Market Map - First Draft

A market map shows an overall picture of the competitors in a market. It depicts the relative sizes of major submarkets, the extent to which each submarket is fragmented or consolidated, and the market shares of the key competitors within each segment.

The following market map shows the distribution of revenues of the 50 largest public software companies. This type of chart, called a marimekko, has the form of a rectangle whose total area represents the $150 billion of combined revenues of the top 50 public software companies. Each column of the chart represents a different submarket. The area of each smaller rectangle represents the revenue that a particular company earns from a particular submarket.



A few additional comments:

• This chart does not include the revenues from smaller software companies, nor from privately held companies, nor from other companies (such as HP, IBM, EDS, Accenture) who have significant software revenues but are classified in other categories by Google Finance. I expect to update the market map to include these revenues one submarket at a time after examining each submarket in more detail.



• This chart shows the latest full fiscal year published for each company as of December 2007, and so the list of companies is already a bit obsolete. Several of the companies on this chart have already been acquired, or are in the process of being acquired, by other competitors.



• Because this chart shows revenues, it will not display the unit market shares of open source / freeware competitors.



• All the data in the above chart was sourced from Google Finance and/or annual filings with the SEC (Form 10-K for US companies; Form 20-F for foreign companies with ADRs). Within the 10-K and 20-F forms, the relevant information is usually found in a footnote with a title like "Business Segment Reporting".