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Is Software Still Eating the World?

Software breeds predictability – which is nothing to sneeze at, especially during economic tumult. Further, it permeates nearly every aspect of most organizations – that is to say, software purchasing extends far beyond the IT department. The headwinds and tailwinds shaping the software market – a nearly trillion-dollar industry with double-digit growth – should be on every executive’s radar.

Zoom out | MGI Research forecasts that the software industry will grow from $893 billion in 2022 to $1.36 trillion in 2026, representing a 5-year CAGR of 11.17%.
Software companies in the United States will dominate the industry, with their revenues more than double the combined revenues of all other software companies globally.

The intrigue | Growth in the software industry is being driven by both vertical and horizontal applications, lower-than-ever development costs, and tech’s new best friend, ChatGPT.
Geopolitical turbulence, labor shortages, and inflation threaten to stand in the way of growth.
But remember: behind every “digital transformation” is the substantial adoption of new software.

Service-as-a-Business Reference Model

We all know the value of a good product. Afterall, the tech market is bigger than you think, and software is still eating the world. As tech continues to embrace the XaaS business model, many providers are left wondering: what about the value of services?

In 2022, we estimated that services (including professional services and services organizations within product companies) represent more than $40 trillion. Soon, we will publish a research note summarizing our forecast for the services industry’s size and growth trajectory over the next 5 years.

Early Insights |  We project the service economy will grow at a CAGR of 6.45% over the next five years. Meanwhile, professional services – a subset of the overall services industry – will grow nearly twice as fast.

• In the meantime, learn about the Service-as-a-Business (SaaB) reference model, and find out if your organization is committing the 12 Deadly Sins of Managing a Services Business.

Service-as-a-Business Reference Model

We all know the value of a good product. Afterall, the tech market is bigger than you think, and software is still eating the world. As tech continues to embrace the XaaS business model, many providers are left wondering: what about the value of services?

In 2022, we estimated that services (including professional services and services organizations within product companies) represent more than $40 trillion. Soon, we will publish a research note summarizing our forecast for the services industry’s size and growth trajectory over the next 5 years.

Early Insights |  We project the service economy will grow at a CAGR of 6.45% over the next five years. Meanwhile, professional services – a subset of the overall services industry – will grow nearly twice as fast.

• In the meantime, learn about the Service-as-a-Business (SaaB) reference model, and find out if your organization is committing the 12 Deadly Sins of Managing a Services Business.