Soft money: Trends favouring SaaS and cloud computing have assisted revenue growth

The Software Suppliers industry has expanded over the past five years, driven by growth in mobile usage, and cloud computing usage among businesses. Cloud computing has enabled industry operators to move from supplying software products outright to engaging in a Software as a Service (SaaS) business model, where clients pay an annual or monthly subscription fee for software. This model has supported sales and reduced concerns related to software piracy. Cloud computing also allows for seamless updates and increasingly powerful software packages. Industry revenue is expected to increase at an annualised 3.6% over the five years through 2018-19, supported by greater demand for software and the move to subscription-based services...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 14-19
3.6%
Forecast Growth 19-24
Profit
Employment
26,372
Businesses
3,640

Industry Threats & Opportunities

  • The industry has shifted towards online sales as cloud computing has become widespread
  • Online platforms have allowed greater external competition from foreign software providers
  • The continuing rollout of the NBN is expected to help drive demand for software
  • Industry Report - Industry Locations Chapter

    The industry is largely concentrated in the eastern seaboard states of New South Wales, Victoria and Queensland. The distribution of businesses correlates with overall population and concentration of businesses across the country. The eastern seaboard states tend to attract the head offices of large corporations, small- to medium-size enterprises and government. These states typically have a ready supply of skilled staff, fast internet connections and are located nearby to other major corporations, which account for the industry's largest market. The remaining states and territories account for relatively small percentages of industry establishments, as high-value software products typically cater to the business segment, which is more likely to reside in the more populous states. Fur...purchase to read more.

    Additional Insights for the Software Suppliers Industry

    IBISWorld has determined the most important Key Success Factors for the Software Suppliers are:

  • Effective product promotion
  • Access to the latest available and most efficient technology and techniques
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on computer software and Business confidence index in the Software Suppliers industry impact industry performance..

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    What's in this report

    What is the Software Suppliers Industry?

    Industry operators primarily wholesale computer software and provide services related to computer software. The industry includes distribution of physical software, digital downloads and related after-sales service, but excludes consulting services.

    Industry Products
  • Operating systems and productivity software
  • Database, storage and backup software
  • Business analytics and enterprise software
  • Video game software
  • Design, editing and rendering software
  • Security software
  • Industry Activities
  • Software wholesaling
  • Digital software retailing
  • Software support services
  • Cloud software services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Capital expenditure on computer software
  • Business confidence index
  • IT and telecommunications adoption
  • Demand from video game, dvd and recorded music retailing

  • Current Performance
  • Online trends
  • Subscription models
  • Smartphone usage
  • Data protection regulations
  • Offshoring support services
  • Chart: Revenue Growth

  • Industry Outlook
  • Cloud computing
  • Service focus
  • Local development
  • Table: Software Suppliers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Software Suppliers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Video Game, DVD and Recorded Music Retailing
  • Financial and Insurance Services
  • Education and Training
  • Professional Services
  • Computer and Software Retailing

  • Key Selling Industries
  • Data Processing and Web Hosting Services
  • Intellectual Property Leasing

  • Products & Services
  • Operating systems and productivity software
  • Database, storage and backup software
  • Business analytics and enterprise software
  • Video game software
  • Security software
  • Design, editing and rendering software
  • Chart: Software Suppliers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Corporations
  • Retailers
  • Governments
  • Small and medium enterprises
  • Households
  • Chart: Major Market Segmentation for the Software Suppliers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Software Suppliers

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Software Suppliers Industry

  • Industry Globalization
    Oracle Corporation Australia Pty Limited, Atlassian Australia 1 Pty Ltd, SAP Australia Pty Ltd, Microsoft Pty Limited,
  • Table: Oracle Corporation Australia Pty Limited - financial performance
  • Table: Atlassian Australia 1 Pty Ltd - financial performance
  • Table: SAP Australia Pty Ltd - financial performance
  • Table: Microsoft Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Software Suppliers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Software Suppliers Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cloud Computing
  • The use of remote servers hosted on the internet to manage, access and process data.
  • On-Premises Computing
  • Software installed and run on computers on the premises, rather than in the cloud.
  • Software As A Service (Saas)
  • A software delivery method where software is hosted in the cloud, with clients paying a subscription fee rather than purchasing software outright.
  • What Our Customers Say

    Why buy this report?

    The Software Suppliers market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Software Suppliers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Software Suppliers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Software Suppliers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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