Software Pulse

Business Strategy for Software Executives

July 23, 2007

Don Klaiss

In Search of an Open Source Business Model

The former head of Oracle apps and new CEO of an open source ERP vendor shares his tips for developing a successful open source business model.

By Don Klaiss, Compiere

Open source is a disruptive business model that continues to gain traction with customers. But any open source CEO will tell you that there is no well-worn road to success. Finding the right open source business model takes a combination of research, analysis, experimentation, community relations - and lots of hard work.

Since taking the CEO reins earlier this year, I have worked with the Compiere team to restructure and expand the product offerings, reposition the company, launch a new Web site, rebuild the partner network, hire a world-class development and support team, open a European office – and we’re just getting started.

Based on our first-hand experience, I’ve created a list of considerations for emerging companies aiming to find the right open source business model.


Looking for Promising SaaS Startups

The SIIA OnDemand conference takes place in San Jose from November 7-9, 2007. The organizers are looking for several early-stage, on-demand software vendors to present their businesses to the more than 400 industry executives, analysts and press members who will be in attendance. Click here to find out more and submit an application. The deadline for entry is Aug. 31.

Intel’s Bet on the Future OS: VMware

Billy Marshall As VMware’s IPO value was announced, so was the news that Intel Capital would make a $218 million pre-IPO investment in the company. Billy Marshall of rPath says Intel is looking to leverage its X86 distribution chain and change the future of software. Read how in this week’s post to the Blog on virtualization.

10 Steps to Product/Market Fit

It’s the most important lesson for software startups according to Marc Andreesen. Glenn Gow of Crimson Consulting heartily agrees. Read his ten tips for achieving Product/Market Fit (PMF) in this week’s post to the Blog on software marketing.

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DON’T MISS: How Businesses are Using Web 2.0

By and large, executives are satisfied with their previous investments in Internet technology, and most are investing in trends that promote automation and networking online. Read more results from this McKinsey Global survey in this article from The McKinsey Quarterly.

News Update: Earnings Respect

SAP and IBM post strong software quarters; plus, Google wants into wireless, Microsoft takes on and EMC plans to blanket China. Read these stories and more software news of the week in the latest Software News Summary.

Poll: Microsoft vs.

How will Microsoft’s recent decision to lower its SaaS pricing impact its battle for market share with
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Last week, readers gave their opinions as to whether America would remain tech’s leading nation.
Give us your opinion and see the results >>

More at

SuccessFactors files for an IPO.
Read the most important enterprise software industry news of the week >>

Star Analytics receives $3.5 million.
Monitor the latest software venture capital deals >>

HP to pay $1.6 billion for Opsware.
Size up last week's software M&A deals >>

Deborah Eastman named CMO of Satmetrix.
See who’s made it to the top in our list of recent software executive appointments.

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Parting Thought

"Never attribute to a conspiracy that which can be explained by incompetence."
 Judge Larry Silberman

Courtesy of Malcolm Kusher, The Kushner Group