Computer Software
Even though it's only a few decades old, by now the computer software
industry has a much-storied past. We've all heard the tales of
iconoclastic young entrepreneurs who started companies in their garages and
went on to become among the most rich and powerful businesspeople in the
world. Indeed, names like Bill Gates and Steve Jobs are better known in
many circles than the names of the latest pop music stars.
Today, programming's adventurous and maverick past is still alive; all
over Silicon Valley, as well as in other tech hot spots like Boston and
Austin, visionary software developers are trying to come up with the next
"killer app."
Computer software products accomplish discrete tasks and are sold as
complete packages. Categories include applications, such as word
processors and Web browsers; operating systems, such as Windows and Linux;
and utilities.
Most software purchases are made by businesses seeking better tools to
manage the complexities of running operations, record keeping, and
controlling the flow of money in and out of an enterprise. It's not
always the quality of the code that determines the most successful
software, but how well that software meets an actual business need.
Probably the quickest way to talk yourself out of a job in this segment is
to make the technology seem more important than the end user.
Marketing is critical to the success of any software product, partly
because there are so many companies competing in the software market and
partly because computers are still new to a lot of people and business
processes. In fact, in many companies that produce software, the marketing
department calls the shots.
At the other end of the totem pole, technical writers are employed at most
computer software companies to write user documentation, either as manuals
or, increasingly, as online help. The industry also employs—in descending
order of technical expertise—software testers, customer service reps, sales
personnel, and staff for the usual array of business functions, from HR to
accounting.
Multiplying Platforms
In the old days, software developers had to develop products for just a few
different types of devices: PCs, servers, supercomputers, and the like—all
of them variations on the computer. These days, with each passing year
there are more varied types of devices that contain computer chips and need
software to tell them how to operate—everything from in-car global
positioning systems (GPS), to cell phones that allow users to play video
games, to personal digital assistants (PDAs) that can send and receive
email, to "smart" household appliances. This increasing variety
means a need for more and more new software programs. Meanwhile, the
growing use of wireless networking technologies means an even greater
variety of software types. The result of all this: Plenty of work for good
software developers.
Shipping Jobs Overseas
Dampening the jobs picture a bit is the trend among software developers to
outsource work to cheaper labor overseas—to India, for instance, which has
a large population of educated, tech-savvy folks willing to work at a
fraction of what passes for an acceptable salary in the United States.
In general, most exported tech jobs have been at the lower, more grunt
work-focused levels, though there’s an increasing trend towards sending
more skilled tech jobs overseas. Still, at least for the time being,
if you’re good at what you do, the explosion in software development means
software folks should continue to have plenty of job opportunities here in
the States.
Software as Service
In the really old days, software was sold in a box, which the buyer would
take home (or to his or her office) and install on a computer. More
recently, software consumers have been able to forgo the trip to the store
and download the software they want directly to their computer systems.
Today, more and more, software is being sold as a service; in other words,
the software is hosted on the software company’s server, and accessed via
the Internet by the user, who pays a periodic subscription fee for that
access. Software companies of all kinds are experimenting with this model;
indeed, these days this new model is even being used with such software as
word processing and spreadsheet programs. One of its advantages is that
improvements can be made to existing software programs on an ongoing basis;
if there’s a bug in the program, you can fix it now—today—rather than
having to wait until your next official release to give users the benefit
of the improvement.
Open Source
Linux system software, the centerpiece of the open-source movement (which
champions free software for all and welcomes and encourages developer
contributions to the software), is finally making a splash in the business
world. More companies, such as Credit Suisse First Boston and Merrill
Lynch, are seeing the benefits of not having to pay for software and
upgrades and beginning to adopt Linux environments. What's more, many
organizations and even countries feel Linux adoption is a way to curb
Microsoft’s monopolistic power. Computer makers such as Dell and
Hewlett-Packard are responding by shipping PCs and servers loaded with
Linux. And big business-software providers such as BEA Systems, SAP, and
Veritas are making products that run on Linux.
Meanwhile, the use of other types of open-source software is growing. The
Firefox browser, for instance, which is an alternative to
proprietary-software browsers like Internet Explorer and Safari, is being
downloaded and used by Web surfers with increasing regularity.
Gaming
Video games now take in more of Americans' money than movies on the big
screen, which are themselves less products of photography and more shifting
digital displays rendered with extremely powerful animation software. Video
game giant Electronic Arts had revenue in excess of $3 billion in 2005, and
lots of other players in this space are making a pretty penny. Meanwhile,
sales of professional animation software, which can cost thousands of
dollars, continue to climb. And the growth in demand for gaming software
for non-computer platforms (such as cell phones) is giving a further boost
to this sector. Creative types who want to apply their talents to make
games can find plenty of opportunities with companies making software meant
to entertain.
The computer software market is most commonly segmented according to the
type of work a product does. A few of the major market segments are listed
below, along with the names of a few companies that are active in each.
System Software
Microsoft Windows is by far the dominant example in this category—but not
the only one. Apple's Mac OS X is still alive and well, while
Linux is gaining a reputation as a reliable alternative in business
settings. Red Hat has actually made a business out of packaging and
providing support for a version of Linux, which itself is available free on
the Internet.
