companies and new technology niches because of their rapid adaptation. New, much more sophisticated Security Software, Mobile Data Management and Social Media Compliance are a few that come to mind.

(3) The A players are starting to look around. A true sign that the market is improving. During a recession, most A players will generally gravitate towards one of the giant software companies to ride out the storm. Now that there are numerous exciting opportunities with some of the aforementioned companies, many of them have made the leap. For those of you working at one of the giant
companies, take a look around. I would bet you’ve recently seen a few of your
peers leave their positions for a higher growth or more exciting company.