Software Pulse

Business Strategy for Software Executives

June 26, 2006

Chris Dowse

Software’s Secret:
Higher Usage = Higher Revenue

By advising customers on effective user adoption strategies and practices, software vendors can achieve a competitive advantage.

By Chris Dowse, Neochange

It’s no surprise that customers are demanding more from their software vendors these days. Although many analysts say the software industry is in a state of maturity, 50 percent of software functionality paid for and licensed by organizations is not actually used, according to a recent study by the Butler Group. The underutilization of IT equates to trillions of dollars-worth of lost productivity and business performance.

This waste is not going unnoticed by customers. Many are questioning the very fundamentals of the traditional enterprise software model. License fees, maintenance costs and the requirement to upgrade to new functionality are all being scrutinized by customers who are demanding accountability from their vendors.

This demand is making software companies think differently about how they deploy their solutions and deliver results.  Understanding the critical components of how users are adopting and using software products is key for vendors  to stay competitive in this changing environment.


Offshoring Webinar This Week!

Software CEOs and VPs are invited to join the Sand Hill Group and Persistent Systems for a webinar, ìTrends, Strategies and Best Practices in Outsourced Product Development.î The online event will be held at 11:00 a.m. Pacific on June 29. Sand Hill Groupís M.R. Rangaswami will provide actionable data on product development trends and Sheng Liang of Seven Networks will share the most important takeaways from his offshoring experience. Click here to find out more and register for this informative event.

More Data on Enterprise Software Death

Erik Keller Erik Kellerís oped, ìThe Death of Packaged Apps?î spurred much debate about the trend of enterprises moving to build their own software rather than buy it. In this weekís post to his Blog, Erik updates his build-vs.-buy case with the latest data and thinking.

How to Spot an On-Demand Fake

With the popularity of the on-demand and software-as-a-service (SaaS) models, it is no wonder that many companies are trying to re-position themselves into the space. Christopher Cabrera of Xactly offers his perspective on the characteristics that separate the players from the pretenders in this week’s post to the Blog post on On-Demand/SaaS Reality.

Publish Your Perspective!

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

Is Your Company the “Next Big Thing”?

Enterprise 2006 is just around the corner! The ninth annual invitation-only gathering of software CEOs and investors will take place in Pebble Beach, Calif. on October 8-10, 2006. One of the event’s most popular sessions allows a select-group of fast-growth software CEOs to present why their company will be the next Microsoft, SAP or Oracle. Click here to nominate your company for this prestigious opportunity and visit the Enterprise 2006 site to find out more about the conference. Act now - the deadline for nominations is July 15!

Oracle Thrives

A big quarter may be a good sign for the whole industry; plus upheaval at Novell, Ellison’s missing donation and Microsoft’s “forgotten monopoly.” Read these stories and more news of the week in the weekly news summary.

Poll: Big Buys Paying Off?

Oracle’s quarterly results show significant application revenue growth. Do you think their $19 billion in acquisitions is starting to pay off?
Take our Pulse Poll >>

Last week, readers gave their opinions on the impact of Bill Gates’ departure on Microsoft’s future.
Share your opinion and see the results >>

More at readies partner tool.
Read the most important enterprise software industry news of the week >>

Dataupia receives $15 million.
Monitor the latest software venture capital deals >>

EMC buys two.
Size up last week's software M&A deals >>

Datalogic names Scott Raskin as CEO.
See who's made it to the top in our list of recent software executive appointments >>

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Parting Thought

“The reason so little is done, is generally because so little is attempted.”
–Samuel Smiles

Courtesy of Malcolm Kusher, The Kushner Group