Small business software market to pass $ 9 0 0 0 M Total application software expenditures by small business computer (SBC) end users are expected to exceed $9 billion by 1985, reflecting a compound annual growth rate of more than 32 per cent. The greatest growth in sales of both systems and application software will occur in either the first-time segment or among those who have recently migrated from very small business computers, according to a market research report released by Creative Strategies International ICSl), a US firm. The increasing movement of SBCs into smaller business establishments will result in significant changes in market share, with software distribution middlemen and systems houses realizing the greatest gains. Small businesses lack the resources necessary for inhouse development and will depend on packaged applications software supplied by independent sales organizations, mail-order house, brokers and software publishers. Small computer manufacturers face a perplexing situation as the software market unfolds. While they do not see themselves as being in the application software business, they are also aware of the long-term consequences of playing only a 'concerned spectator's' role with regards to software generation. These manufacturers recognize that software sells hardware, and their systems and policies must be configured to encourage the development of third-party software for their equipment and to allow their machines to run on existing software products. Many manufacturers will also closely examine the feasibility of more direct participation in the application software creation process. The development of application software is an expensive labourintensive process that will continue to resist the cost-reduction patterns that have characterized the hardware side of the SBC industry. The nature of application software manufacture will remain more an art than a science, and no quick fix will be found to increase programmer productivity. Software piracy remains a primary
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concern within the SBC industry. Opinions regarding the severity of this problem vary widely, but according to CSI's report, it will not be a major deterrent to the SBC software development process. Most amateurs will be stopped from unauthorized use by relatively simple protection techniques, and software professionals, while having the ability to frustrate software protection techniques, will have too much at stake to risk being caught dealing in pirated software packages. Nevertheless, the protection system that promises the most efficiency will enjoy strong endorsement and use from software developers. SBC application software strategies costs US $1200.00 and is available from Creative Strategies International,
4340 Stevens Creek Bird, Suite 275, San Jose, California 95129, USA. Tel: (408) 249 7550; or CSI/London, Banda House, Cambridge Grove, London W60LN, UK. Tel: 01-741 4767.
Pitfalls for 3rd World In developing countries, unplanned growth of computing with ad hoc activities sponsored for short term commercial or political reasons would result in expensive mistakes. It would waste resources through duplication of the kind of mistakes previously experienced in more technologically advanced and slow down the rate of development. This view was expressed by the Director of the UK Council for Computing Development, Mr Julian Bogod at the Second National Seminar on Computer Use held in Sri Lanka under the auspices of the International Labour Organization. The UK Council for Computing Development is a new nonprofitmaking body set up by, amongst others, the UK Department of Industry and the British Computing Society to promote the development of computers in the Third World.
Logica results show sharp rise in profits The Logica Group has announced revenues at £26.4M for the financial year ended 30 June 1981, a growth of 41 per cent on the previous year. Staff numbers increased to more than 1000. Average revenue per staff member grew by 25 per cent, thus showing substantial real growth in output per person. Logica Holdings revenues increased by 40 per cent from .£15M to £21.2M and new business secured increased by 50 per cent to £23.1 M. Pretax profits at £1.7M were sharply up on those of the previous year. In spite of the severe recession operations in the U K expanded, with revenues increasing by 29 per cent and sales by 60 per cent. Exports from the UK were affected by the relative strength of sterling during the year, but operating companies outside the UK grew rapidly. Overall 42 per cent of Logica's business was for clients outside the UK. Operations in the USA doubled during the year and greatly contributed to Group profits. Sales and revenues in Australia each exceeded $1 M Australian for the first time.
At year end Logica Inc. merged with the operations of Freyberg Systems Associates to form an enlarged Logica Inc. Research and development continued in image processing, voice recognition, software engineering, database systems, tel evision technology and manufacturing and process control. Logica VTS reported revenues in excess of £5M for the year with pretax profits of £360000. The 2200 stand-alone word processor moved into volume production. The company's own local area network-based system has now been in use in the London office for over a year. This work has resulted in new product, Polynet, one of the first open networks to which systems and intelligent terminals from different suppliers can be connected. Logica VTS and Logica Holdings are involved in project Universe, an experiment to link LAN-based systems via the ESA's OTS satellite and Polynet orders have been received from other organizations involved in the project.
microprocessors and microsystems