Our software coverage focuses on three broad themes: the shift from proprietary

operating systems to open standards, the purchase of software as a subscription, rather

than as a perpetual license; and the likelihood of further consolidation within the sector.

We expect the backlash against software companies seeking to impose their proprietary

tools on developers to continue. Increasingly, companies have come to rely on open

standards for developing and introducing software applications. Companies focused on

open standards include Microsoft, Adobe Systems, and TIBCO Software.

A second major trend within the software sector is the desire on the part of customers to

pay for products on a subscription basis, rather than be locked into expensive, up-front

perpetual license products. Software as a subscription service allows companies and

consumers to pay only for the software they use, in much the same way that consumers

pay utilities for electricity. Our coverage includes a number of companies that have

adopted this approach, including Salesforce.com, Symantec, and RightNow

Technologies.