Business Strategy for Software Executives

April 10, 2006

Erik Keller

7 Laws for the
New Software Landscape

Vendors must rethink their products and marketing to succeed in the next era of software business.

Ray Lane, Kleiner Perkins Caufield Byers

CA used to run a great advertisement. It showed a businessman sitting behind a desk with a cardboard model of a software salesman standing on the other side, “How much software do you want to buy today?” “Great!” came the answer before the businessman could respond.

That’s the way it used to be – but those days are long gone, never to return. Today’s software makers face a changing landscape of customer priorities, business models and revolutionary technologies. Vendors that don’t innovate and adapt will disappear (see my SandHill.com oped from January, The Innovate/Dominate Imperative.)

The next-generation of software will power the “Inter” Personal Enterprise^SM. It is a tremendous opportunity for everyone in the ecosystem – from startups to megavendors to service providers to investors. But all players must recognize that there is a new set of laws which will determine the products and marketing methods which will succeed in the next era.

Re-live the Best of Software 2006

Last week, the software industry’s best and brightest gathered at the Santa Clara Convention Center for Software 2006. Now you can see the many highlights from the event at SandHill.com. Over the next few weeks, watch for video of key speakers and slides from popular presenters. Visitors can download the Software 2006 Industry Report and the CIO Insight Report from McKinsey & Co. and Sand Hill Group. Also check out the fast-growth companies who participated in the Software Showcase. Visit www.software2006.com for all this – and visit each week for more new conference content.

Perspectives on Software 2006

Dozens of press, analysts and bloggers attended Software 2006 and shared their views with their readers. Read perspectives from Vinnie Mirchandani, Jeff Nolan, Sadagopan and more in the SandHill.com Blog on Software 2006.

The Software World’s “Flattners”

Thomas L. Friedman’s bestselling book, The World is Flat has changed the way many businesspeople view the world. Ismael Ghalimi, founder and CEO of Intalio, shares his perspectives on how Friedman’s “Flattners” relate to the software world in this week’s entry to the SandHill.com Blog on New Era, New Thinking.

Europe 101 for ISVs

With all the talk of BRIC, Europe can sometimes become an afterthought. Yet by 2007, Europe will have 450 million people and 25 percent of the global economy. Colin Imrie of EU Solutions explains how the European landscape is shifting and suggests software vendors take a closer look at the region in a new SandHill.com Blog, Global Expansion.

Get Must-Read Software News

Don’t miss SandHill.com’s weekly news summary. Every Friday, editors compile the most important software news of the week and deliver readers a quick capsule of the week’s developments. Read this week’s news summary: Party Time: Software 2006, LinuxWorld and other software shows provided a stage for the industry to deliver important announcements and share ideas.

5 Software Company Best Practices:
Webinar This Wed. April 12

NetSuite is hosting a best practices webinar this Wed. April 12 at 10:00 a.m. Pacific. Click here to find out more and register. Don’t forget to promote your event on the SandHill.com Events page. Simply visit the Community page, log in, and click on ‘Want to Post an Event?’

SIIA Software Strategy Summit

SIIA Software Strategy Summit, May 15-16, 2006, San Francisco. Geoffrey Moore, Ann Winblad, Tien Tzuo and other industry influencers headline the Software & Information Industry Association’s Software Strategy Summit, where you’ll learn how to leverage changes in the industry brought on by SaaS, Open Source, Offshoring, and Security. Save $400 with Early-Bird registration by April 16. Find out more and register now.

Poll: Buzzword of Software 2006?

Ecosystem. Innovation. Saas. What do you think was the most frequently used buzzword of Software 2006?
Take our Pulse Poll >>

Last week, SandHill.com readers gave their opinions about whether Microsoft’s delay of the release of Office and Vista was a good move.
Give us your opinion and see the results >>

More at SandHill.com:

Read the most important enterprise software industry news of the week >>

Monitor the latest software venture capital deals >>

Size up last week's software M&A deals >>

See who's made it to the top in our list of recent software executive appointments >>

Send us your feedback on this newsletter and the SandHill.com site.

Parting Thoughts from Software 2006

“I’ve been in this industry for the past 20 years and the biggest changes I’ve seen have been in the past 2 to 3 years.”
–Dave DeWalt, EMC Software

“The one thing you can say about our Software conference is that we’re consistent: it has rained every year.”
–M.R. Rangaswami, Sand Hill Group

“I think innovation is still crucial. Others say it doesn’t matter. If you believe them, get out of the business.”
–Ray Lane, Kleiner Perkins Caufield Byers

“In making a change, the only thing you can plan on will be more change. The only constant is the evolution.”
–Dan’l Lewin, Microsoft

“The good thing about being a pundit is that you get to say a whole lot but you never have to do anything.”
–Dennis Kneale, Forbes

“The heart of the ecosystem is innovation.”
–C.K. Prahalad, University of Michigan

“Offshoring is a very difficult thing to do. If someone tells you it is easy, they’ve either not done it or they’re trying to sell you something.”
–Gordon Brooks, Symphony Services

“The innovation that creates your business can kill your business when it becomes successful. The challenge is to move from innovation to leadership and maintain leadership.”
–Mark Bregman, Symantec

“We’re doing more with our IT budget today than we were three years ago with 50 percent more money.”
–Toby Redshaw, Motorola

“It is hard to fight free.”
–Bruce Richardson, AMR Research

7 Laws for the New Software Landscape