May 18, 2005

Is the enterprise software licensing business dying?

Author: Andy Singleton

Is the enterprise software business dying? Is anybody out there buying new licenses? Based on news from the past few weeks, it seems that there are very few buyers. The collapse of new licensing revenue isn't news -- it started five years ago -- but the latest news makes it look like a permanent and accelerating fact of life for software vendors.

This article, titled "IT Execs to Vendors: Your Software Stinks," sets the tone for the industry's most recent quarter. Ouch! It contains the astonishing claim by the CIO of British Petroleum that out of a $2B IT budget, only $30M is allocated for new software licenses.

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