Business Strategy for Software Executives
May 27, 2008
The Global Transformation to On-Demand
Why the world is moving to subscriptions and what it means for businesses.
By Tien Tzuo, Zuora
It’s one thing to catch the wave of a new trend early. It’s another to be part of the team that started it all. In the summer of 1999, at the crest of the dot-com era, I was fortunate to be one of the first employees to join a company led by Marc Benioff that vowed to change the face of the software industry. That company was salesforce.com, one of the pioneers in the software-as-a-service (SaaS) movement. During my tenure as chief strategy and chief marketing officer, I helped evangelize the vision that we called “The End of Software.” This mantra was our conviction that software belonged on the Internet, not on a CD, and in that process it is transformed from a product that you buy to a service that you subscribe to.
Fast-forward almost a decade to 2008. The world now accepts saleforce.com’s premise as a core tenet. Software as we once knew it is not coming back and SaaS is here to stay.
But that is not the end of our story. I have now come to realize that this transformation has not been restricted to just our software industry. All around me, everywhere I look, in industry after industry – products are being transformed to services in front of our very own eyes.
Desktop Virtualization and You
Virtualization is changing the enterprise IT game for all types of IT. Sarah Friar of Goldman Sachs shares an analysis of the impact on software vendors in this post to the SandHill.com Blog on virtualization.
Publish Your Perspective!
SandHill.com wants your opinions. Send your thoughts on the enterprise software industry to SandHill.com editor, Maryann Jones Thompson (firstname.lastname@example.org) and have your opinions published on our site.
Communicating with the Right Investors
Executives spend too much time talking with investors who don’t matter. Read this article from The McKinsey Quarterly to find out how to identify those who do.
News Update: Open or Closed
Megavendors make overtures to the open source community; plus, Microsoft gets "egged", ODF faces credibility issues, open source is in the driver’s seat, and more software news of the week. Read these stories and more software news of the week in the latest SandHill.com Software News Summary.
Poll: The Subscription Transformation?
How will the transition from product to service impact the software industry?
Last week, readers speculated on the transition to service-based IT.
More at SandHill.com:
Cisco gets into open source in a big way.
Altierre received $8 million.
Versata bought government solutions provider Evolutionary Technologies.
Former Senior Vice President at Symphony Services, Nagi Prabhu, named CEO of Aragon Consulting Group.
Send us your feedback on this newsletter and the SandHill.com site.
“Your most unhappy customers are your greatest source of learning.”
Courtesy of Malcolm Kusher, The Kushner Group
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