Productivity
Productivity includes word processing, spreadsheets, presentations,
database management, graphic design, and other applications that help
people do their jobs. Key players: Adobe (Photoshop, Illustrator,
InDesign), Microsoft (Word, PowerPoint, Excel), Autodesk (computer-aided
design applications).
Enterprise
The term denotes the large and expensive software packages sold by the
likes of Oracle, SAP, and IBM that enable companies to organize the complex
flow of materials, payments, and data necessary for the vast cast of global
operations that keep the modern corporation working, as well as less
expensive niche software packages sold by smaller, niche players in the
enterprise software space.
Education
Educational software helps your kids learn to read, teaches you geography
or a foreign language, stimulates logical thinking, and so on. This
category also comprises children's educational games, the so-far
slow-to-catch-on electronic-book industry, teaching resources, and music
instruction. Key players: Disney, Microsoft, Scholastic.
Gaming
A highly competitive and extremely broad market segment, this includes
role-playing software, auto and flight simulation, sports, strategy games
such as chess, and children's games. Key players: Electronic Arts,
Activision, Take-Two, THQ. Also, note that there are many small, thriving
studios that use the bigger players for distribution and marketing, as well
as big-name individual designers who will work for game companies on a
project-by-project basis.
Don’t count on the high salaries that were typical of the industry in the
late 1990s. Now that software development can be outsourced to many
politically stable, English-proficient countries with advanced
communications infrastructures, the expanded supply of technically skilled
(and low-cost) workers has blunted demand. Still, don’t underestimate the
power of the local. It’s hard to efficiently collaborate with workers many
thousands of miles away; many software projects—especially those with tight
deadlines, rapidly changing requirements, and applications specific to
American regulations and culture—will stay in this country. Take heart from
the Bureau of Labor Statistics, which predicts that occupations in the
computer software industry will be one of the fastest growing between 2004
and 2014.
Much of the activity in computer software is happening in Silicon Valley,
but you also might check out opportunities in other high-tech regions
including Boston, Austin, Minneapolis, New York City, Denver, Dallas,
Atlanta, Boca Raton, and the Research Triangle region of North Carolina.
Successful software businesses are of course built on more than technical
talent. Sales, marketing, and customer service provide many jobs for those
who prefer thinking and talking about software to actually writing it. On
the technical side, high-level software architecture skills are likely to
become more valuable as the nuts and bolts of software projects are
outsourced overseas.
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The Right Stuff
Consumer software attracts young and energetic people. Software company
employees are quick to point out that they feel inspired and challenged by
the intelligence and acumen of their peers. Also, there is a strong team
ethic that infuses many software companies, with employees sharing a common
passion for making a great product.
Your Opinion Counts
Because software development is less capital-intensive than many types of
manufacturing, it's more likely that members of the development team
will have a hand in making decisions about what goes into the product.
Software workers enjoy the sense that they can have a direct impact on
product features and cost. And often there is lots of room for creativity
in determining how to position a product in the market.
Too Much of a Good Thing
Even software workers who are passionate about their work note that burnout
is a real problem. As one industry veteran put it, "Companies feel
that every extra day a product is in development is a day of lost market
share." So 60- to 80-hour weeks can be the norm. And the short
development cycles mean that you are almost always looking ahead to the
next deadline—which may only be a few weeks or months away.
No Terra Firma
Some of the most exciting aspects of the industry—its dynamism and fast
pace—also mean that there is very little stability in the field. Company
priorities (and prosperity) change quickly, and this year's big hit
doesn't guarantee a company's long-term independence. (Brøderbund
was bought by The Learning Company despite the runaway success of Myst;
Maxis, of SimCity fame, suffered the same fate with Electronic Arts.) Some
attribute this to the fickle market; critics claim that software companies,
big and small, often lack clear decision-making hierarchies and road maps
for getting things done. (Some small companies, on the other hand, actually
set their sights on being acquired; it can be a part of their business
strategy from the outset.)
Watch Out for Gender Bias
The high-tech industry in general clearly needs to work on attracting a
better gender balance to its ranks. Not that there hasn't been
progress. In software companies' marketing and technical-support areas,
women and men are present in about equal numbers. But engineers are almost
always men, and women often note that the industry can still seem somewhat
male-dominated.
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Top 20 Computer Software Companies, by 2005 Revenue
|
|
Rank
|
Company
|
Revenue ($M)
|
1-Year Change (%)
|
Employees
|
|
1
|
Microsoft Corp.
|
39,788
|
8.0
|
61,000
|
|
2
|
Oracle Corp.
|
11,799
|
16.2
|
60,198
|
|
3
|
SAP AG
|
10,075
|
–1.0
|
32,205
|
|
4
|
Automatic Data Processing, Inc.
|
8,078
|
9.2
|
44,000
|
|
5
|
Avaya Inc.
|
4,902
|
20.5
|
19,100
|
|
6
|
Sega Sammy Holdings Inc.
|
4,795
|
n/a
|
5,407
|
|
7
|
Fiserv Inc.
|
4,060
|
8.8
|
22,007
|
|
8
|
SunGard Data Systems, Inc.
