Companies in this industry design and publish computer software.
The US economy heavily influences business spending for software products. The success of packaged-software companies depends on technical expertise and effective marketing. Small software companies compete mainly by targeting niche markets or developing new technology. Many small companies form alliances with larger ones to market their products. The US software industry is concentrated: the 50 largest companies generate about 75% of revenue.
Products, Operations & Technology
Major product categories include application software (such as enterprise and accounting software, office suites, and games), which accounts for about 45% of industry revenue. System software — including operating systems, network and database management software, and related development tools — makes up about 20%. Some companies also provide IT support, consulting, and training services, which generate a combined 10% of industry revenue.