Business Services Industry

SOFTWARE LEADS THE WAY FOR INDIRECT CHANNEL GROWTH DURING PC MARKET TRANSITION.

Software Industry Report, October, 1998

IT product vendors' future success or failure will be tied increasingly to their effective use of channels, according to a new report by International Data Corp. IT Product Sales Channels in the United States: Analysis and Forecast, estimates indirect sales channels accounted for $114.6 billion, or 59 percent of the $195.6 billion IT market in the US in 1997. This figure is expected to increase at an average annual rate of 9.5 percent through 2001, representing a total indirect sales value of $165 billion.

While the PC market had the highest share of indirect sales last year with 72 percent of all PC sales going through channels, the software market is clearly a primary focus of future indirect growth, according to IDC. By 2001, IDC expects a slight overall decline...

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