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Gartner Says Application Development Is a $9 Billion Industry 65

Posted by timothy
from the give-or-take-59-cents dept.
CowboyRobot writes "Although not as lucrative as video games or movies, Gartner projects the software application development industry will pass the US$9 Billion mark this year. They credit 'evolving software delivery models, new development methodologies, emerging mobile application development, and open source software.' Also in the report is a projection that 'mobile application development projects targeting smartphones and tablets will outnumber native PC projects by a ratio of 4:1 by 2015.'"
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Gartner Says Application Development Is a $9 Billion Industry

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  • Otherwise that amount would already be well over 10 billion

    • And you have to remember that piracy is a major factor.

      Otherwise software development would be a $180 billion industry.

  • Is that all? (Score:5, Insightful)

    by viperidaenz (2515578) on Sunday August 26, 2012 @04:24AM (#41128067)
    My backwater country spends hundreds of millions every year on enterprise software development (which is guess is a part of application development?).With only $145M GDP and 4.4M people, how can we be a significant (significant being measured in %, not ppm) part of the worldwide market?
    • You can't because google only allows US and European citizens to sell their apps in their market.

    • From Wikipedia.

      GDP = private consumption + gross investment + government spending + (exports imports)

      Software development is part of gross investments and perhaps imports.

      Now what happens with software development they will deprecate the cost over years, so that is 100 million over 5 years. So it would account for 20 million every year. And if you import software from the US then that number effecting you GDP will go down.

      • $145 million GDP and a population of 4.4 million means an annual income per capita of $33. The Democratic Republic of the Congo, the world's poorest nation, has a figure more than ten times that. I think he meant to say $145 *billion* GDP. I believe he may be from New Zealand; I can't make the figures match up precisely, but it's close. He may have difference sources.

    • Can you share which country that is? I'm just curious and I can't find any countries that match your numbers. If you don't want to say specifically can you check/update your numbers?
    • by gl4ss (559668)

      I'm guessing that 9 Billion is actually "mobile applications" and not Programs, you know, "apps". the bullshit lingo.

      because if it really were applications as what are programs, enterprise data editing and all that.. then it's pretty fucking strange that oracle did 35 billion in revenue in 2011 if apps are just a 9 billion dollar business..

  • by Half-pint HAL (718102) on Sunday August 26, 2012 @05:13AM (#41128215)
    Nothing in the article makes a solid distinction between "video games" and "application software", and there's a danger that the bundling of games into "app stores" such as Apple's clouds the figures. The phrase "emerging mobile application development" kind of makes me worried here. Certainly app stores like big headline figures, so their reporting won't always make that distinction, and a lot of leisure software isn't really "games".
    • by Solandri (704621)
      Adobe alone is $4.5 billion, and Microsoft is $73 billion annually. So I'm pretty sure the $9 billion is only for mobile applications. It's still peanuts compared to PC software, and will be until you can put business-grade software on a phone/tablet.
  • by Compaqt (1758360) on Sunday August 26, 2012 @06:07AM (#41128349) Homepage

    applications?

    or Apps(R)?

    • by bakuun (976228)
      It must be "apps", as in software for mobile devices. Last year, Microsoft alone had revenue of $ 74 billion. Granted, they do hardware and the like as well, but the 9 billion figure is still ridiculous if were to refer to all software development. Because of this, it is unfortunate that the summary says "software application development", whereas the articles only mentions "application development".
      • by fa2k (881632)

        It seems that they include PC applications from what I can read. This quote from Wikipedia was helpful to me, (the parent seems to know how an application is defined, but I didn't)

        Application software, [..] is computer software designed to help the user to perform specific tasks.
        [...]Application software is contrasted with system software and middleware, which manage and integrate a computer's capabilities, but typically do not directly apply in the performance of tasks that benefit the user.

        Most of windows isn't an application, but Office is. Is there really a difference between "application software"/ "software application" and just "application"?

      • by Shavano (2541114)

        Also, Microsoft does operating systems, which are not counted as "applications" and services.

        Oracle, which does pretty much only applications, had sales around $37B.

        If mobile app development is at $9B it's still WAY behind desktop/laptop software sales.

        I think this is largely because sales are hampered by the platforms (iOS and Android). You buy through their markets, which are dominated by shitty apps that with very limited functionality that no users will pay for, which is why they're offered free and

  • Given all the platforms that exist out there - Windows, Apple, Linux, BSD, Unix and a myriad others, it looks like there is a rich set of target platforms to choose. And if ISVs did bundling arrangement of their software w/ various OSs out there, they could make some money on the sale of those platforms, while in the process enhancing the appeal of those platforms.
  • by Anonymous Coward on Sunday August 26, 2012 @06:36AM (#41128411)

    This is Gartner: "saying what we're paid to say for over 20 years." Why is anything they say on slashdot?

