Software Pulse

Business Strategy for Software Executives

May 2, 2005

The New Building Blocks for Success

Ken Berryman

Finding profitability and longevity in today's software market environment will require focusing on a new set of principles.

By Ken Berryman, Principal, McKinsey and Company

In the software industry, we have long operated on a series of assumptions about our market: growth is inevitable; innovation leads to success; revenue drives valuation; horizontal solutions will provide the most compelling returns; and, old economy mindsets do not apply to software.

It's time to throw those assumptions out the window and move on.

Re-live the Best of Software 2005

Last week, 1,500 of the software industry's best and brightest gathered at the Santa Clara Convention Center for Software 2005. Now you can see the many highlights from the event at Online this week: slides from popular presenters and the full conference report (in collaboration with McKinsey & Co.). Also see information on the hottest companies that presented at our Funding Forum and the news stories generated at the event. And check back each week for more new content from Software 2005.

Two Cents from Software 2005

Software 2005 represented a wide variety of perspectives on the critical issues facing the software industry today. Whether you missed the entire conference or didn't miss a session, read summaries of Software 2005 insight and implications in this week's blog. Email what you learned at the conference to

The Most Urgent "Building Block"?

As Ken Berryman outlines in today's oped, enterprise vendors must focus on a new set of building blocks for success to remain relevant in the next-generation software industry. Which of the five building blocks do you think is the most urgent? Take this week's Pulse Poll.

Last week, 41 percent of poll respondents said services-oriented architectures would be the technology that most impacted the software business in 2005. Open source placed second with 26 percent of respondents.

More at

Read the enterprise software industry news of the week >>

Monitor the latest software venture capital deals >>

Scan the list of last week's software M&As >>

See who's made it to the top in our list of recent software executive appointments >>

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Parting Thought

"There is never enough time, unless you're serving it."
— Malcolm Forbes

Courtesy of Malcolm Kusher, The Kushner Group


Sun Microsystems

Horn Group provides communications services to technology companies at every stage of growth.


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