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Study: More software gloom ahead

Time: 11:59 EST/16:59 GMT | News Source: ZDNet | Posted By: Brian Kvalheim

The software market continued shrinking last year and is unlikely to recover in real terms until 2007, according to a report from research group Ovum. In its annual Global Software Survey, Ovum said the $152 billion software market declined 5 percent in 2002, and although the rate of decline is slowing, it will continue falling till at least 2005. The research indicates "small growth" is likely in 2005, but the author admits that this is misleading because of currency fluctuations: "(The) currency shift flatters 2003 spending because the dollar has fallen 15 percent against the euro since December 2002, so the 2003 decline is actually one or two percent worse," said Julian Hewett, chief analyst at Ovum, in a statement.

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