Gartner on pricing pressure

In a research note, Gartner predicted what most people already knew: proprietary software is going to face serious pricing pressure from a range of different software trends. Specifically, Gartner identified seven trends putting pricing pressure on software business models:

These include business process outsourcing; software as a service (SaaS); low-cost development environments, such as China and India, combined with modular architectures and service-oriented architectures; the emergence of third-party software maintenance and support; growing interest in open source; the rise of Chinese software companies; and the expansion of the Brazilian, Chinese and Indian markets.

I wonder how many executives took a poop after reading Gartner's research note ... Not too many, you would hope.

Anyway, it looks like Drupal is in good shape: it is open source software with a modular architecture that lends itself to delivering web services. Also, Drupal 6 is all about reaching out to more people; I'm confident that Drupal 6's localization (l10n) and internationalization (i18n) improvements will help us get more traction in Brazil, China and India. Plus, with Drupal companies like Raincity Studios opening offices in China, there have been talks about organizing a Chinese Drupal conference.