Strategy+Business has an article titled "The Coming Software Shakeup" here they highlight the trends in the software market and how they are expected to be moving forward....You can get the full article here, below are some notes i made from the same...

Consolidation:
* 2001 - 11 Companies - 90% DB Market
* 2006 - 6 Companies - 90% DB Market
* 2006 - 35 Companies - 70% Ent.App Market
* 2000 - 120 Companies - 70% Ent.App Market
* Ent App - Tier A Options - Oracle/SAP Only

Leads to:
* Reduction in discounting (80% to 50%)
* Long run - a profound shift in how software is delivered and in the types of programs companies implement.
* Med Sized companies effected
* Will accentuate move towards subscription based pricing
* Currently 25% software license sold on subscription basis, In 4 Years its expected to grow to 50%
* SaaS - Growing trend.
* Increase outsourcing in Smaller companies
* CIOs demand architectural flexibility from Vendors to minimize expense of adding and decomposing systems
* Data Centricity - transform the CIO from a manager of data into a provider of critical information to the business.
* Drive more cooperation among vendors
* Revival of CIO Consortiums

Summarized as "Software purchasers may indeed pay a price for consolidation. But in the end, consolidation could cost the large enterprise software suppliers the most. For a short-term gain in revenue, they may end up having to adjust to a new software landscape that emphasizes customer flexibility; more efficient delivery mechanisms; open standards; the rise of smaller, niche data-centric applications; and greater simplicity. Software purchasers who understand this and take advantage of the opportunity to leverage changing industry dynamics will have the most to gain."

Prashanth Rai