Software suppliers.(are turning to support and integration services)(Brief Article)

Purchasing, October, 2000

Software suppliers are turning to support and integration services as a way to get closer to their customers and as a revenue generator, reports IDC. "As margins in both hardware and software markets shrink and product differentiation diminishes at an increasing rate, suppliers are looking to service offerings to provide greater margins as well as a basis of differentiation," says Ana Volpi, senior analyst for IDC's Software Support and Integration Services research.

As the nature of software support and integration shifts, the market's worldwide revenues will increase from $35.2 billion in 1999 to almost $71 billion in 2004. Predictive/preventive maintenance is growing the fastest, with a 1999-2004 compound annual growth rate of 33%.