Business Strategy for Software Executives
December 12, 2005
Launching a Software Pricing Revolution
Sellers must improve price-benefit alignment in order in order to grow software industry sales.
By Erik Keller, Wapiti
In the enterprise software market there were so many truisms: Hire a large sales force of ex-Oracle or -SAP sales sharks. Get a top notch R&D staff in the Valley. Get a CEO with a long track record. Simply connect the dots and watch the cash roll in.
These software startup SOPs have been supplemented over the past few years by more frugal funding mechanisms as well as having a larger portion of R&D and support services located in low-cost, high-quality regions including India, China, Romania - and Indiana. For some, open-source has become an interesting option.
While these changes are helping companies survive these slow-growth times, they have done little to fundamentally address an important issue that will continue to plague the software industry: the relative cost-benefit imbalance of any given solution. A dramatic shift in software companies' approach to pricing is needed in order to drive industry growth to the next level.
Good News About Web Services
The new Service Component Assemblies (SCA) and Service Data Objects (SDO) proposals delivered by IBM, BEA, Oracle, SAP and others fills some critical standards gaps according to Tony Baer of onStrategies in this week's SandHill.com Blog on Web services.
Share your insight on the software business. Email firstname.lastname@example.org with your submissions to the SandHill.com Blog.
Beating the Odds in Market Entry
Overthinking can ruin a new market launch. A new analysis piece from The McKinsey Quarterly outlines the cognitive biases that undermine market entry decisions. Read it through SandHill.com.
Read more software-related stories from The McKinsey Quarterly on our Insight page.
Poll: Megavendor Workplaces?
Which large software company is the best all-around employer?
Last week, SandHill.com visitors speculated about which vertical market will be the hottest in 2006.
More at SandHill.com:
Lessons in how to succeed at offshoring.
Ketera Technologies receives $13 million.
TIBCO Software buys Velosel.
Alan Fudge named CEO of GuardianEdge Technologies.
Send us your feedback on this newsletter and the SandHill.com site.
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Courtesy of Malcolm Kusher, The Kushner Group
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