    • by Tesen (858022)

      That is what I am wondering. Gartner is paid for by their sponsers, yes the large software companies. Look at the changes in their top quadrant enterprise ETL packages over the last year or so. I have personal experience with a top right hand quadrant package they recommended end up now being dropped off a leader ETL solution. Any one that had done anything with the solution for day would have scoffed and demanded their money back.

  • FB (Score:2, Insightful)

    by udachny (2454394)

    So some silly agency says: 9 Billion is what the software applications market is worth (for the year 2012), and FB was 'valued' at 100 billion or so. What a fucking ridiculous joke these planned economies are, the price discovery mechanism is so broken right now because of all the government interventions into the economies of the world. How can anybody know what prices are right now, with all this money being printed.

    9 Billion? How much of that is inflation, how much of that is efficiencies, how much of

    • by gl4ss (559668)

      the market is actually much higher than 9 billion. this 9 billion is just a subset of sw money paid by people to make sw. what subset? I guess if you buy the gartner report you'd know. shitty article.

  • Angry Birds, the most popular paid app, its position 53. Its not even on the top 50. And since the market is horrible to discover new apps, apps neet a strong marketing. So this is a market of free apps with a strong marketing inversion. Not a market really atractive, I say.

    • by gbjbaanb (229885)

      spot the MBA. Angry Birds is not even top 50, so therefore a complete waste of time, you must spend all your efforts trying to write a new Windows to maximise profitability.

      That Angry Birds cost less and made a ton of money is forgotten in the rush to fully leverage your development funding.

      You'll note the rest of the PC market is horrible to discover new apps, at least with the mobile app stores you reduce this dramatically as your app might show up in a search, whereas a PC app will never get discovered t

      • by taxman_10m (41083)

        Maybe with games. Just myself, I'll download new interesting games that Amazon makes a free app for the day even though they may not have too many reviews. But for apps I don't install anything that doesn't have a ton of reviews and high ratings. Those apps are mostly from well established names (usually affiliated with a well established website). I'm skeptical that it's easier for someone new to break in than with PC apps.

        • by gbjbaanb (229885)

          compare the differences. Ignoring marketing, which should be even for both types - and depends on the pockets of the publisher, for a PC game you'd go to a website that lists the great new games this month and pick one. For a mobile app, you have the same kind of website but when you go to the app store to install it, you type in "great game" and you'll get a list of games with similar sounding names. Even when you install it, you'll also get a list of "what others installed" and "similar to this".

          So ultima

        • Wonderful... except that Amazon's free app of the day scheme appears to generate no income at all for the application developer, as the promised x% of normal price is normally "negotiated" to zero. This actually tends to cost the app developer money in the long run, because they have to deal with support costs (and any server costs) exactly the same as with any paying customer. The Amazon free "customers" are also usually entitled to free upgrades, which leads to a free->paying conversion rate of pract
    • by taxman_10m (41083)

      It strikes me that a lot of the apps I use (as opposed to mobile app versions of websites) are probably just holes that will eventually be filled by tablet manufacturers. Such as needing to download a file browser for my Nexus 7. How long before Google just includes one?

  • But, pinko commie open source was going to kill the software industry and leave all of us software engineers starving. How could it actually contribute to the growth of the industry?

    • by Shavano (2541114)

      But, pinko commie open source was going to kill the software industry and leave all of us software engineers starving. How could it actually contribute to the growth of the industry?

      From the article:

      "Open source software tools will continue to erode revenue for some AD categories in design, testing, and web development," said Mr. Raina. "This is being driven primarily by the success of Eclipse and NetBeans, as well as by overall revitalization of the market by new small software providers looking for technical and market-disruptive approaches for offering products. Limited budgets and economic conditions compelling enough to focus on cost reduction also fuel the use of open-source software in various development projects."

      It says open source is eroding revenue. That's consistent with the general trend of not doing good things for the revenue side of the software industry. Nobody said open source would stop development. It just is making it harder for a lot of companies to make money. But it's enabling different people to make money. It's not clear to me that they are by and large making money at it without violating at least the spirit if not the letter of the open-source licenses they're using.

      • by swillden (191260)

        Open source has eroded the market for commercial development tools -- but that never was a significant part of the overall market, and, as your quote even points out, this is largely because of the revitalization of the small software provider, meaning that free dev tools are contributing to the overall growth of the industry.

        It's not clear to me that they are by and large making money at it without violating at least the spirit if not the letter of the open-source licenses they're using.

        Cite? I can cite huge numbers of companies making massive amounts of money and fully complying with both spirit and letter. I can name a small handful of small players who violate th

  • Malware, spyware, the defenses against same, the tools utilities and services for remediating that, the profits from various nefarious software schemes.
  • ... and all I got is this lousy T-shirt.

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