What are the Software Service Industry and the Related Industrial Chain?
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What are the Software Service Industry and the Related Industrial Chain?

Software Service Industry belongs to all industries that are engaged in computer system design, data and information supply services, and software publishing.
Published: Sep 24, 2021
What are the Software Service Industry and the Related Industrial Chain?

What Is the Software Service Industry?

The software service industry can be divided into industries of application system software design and development, system integration services, e-commerce, data processing services, and channel distribution.

Industrial chain of software service industry is carried out as application system software design and development companies are engaged in various fields of application software; system integrator companies are responsible for the integration of hardware and software service series and technical services consulting; e-commerce is a business transaction activity conducted on the Internet; data processing service companies provide the establishment of database information, retrieval, and analysis services, website hosting, and other related businesses; channel distributors are engaged in various software agency sales businesses.

1. Application System Software Design and Development

Mainly to meet the customer’s operational needs, to develop specific application system software, including application software developed by specific industries, such as financial, medical, and distribution industries; or special application software developed by software functions, such as business intelligence (BI), enterprise resource planning (ERP), customer relationship management (CRM), information security, etc.

2. System Integration Service

System integrations are typically defined as the process of linking together various IT systems, services, and software to make them work functionally together. They are provided thru system integrator companies in various business areas.

3. E-Commerce

It belongs to the electronic and networked aspects of traditional business activities. E-commerce includes order processing through the Internet, payment of goods through the Internet, the transmission of logistics information through the Internet, supply chain management, online marketing and transactions, online transaction processing, electronic data exchange, inventory management, automatic data collection systems, etc. E-commerce includes three business models. One is to provide technology and platform to enterprises, called business-to-business (B2B) e-commerce services; the other is to directly provide business services to the consumer and purchase in its online stores, called business Consumer-to-consumer (B2C) e-commerce services; both buyers and sellers are individuals who conduct transactions through auction sites, which is called consumer-to-consumer (C2C) e-commerce services. B2B service is to use the portal website to provide a technical platform to stores that do not operate an online business. Merchants can use its technical platform to conduct online sales business, thereby saving software construction and personnel costs. B2C service is to provide general consumers with commodity trading services through the exclusive platform of the online store. The online store needs to operate the online platform and commodity trading at the same time, and the investment resources are relatively large. The C2C service allows buyers and sellers to conduct transactions through auction sites, which are intermediaries that facilitate transactions between the two parties and charge a small transaction fee.

E-commerce, including food, clothing, housing, and transportation, can be bought and sold on the Internet, and with the popularization of smart devices, it has become a boost to promote the growth of e-commerce. Competition in Taiwan’s e-commerce market is fierce. E-commerce has expanded from virtual stores to physical stores, and physical stores have also entered the online virtual market, combining mobile shopping, through online and offline diversion models, to achieve O2O virtual and real integration; and in response to the Internet and digital With the increasing maturity of technology, the use of big data and the introduction of AI technology can collect huge consumer behavior data behind consumers, deploy a complete sales service environment, master the fan strategy, and achieve real and accurate sales towards the integration of OMO virtual and reality.

With the development of e-commerce, mobile payment has also become more and more popular. "Electronic payment" covers the most complete range of financial services. It can operate "agent collection and payment of actual transaction payments" and "electronic payment" between the payment and the recipient. The three core businesses of "Money Transfer between Accounts" and "Receipt of Stored Value". Mobile payment has become the norm, and the Internet is connected. In the future, e-commerce transactions will be more immediate and easier, and human-centric online and offline omnichannel operations will become the main source of traffic for all retailers.

4. Data Processing Services Refers to data backup, recovery, repeated data backup, and provision of website hosting services. Because the computer system is composed of many components, any component failure may cause data damage or loss, and whether it is natural disasters or man-made damage, it may cause the system to crash and become unusable. Therefore, the data processing service is to maintain corporate information Security is a very important mechanism, and it also promotes market opportunities for solving enterprise information security solutions; as enterprises gradually become electronic, the product and service ecosystem of the information security system is gradually improved; and with the changes in technology and application scenarios, cloud computing in the future In the era of, 5G and the Internet of Everything, for firewalls, user and physical device behavior analysis, endpoint detection and response, information security coordination, automation and response, network traffic analysis and other related technologies, with cloud computing, 5G, and the Internet of Things , Big data, Internet of Vehicles, Industrial control and other scenarios, and there are quite different information security practices to respond, it is estimated that it will drive the development of new information security technology and market opportunities.

5. Channel Distribution Provide packaged software sales, including commercial software, development software, office application software, etc. for domestic and foreign brand owners. It also provides customer-related software education and training to help customers and consumers use the software sold by the agency.

What Is the Cloud Computing Industry?

The cloud is the Internet constructed by the server, which has more powerful computing power. It receives user commands through the network to serve many end-users. The purpose of setting up the server is mainly to facilitate users to execute online applications, storage, and management. A lot of information. The four deployment models of cloud computing can be divided into public cloud, private cloud, social cloud, and hybrid cloud. As the epidemic affects global business interactions, the transformation of remote office and online meetings has accelerated the use of the cloud, and cloud business opportunities such as mobile applications, huge amounts of data, and social media are endless.

