Business Strategy for Software Executives
April 3, 2006
Software’s Dramatic Revolution
New technologies, models and a thriving ecosystem will be critical to future industry success.
By M.R. Rangaswami, Sand Hill Group
Let’s stop talking about the maturation of the software industry.
Every time I hear the press compare software to a mature industry like autos, I cringe. Sure, there are similarities. Both have experienced consolidation and slower revenue growth rates. But the similarities end there.
Software is driven by innovation. New technologies, new models, new companies - all enable the software industry to reinvent itself with stunning regularity.
Before angry auto industry experts email me, I recognize that innovation exists in the auto industry. But the fact remains that it is far harder for a truly “mature” industry to reinvent itself. When was the last time you saw an automaker experiment with a new sales model? Where are those alternative energy-powered vehicles we’ve been hearing about for 30 years?
The software industry is undergoing a quiet but dramatic revolution. The implications of this revolution will may be even more profound than in previous transitions. As Software 2006 opens today, software executives, investors, professionals and customers will gather to discuss and debate the current state of the industry and its future.
One thing is certain: It is time to start thinking differently about the software business.
Dispatches from Software 2006
Are you at the conference this week? Send us your views – the best speakers, the most interesting conversations, the subjects overlooked – and we’ll post them in our Software 2006 topic of the SandHill.com Blog.
Offshoring Around the World
S. Sadagopan of Satyam provides an excellent overview of Offshoring’s “Invisible Wave” in this week’s post to Offshoring Best Practices. And David Scott Lewis walks readers through the FAQs on sourcing and contracting options in China in this week’s post to the SandHill.com Blog on Doing Business in BRIC.
Beware of “Hamster-ware”
First there was hardware and software. Then firmware, vaporware, shelfware… Now David Taber of David Taber & Associates coins the term, “hamster-ware.” The term refers to software that is only a prop. Behind the scenes, people and manual transactions perform the real work. Taber explains the risks of hamster-ware in this week’s post to Sales & Marketing Best Practices.
The Week in Review: Congress Contemplates
From H-1B to "Net Neutrality," political leaders considered tech bills this week. Also McAfee wants to buy, BMC did buy and Checkpoint backed out of a buy. Read the latest SandHill.com News Summary – a new feature appearing online every Friday in which editors bring together the most important software news of the week.
Poll: 2006 Software Story of the Year?
Open source? SaaS? More mergers? What has been the software news story of the year so far in 2006.
Last week, SandHill.com readers gave their opinions about whether Microsoft’s delay of the release of Office and Vista was a good move.
More at SandHill.com:
Governments go online – without Windows.
I4 Commerce receives $27 million.
Vocollect buys Adherence Technologies.
M-Factor names Jeff McFadden as CEO.
Send us your feedback on this newsletter and the SandHill.com site.
"If you always think what you always thought, you'll always get what you always got." -- Gerald Haman
Courtesy of Malcolm Kusher, The Kushner Group
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