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Trends
in The Software Industry
Business value comes from higher margin and larger scale,
which are driven by differentiation and low-cost strategies.

              Higher
              Margin

               Differentiation


                                            Industry Trends
                                    $
                                                  $$$




                                  Trap of
                                                  $
                                 Standard


                                                              Larger
                                               Low-cost       Scale
                                                                       2
Consumers demand innovative converged devices which
creates competitions among CE, IT and TC. But it may not
be bad because the total market size is increased as well




        CE                            CE
                                                                  ?
  IT           TC               IT             TC

                                               Collaborations
        Past                         Present    via software    Future
Notes
 • CE: Consumer Electronics
 • IT: Information Technology
 • TC: TeleComm
                                                                         3
The really disruptive challenge is that companies have
developed proprietary vertical-integrated software so long …

          Company X (CE) Company Y (IT) Company Z (TC)


               Apps           Apps          Apps




             Framework     Framework      Framework




              Engines       Engines        Engines




                OS            OS             OS


                                                               4
… while the new converged industry is evolving to open
standard horizontal-integrated system now

                Company X (CE) Company Y (IT) Company Z (TC)

    App
  Company            Apps           Apps          Apps
(Angry Birds)

Framework
 Company          Framework      Framework      Framework
(QT, RoR)

  Engine
 Company           Engines        Engines        Engines
 (SQLite)

    OS
 Company             OS             OS             OS
  (Linux)
                                                               5
More technically, the products were isolated and therefore the
competitions were less fierce in the past


                               IPO               IPO

        IPO


                                                       IPO
                                           IPO

                IPO

                                                 IPO



                                     IPO
Note:
 • IPO: Input-Process-Output

                                                                 6
But the new converged industry is connected inevitably,
which creates new opportunities for (online) apps but
deprecates (open) terminals

                               IO                            IO

        IPO

                                    P
                                                                  IPO
                                                   P

                  IO
                                        P                    IO



                                        IO
Note:
 • IO: Input-Output, including browser/app support
 • P: Process, including raw hosting, IaaS, PaaS and SaaS
   with multiple languages, databases, frameworks and libs
                                                                        7
Drawing architecture is nice. But practical experiences are
even more important !


   “Talk is cheap.
 Show me the code.”




                                         “What is often mistaken for
                                         15 year’s experience, is just
                  Linus Torvalds             1 year’s experience
                 Creator of Linux            repeated 15 times.”


                                    Common Sayings
                                                                         8
We have to understand new languages in the new world first,
 which past experiences not necessarily help


                                                                                                      Apr    Apr Apr Apr
                                                                                       Language
                                                                                                     1987   1997 2007 2012
                                                                                           C          1      1    2    1
                                                                                         Java         -      3    1    2
                                                                                          C++         7      2    3    3

                                                                                      Objective-C     -      -    42   4

                                                                                          C#          -      -    8    5
                                                                                          PHP         -      -    4    6
                                                                                        (Visual)
                                                                                                      5      4    5    7
                                                                                         Basic
                                                                                        Python        -     22    7    8
                                                                                       JavaScript     -     18    9    9
                                                                                          Perl        -      6    6    10




Source: http://www.tiobe.com/index.php/content/paperinfo/tpci/index.html visited on 23rd Apr. 2012
                                                                                                                           9
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Trends
in The Software Industry

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Trends in the software industry

  • 2. Business value comes from higher margin and larger scale, which are driven by differentiation and low-cost strategies. Higher Margin Differentiation Industry Trends $ $$$ Trap of $ Standard Larger Low-cost Scale 2
  • 3. Consumers demand innovative converged devices which creates competitions among CE, IT and TC. But it may not be bad because the total market size is increased as well CE CE ? IT TC IT TC Collaborations Past Present via software Future Notes • CE: Consumer Electronics • IT: Information Technology • TC: TeleComm 3
  • 4. The really disruptive challenge is that companies have developed proprietary vertical-integrated software so long … Company X (CE) Company Y (IT) Company Z (TC) Apps Apps Apps Framework Framework Framework Engines Engines Engines OS OS OS 4
  • 5. … while the new converged industry is evolving to open standard horizontal-integrated system now Company X (CE) Company Y (IT) Company Z (TC) App Company Apps Apps Apps (Angry Birds) Framework Company Framework Framework Framework (QT, RoR) Engine Company Engines Engines Engines (SQLite) OS Company OS OS OS (Linux) 5
  • 6. More technically, the products were isolated and therefore the competitions were less fierce in the past IPO IPO IPO IPO IPO IPO IPO IPO Note: • IPO: Input-Process-Output 6
  • 7. But the new converged industry is connected inevitably, which creates new opportunities for (online) apps but deprecates (open) terminals IO IO IPO P IPO P IO P IO IO Note: • IO: Input-Output, including browser/app support • P: Process, including raw hosting, IaaS, PaaS and SaaS with multiple languages, databases, frameworks and libs 7
  • 8. Drawing architecture is nice. But practical experiences are even more important ! “Talk is cheap. Show me the code.” “What is often mistaken for 15 year’s experience, is just Linus Torvalds 1 year’s experience Creator of Linux repeated 15 times.” Common Sayings 8
  • 9. We have to understand new languages in the new world first, which past experiences not necessarily help Apr Apr Apr Apr Language 1987 1997 2007 2012 C 1 1 2 1 Java - 3 1 2 C++ 7 2 3 3 Objective-C - - 42 4 C# - - 8 5 PHP - - 4 6 (Visual) 5 4 5 7 Basic Python - 22 7 8 JavaScript - 18 9 9 Perl - 6 6 10 Source: http://www.tiobe.com/index.php/content/paperinfo/tpci/index.html visited on 23rd Apr. 2012 9