Software Pulse

Business Strategy for Software Executives

October 31, 2005

Erik Keller

Innovation: The Next New Thing

A look at recent software successes underscores the importance of both technological and business model innovation.

By Erik Keller, Wapiti

One of the sad states of today’s enterprise-application market is its assumed general malaise: growth is tracking toward GDP and rampant M&A activity makes certain entrepreneurial types muse, why bother? This defeatist attitude is counterbalanced by a seemingly Electric Kool-Aid-spiked enthusiasm toward the Web 2.0 and how this community will take over the world.

Unfortunately, these extremes are under- or over-the-top because they miss the central business secret of creating value: Innovation. Regardless of whether you reuse 30-year-old approaches or have an epiphany when you are out with your dog for a walk, innovation is really what our market is all about. And I’m not writing about some hot technology.


Discover New Tech-Enabled Service Opportunities

Mark your calendars for the Silicon Valley Indian Professionals Association (SIPA) annual event on Saturday, Nov. 12 in Cupertino, Calif. The one-day gathering will focus on the dramatic market shifts and opportunities created in the area of technology-enabled services.

Get an executive perspective when Sand Hill Group’s M.R. Rangaswami moderates a panel of four leading CEOs - Joe Kraus of Jotspot, Zach Nelson of Netsuite, Umang Gupta of Keynote Systems and John Roberts of Sugar CRM — speaking on software-as-a-service. Other topics to be covered include vertical/domain specific search and knowledge process outsourcing. Visit to register for the event.

Product Innovation Not Enough

Antony Awaida of StartLeap expands on software innovation by taking a look at the role marketing and other business model changes play in today’s successful companies. Read Awaida’s advice on how to leverage these advances in this week’s post to the Blog on sales and marketing best practices.

Embracing Next Generation Architectures

S. Sadagopan of Satyam takes an in-depth look at why enterprise vendors need to aggressively adopt emerging architectures in this week’s post to the Blog on services-oriented architectures.

Share your insight on the software business. Email with your submissions to the Blog.

Poll: Salaries Rising?

A new study shows IT salaries will rise in 2006. Is this a good sign for IT industry growth next year?
Take our Pulse Poll >>

Last week, visitors speculated about the potential for unions to form in India’s technology industry.
Give your opinion and see the perspective of visitors >>

More at

Four VARs say goodbye to SAP.
Read the most important enterprise software industry news of the week >>

Aruba Networks receives $25 million.
Monitor the latest software venture capital deals >>

Neoware buys Maxspeed for $24 million.
Size up last week's software M&A deals >>

Bernard Fried named CEO of Siterra.
See who’s made it to the top in our list of recent software executive appointments >>

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Parting Thought

"Burnout happens, not because we're trying to solve problems, but because we're trying to solve the same problem over and over. "
— Susan Scott

Courtesy of Malcolm Kusher, The Kushner Group