20% of IT costs is software

Software now claims a fifth of the $960 billion the world spends annually on computer systems, up from one-tenth of a $464 billion pie in 1990, according to IDC, a market researcher. Hardware sales dropped from $460 billion five years ago to an estimated $365 billion this year as hardware suffered commoditization and ruthless price-cutting.

Software now claims a fifth of the $960 billion the world spends annually on computer systems, up from one-tenth of a $464 billion pie in 1990, according to IDC, a market researcher. Hardware sales dropped from $460 billion five years ago to an estimated $365 billion this year as hardware suffered commoditization and ruthless price-cutting.