Smaller Vendors Can Still Provide Relevant Business Systems
Part Two: Market Impact
P.J. Jakovljevic - January 25, 2005

Market Impact

We expect the market for application software to further segregate into two tiers. The first group will be a limited number of very large vendors, while the second group will be a large number of small, highly focused vendors. The latter's business model will be focusing on a relatively small, tightly defined market with specific requirements that cannot be met with more generic products. These specialists, boutique, or niche vendors (whereby neither of these terms is meant in a derogatory manner) will compete by having in-depth product functions and intimate knowledge of their market place or by offering services (content or location wise) not available from the Big Few or large independent service providers...