In recent years, it has become apparent that software is the driving
technology in the computer industry. From the evolution of the UNIX and
Windows platforms, we have seen that applications and markets are defined
by software, rather than by the hardware in place, as had been the case
with earlier platforms like the mainframe, VAX and AS400. Moreover, we
have been told in our interviews that as much as 70% of the cost of developing
a new hardware system is actually spent on software development. Our research
also confirms that 80% of the lifetime cost of purchasing and upgrading
a computer system is actually spent on software purchase, license, development
(in-house or outsourced) and maintenance. Even microprocessor design, once
a CAD-based activity, is now largely a coding and debugging process using
a special-purpose software language called a hardware definition language.
As processor and peripheral manufacturing move to the Third World, we recognize
that the future of the US computer industry lies in design, networking,
telecommunications and interactive content, all based on sets of complex
software technologies. On the downside, we also see that major computer
industry problems such as interoperability, systems errors and project
failures are in large part software problems. Thus, our examination of
the computer industry must include a careful measurement and analysis of
the software industry. Through interviews, student research and small-scale
surveys, we are well along in the process of identifying the key issues
- business, public policy, and educational issues, that have shaped the
software industry. As we continue to investigate how these issues will
influence the future development of the industry, we have also established
an extensive, multi-faceted dialogue with software industry leaders and
other interested groups in the US and abroad to augment our research activities
as well as to disseminate our research findings most effectively.