All software markets are finite.  At some point there comes a time where, for all practical purposes, the marketplace is completely saturated--all potential customers have a version of the software product, or have made a decision on which product to buy.  Once this happens the industry goes through a convulsive consolidation phase.  It happens every time, in every industry, and to the best of companies.

This has happened in banking software, retail software, database software, HR software, EDI software, you name it.  But if you read EHR industry commentary, it would appear that the EHR software business will go on with double-digit growth forever.  However, once any software market’s growth projections begin to decline there’s a rush to the exit, typically manifesting as “cathartic” consolidation.

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