Gartner: Long term trends

In my previous post It's not enough that the IT solutions works
http://lodahl.blogspot.com/2007/11/its-not-enough-that-it-solutions-works.html I discussed the fact that open source software is challenging the traditional software marked.

In my blog post, I recommend that the declining cost is used as investments in new and valuable software like collaboration software or other software that adds value and supports the business processes.

Gartner Group has just revealed a report about Long-Term Trends That Will Radically Alter Licensing in the Software Market
http://www.gartner.com/DisplayDocument?id=533714.

This report is discussed in the computer magazine C|net

We would advise IT organizations to use BPO (business process outsourcing) and open-source alternatives to improve their negotiating power with software suppliers, as well as employing the emergence of third-party vendors as a means to reduce higher maintenance fees on older versions of software,

http://www.news.com/Software-licensing-costs-predicted-to-fall/2100-1011_3-6219263.html

According to Gartner, the software prices will decrease in the upcoming decade. The reduction is caused by several things in the marked:

1. Increased Use of BPO (business process outsourcing)
   
2. Increased Use of SaaS (software as a service)
3. Low-Cost Development Locations Combined With Modular Architectures
4. The Emergence of Third-Party Support Offerings
5. Growing Interest in Open-Source Software
6. Emerging Chinese Software Companies
7. Rapid Expansion of Chinese, Indian and Brazilian Markets Drives Demand for Lower Costs