Software Houses: Changing from Product Vendors into Solution Providers

8 Pages Posted: 1 May 2005

See all articles by Stefan Heng

Stefan Heng

Baden-Wuerttemberg Cooperative State University

Date Written: April 2005


Integrating hitherto separate IT systems while keeping within with tight budgetary restrictions is becoming the dominant software trend in this decade.

Optimism is currently starting to spread again in software houses. However, there are marked regional differences in potential. Contrary to some forecasts, the US software houses are in the process of consolidating their already dominant position in the global market thanks to their economies of scale, combined with the network effect. Conversely, the only chance for most of their typically small European competitors to score points is in certain niches of the market.

Keywords: System software, application software, CRM, ERP, SCM, Web services

JEL Classification: L15, L81, O14, O33

Suggested Citation

Heng, Stefan, Software Houses: Changing from Product Vendors into Solution Providers (April 2005). Available at SSRN: or

Stefan Heng (Contact Author)

Baden-Wuerttemberg Cooperative State University ( email )

Coblitzallee 1-9
Mannheim, Baden-Wuerttemberg 68163
+49 621 4105 1183 (Phone)
+49 621 4105 1245 (Fax)


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