Computer Software and Services Trends

--Downsizing: Distributed computing with client/server solutions
is most common in corporate IT, in conjunction with keeping the
economical functions of the mainframe environment, preferably
with identical GUIs and operation procedures. Major suppliers
catering to this trend are Novell; NSC Group (Legacy Downsizing);
Downsizing Systems; Suite Software; Fenger + Graetzer.

--Client/Server Solutions: This trend combines equipment from
different manufacturers, performance classes, and applications in
a network with the server managing data transaction, and the
client handling the presentation and local application
processing. As a result of the trend toward distributed
networking, standard software products must be able to run on
various platforms and in a variety of network configurations.
Thus, suppliers of utilities/tools software can create new
features and functions to allow the end-user to utilize the
expanded application areas. Major suppliers to this segment are:
Oracle; Novell; ACI; dc soft; CAI; CA; WIN!; Wilken; Onmis
Software.

-- Outsourcing: Outsourcing of software and IT services is
becoming more and more popular in medium-sized and even smaller
firms who engage specialist teams for specialist IT tasks such as
web server operation and maintenance. This trend should allow
U.S. software suppliers to find profitable niches, although these
clients usually prefer the "outsource" to be "in-country. " Major
outsourcing software suppliers in Germany are: AC Service; IIS
Infotech; IBM; SBS; SAP; Debis, and J.D. Edwards.

--Integrated Standard Software: Competition in the standard
packaged software segment has become harder over the past two to
three years. As a result, prices have decidedly dropped and this
pressure is expected to continue. Thus, the trend is away from
standard software and toward a component software product; still,
it does remain a receptive market for standard software
products which are priced competitively, especially business
application products and enterprise resource planning (ERP)
systems. Important suppliers in this segment are: SAP; Baan;
SSA; JDE; JBA; CA; PeopleSoft; Oracle.

--Implementation of MIS (Management Information Systems): A large
number of corporations have meanwhile installed data warehouses.
In order to fully achieve a competitive advantage, experts
recommend a combination of data warehousing with "data mining,"
the latest in "intelligent" data management, which combines
statistical with artificial intelligence functions to detect
patterns and trends in an otherwise fully automated data
analysis. Data mining tools can perform classifications and
segmentation resulting in large cost-savings and are used in
determining future customer behavior or structuring a complex
target group. MIS processes encompass everything from statistical
methods to expert systems to fuzzy logic to neuro-networks. Major
suppliers to this trend are: Angoss; Datamind; IBM; ISL; Isoft;
NeoVista; Pilot; SAS; Silicon Graphics; SPSS; Syllogic; Thinking
Machines; Informix; NCR; Oracle; and Xsys. Major local suppliers
are: Bissantz; Kueppers and Co.; Business Objects; and Cognos.

--Business Reengineering: Software supporting process-oriented
taskings such as identifying core operations; intensifying
customer orientation; improving the information flow; shortening
processing time; precisely allocating processing costs; and
reducing delivery times and amount of stored goods, will continue
to meet high demand in. Suppliers of respective software
tools are: Aeneis; Aris; Bonapart; BPWin; ERWin; Logichain;
Moogo; Proplan; and Sycat.