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Is The Software Industry Dead?

A reader writes:" Ok. So I'm about to graduate and then I come across this story: Do Software Firms Have Bright Future? None other than Larry Ellison of Oracle thinks that the best is behind us and that software is a dead industry. What does the rest of slashdot think? Will that shiney new degree be worthless? " I think it's safe to say that it's not dead - but that the times it once had aren't going to return; e.g. tulip blubs sell well, but not like they used to.

5 of 726 comments (clear)

  1. No it is Oracle and Sun that are hurting... by glenrm · · Score: 5, Interesting

    not the software industry. If you look at open source/power personal PC trends it is the high dollar software and hardware vendors that are in real trouble. It is interesting to note that most people here view MSFT = bad and Linux = good, but really both provided computing power to everybody at a much lower cost than some (Orcale, Sun, etc.) would like...

  2. Re:Depends on the division. by Angry+White+Guy · · Score: 5, Interesting

    Just like any recession, some industries tend to be insulated from the economic woes that surround them. Anything that will allow people to escape reality feels less impact, and in some cases, has positive growth. Alcohol is a prime example of an industry which operates in direct contradiction to recessions, and if you're too young to drink, games can be a replacement.

    --
    You think that I'm crazy, you should see this guy!
  3. Dull Degree by x311 · · Score: 5, Interesting

    I am also going to be graduating with a computer science degree. When I started four years ago this was the degree to have if you wanted to be guaranteed a job. Now it seems run-of-the-mill and it does not set you apart from the masses whatsoever. In job hunting, I have found that if you only have a computer science degree you are not going to easily find a job. Everyone wants experience or special abilities. For this sole reason I am staying on in college another semester to get my philosophy degree to set myself apart from all the other generic computer science grads. No longer will a cpu sci degree be enough. It's sad how things have changed so badly in the last four years......

  4. The software industry... by defile · · Score: 5, Interesting

    ...is not the industry that most programmers work in.

    If you're getting a degree in software development, there's about a 98% chance that if you write code, it will be for a custom business system that will never be used outside of the company you work for.

    Programmers rarely work in software product companies, and in those companies the programmers find themselves to be the minority (both in number and in pay) -- overshadowed by marketers, admins, and lawyers. Their jobs are to produce the product, worked 18 hours a day, paid what amounts to minimum wage, and maybe one day it might result in a royalty check.

    See, the software product industry doesn't really exist. The billions of dollars made by Microsoft are in truth a bizarre anomoly that most companies have not been able to recreate. That is not to say that other companies don't sell software profitably too, but in those cases the software is sold as simply a service offering vessel. Microsoft is one of the few that can sell a shrinkwrap product to millions of people and walk away from them until it's time to sell them the next release.

    Other cases where software is sold as a product usually has nothing to do with the rest of the software industry. The box is an end user consumable like entertainment content or some kind of shovelware gimmick.

    It is the software product industries Ellison is talking about when he says the software industry is on the decline. He probably even sees it in his own company. No one buys Oracle for the sake of having Oracle software, they buy Oracle so they have Oracle's support infrastructure behind it.

    So while the software product industry may be on its way out, it doesn't mean you should switch majors just yet.

    The software systems and services industries are poised for a boom. Businesses are starting to collect more information, expanding into more markets, becoming (finally) a little more computer literate. It is in these fields we can seek to sell ourselves, and it is also in these fields we can best sell Linux and open source.

    1. Re:The software industry... by rsadasiv · · Score: 5, Interesting

      >>...is not the industry that most programmers work in.

      This is absolutely true. However, the interesting point is that the software industry is trying to encroach on the industry in which most programmers do work: internal IS custom development.

      For example:

      Many millions (billions?) of programmer hours have been invested in writing slightly different versions of a double entry accounting system. Look around your company - there is at least one person making a decent living supporting custom accounting/hr/payroll applications. The software industry (Oracle, SAP, PeopleSoft, Siebel, etc) is agressively trying to put this person on the unemployment line. The fact that these companies have not yet been successful in this attempt does not change my opinion that eventually they will be successful: off-the-shelf (OTS) vs. custom is a solved problem, and it is only a matter of product iterations (5?) before the field is cleared.

      In fact, outside of data processing (collecting information in a relational database and running reports on said data), the battle between OTS and custom is over. The fact that the battle between the commerical software industry and the open source software industry in these arenas is ongoing is irrelevant to the 98% of software developers employed by internal IS. Today, no one in your company in making a living writing device drivers, operating systems, network stacks or word processing programs, as they might have been 10-15 years ago.

      So, if current trends continue, what is the prognosis for the mainstream software developer? Are we auto mechanics - our services commoditized and wages lowered by massive standardization and upstream quality improvements? Are we electrical engineers - our hand crafted circuits driven out by general purpose registers and instructions? Are we secretaries and typists - destroyed by a cultural change and widespread adpotion of do-it yourself tools (computers, word processing software and voice mail systems)?

      I don't know. If I did, I would be as rich as Larry Ellison.

      Ram Sadasiv