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Before we delve into the software selection process, we should understand a few things about the software industry that will help put the process in context.  If you have a good understanding of these characteristics, it will help you make better software decisions.

The primary characteristic is that software is a network industry which is different from many other industries such as food, stock markets and many manufactured goods.

A network industry depends on complementarities, compatibility and standards and gains benefits from externalities (network effects).

It is subject to switching costs and lock-in.  It benefits from economies of scale.