Is Enterprise Software Doomed?

The old ways of the software business are dying but there is still time for even old-fashioned vendors to reposition themselves and compete in the open-source era.

By Guy Smith, Silicon Strategies Marketing

Like the old man slung over John Cleese's shoulder in Monty Python's Holy Grail, the enterprise software industry today is yelling, "I'm not dead yet!"

The reply is, "Well, you'll be stone dead in a moment."

The rumors of the death of enterprise software are premature, but a near-fatal diagnosis is not. Fundamental shifts in the competitive landscape are, at the very least, changing R&D practices, pricing, marketing, promotions, and buyer attitudes. The software industry that we all grew up with is indeed dead.

By swallowing a dose of reality and re-tooling their positioning, product and sales strategies now, most enterprise software vendors will live long enough to compete in the open-source era.

News Update: Toward the Horizon

Guess which sector draws more venture capital than any other? The focus shifts to the future this week with competitors partnering on SOA, competitors fighting over SaaS, IBM changing its pricing model - again, and Microsoft dinging Firefox users. Read these stories and more software news of the week in the SandHill.com weekly news summary.

In Search of a New Tech Bubble

More and more media outlets are starting to talk about a new bubble in technology investing. Matt Miller of WaldenVC disagrees. In the latest post to his SandHill.com Blog, The Picky VC, he searches the latest valuation and investment trends and finds little evidence of a new bubble.

Mercury Lives Happily Ever After

Mercury Interactive has had a rough year ñ but its acquisition by HP may be a fairy tale ending to a long and sordid story of life as an enterprise software vendor. Tony Baer of onStrategies thinks the match is a good one. Read why in this week's post to the SandHill.com Blog on merger mania.

With Partners Like TheseÖ

Microsoft's vertical market strategy took a new turn this week with the acquisition of health IT software, Azyxxi. The move is troublesome, according to Erik Keller of Wapiti LLC. As major enterprise vendors move into niche markets, the delicate ecosystem is disrupted. Erik says vendors must examine their partnerships carefully ñ or face the consequences.

Publish Your Perspective!

The SandHill.com Blog wants your opinions. Send your thoughts on the enterprise software industry to editor@sandhill.com and weíll publish them in our blog.

Hear Podcasts from Software Industry Luminaries

This week, the keynote address by legendary business thinker, Dr. C.K. Prahalad, joins the list of Software 2006 speaker podcasts. Visit the Software 2006 podcast page and hear from the likes of Ray Lane, David DeWalt of EMC and Thomas Kurian of Oracle.

Donít Miss Dr. CK Prahalad on Innovation

The worldís no. 3 management guru talks to SandHill.com and describes what software vendors need to do to evolve their offerings for the next era of business. Read CKís oped ìInnovation Through Co-Creationî on SandHill.com.

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