The software market has been undergoing fundamental change in recent years as virtualization, digitization, cloud, mobile and the Internet of Things (IoT) become the dominant methods of providing applications to users. These changes affect the way software companies of all types approach digital business. In most commercially available software application and infrastructure segments, there exists on premises and cloud-delivered product versions. More recently, in response to IoT, "new" software providers have emerged from the manufacturing sector seeking opportunities for monetization beyond the initial sale of hardware through software control. As a result, providers are seeking growth from every possible avenue within their client base, as well as driving development to expand into new markets.

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Gartner Disruption in Software Business Models Creates New Opportunities for Monetization, Laurie F. Wurster and Robert P. Anderson, 17 February 2017

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Gartner Research Report: Disruption in Software Business Models Creates New Opportunities for Monetization