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Windows 95 to Boost US Software Revenues by $2 Billion in 1996

Strategic Insights

— 1 min read

Fueled by pent-up demand for a better Windows and aggressive marketing tactics from Microsoft, the introduction of Windows 95 late in 1995 is expected to cause a significant boost in US software revenues in 1996. Research from International Data Corp. indicates that the launch of Windows 95 and related applications will result in over 35 million new software packages hitting the US market by the end of 1996. This rapid influx of new software will put a strain on training and support services, with vendor revenues expected to increase significantly.

Key Takeaways:

  • The introduction of Windows 95 is expected to cause a $2 billion boost in US software revenues in 1996.
  • More than 35 million new software packages will hit the US market between now and the end of 1996, fueled by Windows 95 and related applications.
  • Demand for training will increase significantly, with vendor revenues expected to grow from $130 million in 1995 to almost $800 million in 1998.
  • Support services will also see a boost, with vendor revenues expected to grow from $105 million in 1995 to over $670 million by 1998.
  • The success of plug-and-play features in Windows 95 may ultimately help with the migration to the new operating system, but will not alleviate the short-term training and support burden.
  • The ease of use of Windows 95 and the complexity of 32-bit applications will play a significant role in determining the amount of support and training required by users.

Statistics:

  • $2 billion: expected boost in US software revenues in 1996 due to Windows 95.
  • 35 million: number of new software packages expected to hit the US market between now and the end of 1996.
  • $130 million: vendor revenues generated from demand for training in US in 1995.
  • $800 million: expected vendor revenues for training in US by 1998.
  • $105 million: vendor revenues generated from support services in US in 1995.
  • $670 million: expected vendor revenues for support services in US by 1998.
  • 5%: five percent share of the overall infotech training and education market expected to be generated by Win95-related training in 1998.

Sources:

  • International Data Corp.
  • Ellen Hersh, IDC analyst
  • John Gantz, senior vice president for personal systems and workgroup applications at IDC
  • IDC report, "Windows 95: A Tax or Windfall for Training and Support?" (available by contacting Linda Rich at 800-343-4389)

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