Business Strategy for Software Executives
February 4 , 2008
The New Integration Mandate
Software companies must include integration as part of their development budgets or risk losing sales opportunities – and interest from potential acquirers
By Ashok Santhanam, Bristlecone
Consolidation is rampant in the software industry. The product “stacks” at the major enterprise software vendors grow taller and wider by the week, even as emerging vendors with new models work to steal share from an increasingly demanding and impatient set of corporate CIOs.
The need for enterprise software applications and infrastructure products to work together seamlessly is greater than ever before. Yet software companies continue to place integration capabilities on the back burner during a new product release, preferring instead to work on adding new speeds and feeds.
Customers and investors will not stand for this “development in a bubble” much longer. The new integration mandate dictates that vendors must incorporate integration and certification as a strategic part of their development process or risk becoming sidelined in the new, interoperable enterprise software ecosystem.
A Long-Haul Business Model
Too often, software companies operate under a technology-centric business model. But when technology changes, these business models can become obsolete. Bruce LaFetra of Rubicon Consulting explains the strengths of a customer relationship-based business model in this post to the SandHill.com Blog on marketing.
What Happened to VMware?
Last week, VMware announced great numbers but they missed Wall Street expectations and the stock took a tumble. Charlie Williams and Bruce Guptill of Saugatuck Technology take a closer look at what impact VMware’s quarter might have on the software market 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.
The Leadership-Innovation Gap
McKinsey research reveals a wide gap between the aspirations of executives to innovate and their ability to execute. Organizational structures and processes are not the solution. Read how to bridge the gap in this article from The McKinsey Quarterly.
News Update: Pounce!
Microsoft attacks Yahoo; plus, Salesforce.com execs leave, patents and open source take center stage and grassroots-level IT users impact enterprise spending. Read these stories and more software news of the week in the latest SandHill.com Software News Summary.
Poll: A MicroHoo Future?
What will happen if Microsoft gets Yahoo?
Last week, readers speculated on whether software companies can succeed with a hybrid business model.
More at SandHill.com:
RightNow’s performance proves SaaS isn’t perfect.
Widgetbox receives $8 million.
SpringSource Global acquires Covalent Technologies.
Brian Storms was named president and CEO of APX.
Send us your feedback on this newsletter and the SandHill.com site.
“Processes don't do work, people do”
Courtesy of Malcolm Kusher, The Kushner Group
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