The cloud computing environment will change the construction model of enterprise software. Enterprises will no longer need to spend a huge amount of money to buy out software licenses. Instead, they will obtain software usage rights through the Internet by renting and paying monthly; and the office environment will be e-commerce and computer terminal equipment. Thinner and thinner. The demand for employees to use their equipment to work in the office is increasing. On the one hand, employees use their software, while the company must consider information security and data protection. Therefore, desktop virtualization will meet the needs of both parties. The cloud computing service model, Including IaaS, PaaS, SaaS, DaaS, etc. In the future, the operating system, software, and set operations can all be done through the network cloud. At present, cloud service applications are mainly IaaS, and SaaS applications are mainly e-mail, video conferencing, file sharing, etc. The future development prospects of cloud information security, cloud storage, virtual desktop, and word processing applications are considerable. Overall, COVID-19 prompted global companies to seek cloud or online ways to continue their business during the lockdown period, which in turn stimulated the growth of the entire cloud industry. It is estimated that the global public cloud market will reach 5% (2000) in the next two years. Billion U.S. dollars) and will continue to grow to 6% (279.5 billion U.S. dollars) by 2025.

The current development and application of the cloud computing market: International cloud vendors, including AWS, Microsoft, Google, and Alibaba, all position the cloud as a data-driven cloud platform in the future, and agree that the future goal is AI artificial intelligence and machine learning. The U.S. is the world’s largest public cloud market and is expected to account for 50% of total global revenue in 2021. During the COVID-19 outbreak, the U.S. market has grown by 54%, and it is estimated that 2021 annual revenue will reach US$172.1 billion; and China is the second-largest market in the world and will grow by 46% to 28.8 billion US dollars in 2021; the third and fourth places are the United Kingdom, Germany, and Japan with 15 billion US dollars, 13.8 billion US dollars, and 11 billion US dollars respectively.

Whereas cloud computing industry or cloud computing market are growing solid and rapid. This growth can be attributed to several factors, including digital transformation across various industries. The future of cloud computing are expected.

Applications and Trends

At present, the most emerging application is the application of AI combined with cloud services. In terms of the layout of the world’s major data center operators, the future applications are all cloud-native services and are developing towards modularization, using standard application programming interfaces (APIs) to interact with each other. communication. In the future, companies will implement digital transformation through cloud services, especially Asian companies focus on business transformation and IT transformation. They also plan to use 5G, artificial intelligence, blockchain, financial technology, digital currency, robotics, the Internet of Things, and autonomous vehicles. Emerging technologies such as smart cities and quantum computing.

With the increasing popularity of mobile work and mobile consumption models, mobile software has gradually eroded the existing computer software market, posing challenges to software vendors focusing on the development of traditional computer system architectures, and also spawning new types of software service providers such as communities The rise of media and development of exclusive applications is also derived from the rapid development of cloud applications, showing the development and application characteristics of the Internet of Things, prompting changes in the industrial ecology and development process.

From 3D printing, cloud computing, the Internet of Things, big data, sharing economy to VR, AR, and artificial intelligence, everything needs software to be realized. With the prevalence of smart technology and the rise of mobile payment, financial technology (Fintech) and the blockchain economy have gradually changed lives. Blockchain technology is one of the potential technologies of the fourth wave of the industrial revolution in the future and is a leader in various industries. , Is actively trying to develop global cross-domain (cross-domain, cross-domain) value transfer applications to create a global value network ecosystem. The decentralization of blockchain technology and the inability to tamper with data are increasingly considered to be likely to subvert humanity The foundation of transactions for thousands of years, which can be used for asset protection and tracking, is the foundation for establishing a digital trust enterprise. Blockchain technology also provides an opportunity for enterprises to transform. With blockchain, companies can establish greater trust and transparency in certification, recruitment, business transactions, and the security, sharing, and use of data. Therefore, the application of blockchain Imagination space and development potential is huge. Its applications can be seen in various industries from the financial field to the Internet of Things, cloud computing, and even medical, manufacturing, and retail. Digital transformation is also the primary and necessary execution goal of all industries.

The future is the era of the Internet of Things (IoT) and artificial intelligence (AIOT), especially in the era of cloud and AI artificial intelligence, with relatively low investment costs. With the advancement of 5G and AIOT technologies, smart technologies and applications will accelerate the integration of cloud and information security technologies, The future is full of business opportunities; because software is the foundation to support the transformation of hardware, and the integration of software and hardware in the information and communications industry will become a trend in the future, whether it is high-tech or traditional industry upgrades, the software is required, and the only way to actively promote the integration of software and hardware. Only by guiding the innovation of the software industry, combining the hardware industry, taking advantage of existing advantages, and cultivating emerging talents, can the industry grow.

Published: Sep 24, 2021 Source :tpex

  • Global
  • Cloud Technology
  • Software Service
  • IT Industry

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