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Gloomy forecasts for Software Licensing says Gartner

Open source and Software as a service have been mentioned as two of the main drivers behind a fall in software licensing costs according to research firm Gartner. (opens in new tab)

The research note, (opens in new tab) issued last Friday points to seven trends that are converging to change the way software is delivered.

These include Business Process Outsourcing (opens in new tab), low cost development environments, Open Source, Software as a service, Service oriented architectures, third party maintenance and the rise of giants like China, Brazil and India.

Apart from SaaS, all those trends point to emerging markets as the hotbed of innovation and the main driving force behind a reduction in costs.

"Up until now, the unique nature of the software market has meant that buyers had very little negotiating power after the initial purchase of a software license," William Snyder, Gartner Vice President, wrote in the report.

"We expect those dynamics to change considerably over the next five to 10 years."

Although Snyder explicitly said that Microsoft (opens in new tab) won't be toppled anytime soon, software licensing is bound to experience some turbulence as the focus shifts from desktop bound software to server based applications.

And with rivals and competitors, like Salesforce, Open Office or IBM, queuing up to milk Microsoft Windows and Office software cash cows, the Redmond company will need to make sure its software licensing model doesn't become obsolete.

Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.