The analytics company’s latest report - COVID-19 Impact on Application Software - reveals that the continued fallout from the pandemic will undermine companies’ and industries’ propensity to buy, delay product launches, and transform the way software applications are developed and written.
David Bicknell, Principal Analyst in the Thematic Research Team at GlobalData, said, “Application software companies face a sterile year, with latest product releases struggling to escape COVID-19’s cloying grasp”.
“The spring software product launch season will be less dynamic than usual because of user and market uncertainty. Only the collaboration tools market epitomised by Slack and Zoom will generate any fizz.”
According to Bicknell, “even Microsoft, which reported strong third-quarter results this week and ranks second on the thematic screen of GlobalData’s application software sector scorecard, has warned of a transactional licensing slowdown from small to medium-sized businesses”.
“It is still early days and the true economic impact of COVID-19 has yet to hit software companies but, when it does, they will protect their profitability by slowing hiring and reducing discretionary spending,” Bicknell concluded.