On the Mark

13.03.2006

Vendors' shift to services ...

... revenue continues apace. Thomas Lah, executive director of the Technology Professional Services Association in San Diego, says the 21 software and 16 hardware companies listed in the TPSA's Service 50 index continue to grow their services revenue faster than software license or hardware sales. He says the latest study from Q4 2005 shows that software companies now glean 60 percent of their dollars from services, while hardware firms are at 37 percent. "This is double the percentage of [services] revenue in both industries from 10 years ago," Lah says. He says the data underscores a shift in the way CIOs are evaluating technology vendors. That is, IT users want more than just features and functions. "They want to work with companies that can unlock the potential of technology with the right services," Lah says.

Estimate virtualization savings ...

... with a free calculator. Application virtualization vendor Softricity Inc. in Boston is today releasing its Return on Virtualization Calculator gratis. David Greschler, vice president of corporate marketing, says the spreadsheet has been certified by market research firm Forrester Research Inc. Softricity worked with Forrester to design a step-by-step process by which you can calculate the difference between running software directly on PCs and handling applications virtually. For example, you can compare the difference in cost for installing and terminating programs in either fashion. Greschler is betting you'll see that the savings aren't virtual.