Furthermore, compared to most manufacturing industries, the initial capitalization of software companies can be very small. Thus, it is inadequate to truly analyze long-term trends in the industry. We are working with both industry and government agencies to help extend and normalize their data gathering processes. Our investigations to date of the Japanese software industry and of the US packaged software products segment, although natural places to begin an analysis of the software industry, represent just the very beginning of an understanding of software and its commercial impact. Software and computers cannot be separated.
Software is defined as the instructions that a computer follows to perform a specified task.
Software development starts with the specification of the task, whether it is the functionality of a microwave oven or the details of an airline's frequent flyer program, some person has to specify what he or she wants the computer to do, exactly. Sometimes sold shrink-wrapped, sometimes leased, sometimes packaged with hardware or with consulting services. Seventy-five percent of the world's packaged software is sold by US firms. Provided by firms like Andersen Consulting and EDS, these services include consulting and systems design, systems integration, contract programming and systems maintenance. However, the true impact of software on the computer industry and on almost every other major industry goes well beyond product and services sales.