On the face of it, there should be a great deal of money in the software tools business, but, surprisingly, the money really isn’t there for small businesses. This article will show that the ultimate cause of the deficiency is the fact that most of the large development tools are subsidized by the sales of Operating Systems and hardware. These subsidies have the effect of diminishing the profit potential of any pure software development tool vendor and thus remove the incentive to create.
Read the original:
Stunted Growth: Subsidies and Stagnation in the Software Tools Market By Steve Benz