|
4,000
|
12.5
|
13,000
|
|
9
|
CA Inc.
|
3,530
|
7.8
|
15,300
|
|
10
|
Electronic Arts Inc.
|
3,129
|
5.8
|
6,100
|
|
11
|
Symantec Corp.
|
2,583
|
38.1
|
6,500
|
|
12
|
Convergys Corp.
|
2,582
|
3.8
|
66,300
|
|
13
|
DST Systems, Inc.
|
2,515
|
3.6
|
11,000
|
|
14
|
Konami Corp.
|
2,428
|
–6.2
|
4,547
|
|
15
|
KLA-Tencor Corp.
|
2,085
|
39.3
|
5,500
|
|
16
|
Intuit Inc.
|
2,038
|
9.1
|
7,000
|
|
17
|
Adobe Systems Inc.
|
1,966
|
18.0
|
4,587
|
|
18
|
VeriSign, Inc.
|
1,610
|
18.0
|
4,076
|
|
19
|
SAS Institute Inc.
|
1,530*
|
14.2*
|
9,528*
|
|
20
|
Siebel Systems, Inc.
|
1,429
|
6.7
|
5,032*
|
*2004 numbers.
Sources: Hoover's; WetFeet analysis.
|
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Software Engineer
Software engineers are programmers who write the code that makes the
software products run. Tasks include implementing and debugging the
software. Senior software engineers do some of these same things but also
make higher-level design decisions. Software companies typically fill this
position with individuals who have a computer science degree or equivalent
programming experience. Salary range: $45,000 to $105,000.
Product Specialist
As a product specialist you master a specific area within the software
development process and attend to relevant projects. For instance, you
might take on the area of customer service and help develop customer
service procedures for titles published by your company. This is a common
starting point for recent college grads. Salary range: $40,000 to $75,000.
Graphic Artist
Some of the happiest people in this business are the visual designers. The
tools and techniques are constantly changing and improving—and though you
have to report to the same project or product manager the programmers do,
you're often given much more leeway and room for creativity. Customers
also understand and pay a lot of attention to the graphics, and if they
like yours, you have an enviable career ahead of you. It's not fine
art, but many artists would agree it's the most interesting turn
commercial design has taken in decades. Salary range: $35,000 to $65,000.
Designer or Content Engineer
This role has several titles and in the past was often shared by the
project manager, senior programmers, and others on the development team.
But now there is often one person in charge of the user experience and
logic flow—how all the text, graphics, sound, and other information fit
together. Like a magazine with a very good art director, well-designed
content feels natural, inviting, and easily understandable. Software
companies are increasingly willing to spend time and money finding just the
right writer/artist/interface expert with significant technical experience
for this slot. Salary range: $50,000 to $95,000.
Technical Support Specialist
Tech-support people staff the phones and answer questions from consumers
who recently purchased the product. If you don't have a tech
background, this is a great way to break into the industry, and recent
college grads from various backgrounds (and with excellent people skills)
can do very well in this area of the company. Salary range: $30,000 to
$85,000.
Technical Writer
If you have a strong writing background and an aptitude for technology,
this could be the job for you. Computer science and economics majors with a
flair for writing might also take a look at this position. Technical
writers produce materials that support the software products, such as
product documentation and marketing white papers. Salary range: $35,000 to
$85,000.
Product Manager or Project Manager
Product managers take the software title from conception through
development to the finished product. You define the features that the
product will encompass and work with teams of designers, engineers,
writers, and quality-assurance testers. Product managers typically hold
MBAs or have extensive experience in the software field. Salary range:
$65,000 to $95,000.
Software Architect or Designer
This senior-level position requires someone with a comprehensive grasp of
software design and an understanding of industry trends. Software
architects make key decisions about how to put together products and
typically oversee a vast array of titles and a large staff. Salary range:
$90,000 to $125,000.
As you embark on a job search in the software industry, you should decide
first whether you prefer smaller companies or larger industry players.
Small companies offer far less in the way of organizational structure and
office systems, and you'll often be fending for yourself on the
administrative front. You'll almost certainly have a smaller salary,
but if you're lucky, a potentially much more generous stock package.
At larger software companies, your job will likely be more narrowly
defined, but you'll also have a much greater sense of security that
your company will be around in a year or two. If you need some degree of
structure in your work, the larger firm is the better bet, though this also
means a more settled and very possibly less dynamic work environment.
Whatever your preference, here are some tips on landing a job:
-
If you're applying for a technical position, you will almost
certainly be asked to write some code as part of your interview.
You'll also impress your interviewer if you can discuss previous
programming you've done—especially if it relates to the type of
application you'll likely be working on.
-
Whether you're applying for a technical or a business position, you
should know the products of the company to which you're applying.
It's even better if you can offer suggestions about how you'd
improve the product from a user's standpoint, and how that would give
the product a stronger position against the competing products on the
market.
-
Be enthusiastic and energetic. Remember, this is an industry in which 10-
to 12-hour days are the norm, and product launches kick off the next
product-development cycle. Your interviewers know that their success on
the job depends on dedicated work by all members of the team.