In The News

Editorial: Investing in Vermont's software industry

The money -- a minuscule amount in the scheme of state spending --  helps a trade group that's been powered so far by members of the  volunteer board. It's worth giving a little help to an industry  that's a natural fit to Vermont's aspirations to grow the economy by  encouraging clean industries. This is a small expenditure with the potential for a much bigger payoff.

Here are the current numbers on Vermont's software industry provided by the alliance:

• There are more than 250 software firms in Vermont.
• These companies pay an average salary of $60,000 year.
• According to the 2002 Economic Census, the latest available, Vermont's software industry generated $350 million in sales and employed 2,700 people.
• Vermont's software companies see employment doubling in three to five years.

The alliance was started in 2004 as a way for software companies to network, share ideas, network and develop new business. It offers smaller firms opportunities for what it calls contract partnering, a way to work together on a project that might be too big for one company to handle. With the money the alliance is looking for an executive director. The job description includes developing programs that "enhance the viability and visibility of the state's software  industry."

The industry's obvious success model is IDX Systems. The South Burlington medical software company started by two St. Michael's College graduates grew to become a leader in their segment employing hundreds.

The local companies that are out there now include: Bluehouse Group; Dealer.com; The Data Farm; Renaissance Information Systems, Green Mountain Software, American Health Care Software; Empower Mobility; and Physician's Computer Co.

These companies range from a lone consultant to a firm with more than 100 employees. The overall membership includes those in the software field involved in product development, consulting, programming, project management, support, training, Web design and development and more.

Here's how the alliance puts in on its Web site: "These companies have chosen quality of life over big city life and the immediate resources which that implies, but yet they are still managing to grow at an encouraging rate." In terms of marketing the state to other businesses, a testimonial like that alone is worth the state's investment.