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Supporting the IT underdogs

A News.com reader writes that the IT sector is starting to resemble the more conventional industries. Barriers to entry are getting higher and scale is the name of the game.

 

  
Supporting the IT underdogs

In response to the Feb. 8 column by Charles Cooper, "Developers feel the squeeze":

As an entrepreneur who witnessed the decline of the information-technology market in 2001, I could not agree more with your argument. The entire IT sector, not merely software, is starting to resemble the more conventional, "mature" industries. Barriers to entry are getting higher, cost of capital is rising, and scale is the name of the game.

However, unlike building an automobile (which saw a similar concentration of power in the hands of the Big 3), writing software is still a highly personal/individual process, much like composing a poem or painting a picture. The current trend seems to point toward a model where independent software writers (with competencies such as creativity and strong familiarity with end-user/business issues) will be commissioned by the larger software publishers (with competencies in marketing, distribution, channel alliances, sourcing capital and organization building). This trend has already solidified in the gaming industry, where a few of the top publishers, such as Electronic Arts, now control the market, and the small game-development companies have to be content with being just that--independent game writers.

But I still believe that individual creativity, passion for great design and unique insights will continue to drive software development. Huge corporate entities have not proven themselves to be very adept at this kind of thinking, and that's what gives many small companies the courage to remain in the game.

Krishna Moorthy
Bridge-X Technologies
East Windsor, N.J.

 

 

    
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