Business Strategy for Software Executives

April 30, 2007

New Rules for Software VC

A look back at the history of tech investing reveals whatís driving VC strategy and startup funding today.

By William H. Janeway, Warburg Pincus

Venture capitalists have been investing in software for some 35 years now. Both the investment returns that VCs have made from their software investments and the fate of the software start-ups themselves have always been dependent on the state of the stock market and, most particularly, on the state of the market for IPOs.

In the years since the “Great Bubble” of the late 1990s, market conditions have changed substantially. Software startups must change their expectations and their operations accordingly.

1 Week to Software 2007!
Register four executives now for $1,695

The industry’s most exciting software business event will take place next week: Software 2007. On May 8 and 9, an estimated 2,000 software CEOs, VPs, investors and professionals will gather in Santa Clara, Calif. to receive the latest strategic business insight from an all-star lineup of speakers and panels.

The key to Software 2007’s success is its in-depth coverage of critical software business issues. Best practices will be shared at the more than 50 breakout sessions on key topics. The Innovation Showcase will put the industry’s top 25 innovators on stage to share their solutions. The 2.0 Pavilion will demonstrate the latest in Web 2.0, Enterprise 2.0 and Office 2.0 offerings. And the most innovative software and services providers from all around the world will be on display in the International Pavilion.

Is RSS Ready for the Enterprise?

Now that companies are adopting RSS to communicate with customers, the next step will be to use the technology to push enterprise data to employees. Yuval Tarsi of WorkLight takes a closer look at the business requirements which need to be addressed in order for RSS to tackle the enterprise in this week’s SandHill.com Blog on Enterprise 2.0.

Does China Really Care About IP?

Intellectual property rights (IPR) are all the rage in China's official circles according to David Scott Lewis of Startech Global. What is China doing so differently on the IPR front? What is China's biggest impediment to IPR protection? And what can American ISVs do to best protect themselves? Read David's latest brief in this week's post to his SandHill.com Blog, "Letter from China."

Your Hip-Pocket Consultant

The new e-book, “Tips from the Trenches,” compiles the insights of more than 100 technology consultants into one streamlined document. Experts share best practices in a variety of areas, such as strategy, operations, sales, marketing, delivery, offshoring and organizational structure. Read an excerpt, “Six Tenets for Services Organization Leadership” and link to download the free e-book in this post to the SandHill.com Blog on Service & Support best practices.

Sales Tips from the Trenches

Sometimes it is easy to forget that the bottom line for startup success is, well, the bottom line. Justin Floyd of smartfundit.com takes a break from the field to share tips for software sales success. Read his tales from the trenches in this week’s SandHill.com Blog on sales best practices.

Publish Your Perspective!

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

Visit the New 2.0 Pavilion at Software 2007

Whether “Web”,“Enterprise,” or “Office,” the “2.0” movement represents both the next-generation of software solutions and the spirit of innovation in the industry. The 2.0 Pavilion at Software 2007 showcases emerging vendors in the “2.0” space. Software 2007 attendees can visit the vendor booths and also discuss trends during the 2.0 Pavilion Breakout Sessions. Register now for Software 2007!

News Update: Big Brother is Watching

DOJ goes after tech giants, the SEC keeps its eye on Apple and the Senate rejects SOX changes; plus, big buys in open source, Microsoft’s quarterly net nears $5 billion and VC investment grows 8 percent. Read these stories and more software news of the week in the latest SandHill.com Software News Summary.

Poll: DOJ vs. HP, Sun, Accenture?

Will the Department of Justice’s kickback suit against three tech leaders cause changes to the structure of IT marketing alliances? Give us your two cents.
Take our Pulse Poll >>

Last week, readers gave their opinions on the biggest threat facing the enterprise software industry.
Give us your opinion and see the results >>

The CEO as CIO

Sometimes information technology is so crucial to the success of a company that the CEO oversees IT strategy. One such company is India's top private bank, ICICI. Meet CEO K. V. Kamath and hear why in this article from The McKinsey Quarterly.

New Podcast: Meet Software’s Top 25 Innovators

The Innovation Showcase at Software 2007 will display the industry’s most compelling and innovative vendors. Sand Hill Group’s M.R. Rangaswami introduces and discusses the industry’s top 25 innovators with Bruce Fram, the producer of the program in this new podcast from SandHill.com. Click here to listen.

More at SandHill.com:

Sun mulls open source dive.
Read the most important enterprise software industry news of the week >>

SOA runtime governance vendor, AmberPoint, receives $9 million.
Monitor the latest software venture capital deals >>

Business Objects pays $300 million for Cartesis.
Size up last week's software M&A deals >>

Adobe names Rob Tarkoff as SVP of Corporate Development.
See whoís 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 Thought

“I try not to break the rules but merely to test their elasticity.”
–Bill Veeck

Courtesy of Malcolm Kusher, The Kushner Group