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Software today may well be the largest single class of assets in the world, but it is intermingled with many other components, so distinguishing its contribution is not simple.So, for reasons discussed below, it is not measured that way.
Personal computers, mobile telephones, and consumer entertainment devices are morphing together in ways that will wrench the communications, entertainment, and publishing industries for decades to come.
The size of the gaming industry, valued around $35 billion, is rapidly approaching the $38 billion music industry and has already surpassed the motion picture industry and continues to grow its hold on the leisure time worldwide.
It does not attempt to answer the questions raised.
It does distill over 40 years of personal experience creating, maintaining and using software and managing others doing these tasks from multiple perspectives over a varied career.
The result is that investors are left in the dark about a company’s single most valuable asset.
I for one fail to understand how that is in the best interest of investors.
A firm is an information system—one composed of highly decentralized computing by fallible agents called people.
In many cases, the value of a firm is entirely tied up in the value of its software systems.
This paper is an attempt to start a search for what is a good economic model for software.
This is an attempt to state the problem, in the belief that all good work begins with a correct problem statement.