Software industry

The software industry produces a pervasive technology with a large share of software being developed by users in different sectors. An independent software industry emerged from vertical disintegration of the <SC>computer industry</SC> and IT-intensive users such as financial organizations and telecommunications. With the diffusion of Internet, the strategies of software firms converge with those of information technology services (e.g., data processing and outsourcing market, IT consulting) and Internet software and services. Although the sources of competitive advantage in these markets remain different, several traditional software firms diversify in the service sector by offering software applications as a service.