Menu
Tough year ahead for application software vendors as Covid-19 impacts licensing

Tough year ahead for application software vendors as Covid-19 impacts licensing

Application software companies face "sterile year"

Credit: Dreamstime

Application software companies will have a tough 2020 as the Covid-19 pandemic slows the licensing of software products.

Our latest report - Covid-19 Impact on Application Software - reveals that the continued fallout from the pandemic will undermine companies’ and industries’ propensity to buy, delay product launches, and transform the way software applications are developed and written.

Application software companies face a sterile year, with latest product releases struggling to escape Covid-19’s cloying grasp. The spring software product launch season will be less dynamic than usual because of user and market uncertainty. Only the collaboration tools market epitomised by Slack and Zoom will generate any fizz.

Even Microsoft, which recently reported strong third-quarter results and ranks second on the thematic screen of GlobalData’s application software sector scorecard, has warned of a transactional licensing slowdown from small to medium-sized businesses.

It is still early days and the true economic impact of Covid-19 has yet to hit software companies but, when it does, they will protect their profitability by slowing hiring and reducing discretionary spending.

Credit: GlobalData

The areas likely to generate revenues for software companies are applications that can support, monitor and manage the widespread shift to home-working. Specific applications include collaboration tools, human resources (HR) management, document management, IT workflow management, and risk management.

Low-code and no-code products, which are being used by organisations to respond to the public health challenges the pandemic has created, will also be in demand.

A large part of the buzz in software is generated by product launches, which are typically timed to coincide with physical conferences.

Although vendors have made noises about turning physical events into virtual ones, the rhythm of these launches has been disrupted. Offers and free trials are only a short-term fix. Software companies’ raison d’etre is to develop, launch and sell new applications.

David Bicknell is principal analyst in the Thematic Research Team at GlobalData


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftsoftwareGlobalDataCOVID-19

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments