eng Science and Education Publishing American Journal of Systems and Software 2372-7071 2015-02-09 3 1 20 23 10.12691/ajss-3-1-3 AJSS2015313 article Erfan Khaksar erfan1375@gmail.com 1 Alireza Khaksar 2 Iran University of Science and Technology, Student of Computer Engineering Department, Hengam Street, Resalat Square, Narmak, Tehran, Iran Islamic Azad University, Department of Computer Engineering Department, Information technology-Karaj, Iran The aim of this paper is introduction software as an industry and study of its position in the country. Then examines the current state of software industry in Iran and finally suggested ways to improve its position. The global market for software without having new technology, new methods and software, trained workforce and innovation is not possible. The current problems of the software industry in Iran are studied in four section: demand, capital, human resources and technology. The use of free and open source software has been the venom for the software industry in Iran. In Iran it is wrongly thought that the idea of open source is equal to unexposed the code of program. http://pubs.sciepub.com/ajss/3/1/3/ajss-3-1-3.pdf software industry problems Iran