 industries for the secondary software industry: the automation industry in the 1970s, the electronics industry in the 1980s, and the telecommunication industry in the 1990s. At the moment, e.g., the automotive and to some extent the aerospace industries are the centre of attention for booming secondary software businesses. P. Tyrväinen Department of Computer Science and IS, University of Jyväskylä, P.O. Box 35, 40014 Jyväskylä, Finland e-mail: Pasi.Tyrvainen@jyu.fr P. Tyrväinen and O. Mazhelis (eds.), Vertical Software Industry Evolution, Contributions to Management Science, DOI 10.1007/978-3-7908-2352-3_2, C Springer-Verlag Berlin Heidelberg 2009 P. Tyrväinen Role of Vertical Software Industries in Global Software Business In the early years of the twenty-first century, the primary software industry has been a global business with over 600 billion USD annual revenues, out of which about 200 billion USD came from software products, and over 400 billion USD from services (see Table 1). This means that roughly one-third of the revenue was produced by sales of licenses and two-thirds with IT services. Together, these two represent slightly less than a third of the total ICT market. According to EITO (EITO 2004) figures of the software market, out of the 200 billion euros spent on software products annually, roughly one-half is spent on applications, one-third on software infrastructure software, and less than one-fifth on development tools. Furthermore, out of the applications, the software intended for some vertical market amounts to almost a half of the spending, the same as ERP software and other horizontal software, while less than a tenth of software products were sold to private consumers (Colecchia et al. 2002). Industry specific figures show also that software product purchases of the financial industry amount to three times the volume of the consumer market sales. The share of the private consumer market is also extremely small as compared to the over 400 billion euros software service market. These global