Quest for Intelligence in Business Processes Will Fuel the SoftwareMarket, IDC Says

FRAMINGHAM, MA – JUNE 19,2000 — If you are wagering on the oftware market, IDC says the smart money will bet on applications, tools, or nfrastructures that add intelligent, closed-loop feedback to business rocesses. In 1995 with the emergence of CyberSmart computing, companies began o achieve their first real productivity gains attributed to IT investments, but these gains pale in comparison to what is possible, according to IDC.


"The shift to CyberSmart computing is the single most important reason for the surge in productivity in the last few years of the 1990s and the reason for the enormous enthusiasm for ebusiness today," said Tony Picardi, Sc.D, senior vice president of IDC's Global Software research. "Businesses have finally figured out that computing for the sake of using computers to automate old business processes doesn't really generate productivity gains. Businesses have stumbled on the fact that adding closed-loop iterative analysis to IT is the key to competitive advantage."

IDC defines CyberSmart computing as combining smart information with natural user interfaces in applications that know no bounds on the extended computing network_ they have total operating environment transparency.

For the next few years at least, demand for software will be impacted by how software tools, applications, and system services facilitate and lower the lifetime costs of implementing strategic business feedback processes, which are more often than not related to ebusiness.

Internet strategies that will fuel the software market include attack and defend etailing, end-to-end integration, market creation, customer as designer, and open source value creation. IDC believes the following types of software will benefit the most from Internet strategies during the next five years: security software, system and network management, databases and XML servers, application life-cycle management, Java-based languages, middleware, and application servers. IDC expects software users to target four operating environments. A combination of Windows versions will dominate desktop multipurpose computers on the client side. On the server side, Unix, Windows, and Linux will contend for the Internet initiative workloads.

IDC's report, eBusiness and Internet Strategies: Foundation for Software Megatrends (IDC #B22288), looks at the business and technology initiatives that will stimulate software markets in the first part of the new millennium. The report also discusses factors that cause variances in regional demand and factors that affect trends in the operating environments for software. To purchase the report, contact Cheryl Toffel at 1-800-343-4952, ext. 4389 or at

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

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