As a result, the software industry is morphing into a services industry. The evidence is everywhere. Computer Associates has made establishing a services unit a top priority.
Professional services are only part of the story.
Software companies are rearchitecting products so they can be more easily distributed and managed over networks, especially the Internet, leading to applications that can be supported remotely by the software companies themselves or by third parties. Microsoft president Steve Ballmer says one of the company's highest priorities is converting Windows into a platform that can be distributed and supported over the Web, as well as be used for application hosting. That remains to be seen. But technology executives clearly welcome new approaches to software distribution, service, and support. A survey by InformationWeek Research shows Johns isn't alone in that thinking.