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For the past 40 years, the techniques, processes and methods of software development have been dominated by supply-side issues, giving rise to a software industry oriente d towards developers rather than users. To achieve the levels of functionality, flexibility and time to market required by users, a radical shift is required in the development of software, with a more demand-centric view leading to software which will be delivered as a service within the framework of an open marketplace. Already, there are some signs that this approach is being adopted by industry but in a very limited way. I shall summarise research and a research method which has resulted in a long-term strategic view of software engineering innovation. Based on this foundation, I'll then describe more recent work, which has resulted in an innovative demand-side model for the future of software. I'll propose a service architecture in which components may be bound instantly, just at the time they are needed and then the binding may be discarded. A major benefit of this approach is that it leads to highly flexible and agile software, that should be able to meet rapidly changing business needs.