Business Strategy for Software Executives
June 19, 2006
The Case for Back-Shoring
As more software development moves offshore, one vendor achieves impressive results by moving work back to America.
By Michael Fields, KANA Software
I am not against offshoring, outsourcing or globalization. These strategies have significant value in business today.
Yet when I took the reins at KANA last year, I found a company with tremendous assets but many operational challenges. One significant challenge for KANA involved its development operation in India. After a thorough analysis, I chose to end the relationship with our vendor and bring development back to the U.S.
The decision we made to “back-shore” our development was the best move for KANA. Other small to mid-size software companies may be similarly constrained by their offshoring strategy – and they may not have taken the time recently to reevaluate the value of their initiatives.
Open Source Apps – Later, Not Sooner
With all the buzz about the big potential of enterprise open source, Matt Miller of Walden VC urges patience. Even though vendors may make a strong case for the benefits of open source apps, Matt argues that today’s enterprises are far too far down the road with traditional apps to change course any time soon. Read more in this week’s post to his SandHill.com Blog, The Picky VC.
The Next Big Thing – Price Management?
SAP seems to think so. Erik Keller takes a closer look at how its partnership with price management vendor, Vendavo, demonstrates the new array of partnerships small providers need to create in order to get traction in their category. Read more in Erik’s SandHill.com Blog, The Software Critic.
SOA = Internet-Level Impact
There’s little doubt that services-oriented architecture (SOA) has the potential to dramatically impact software vendor positioning over the next decade. Judith Hurwitz of Hurwitz & Associates lays forth the likely progression of events brought on by SOA, including the industrialization of software, in this week’s post to the SandHill.com Blog on SOA.
Publish Your Perspective!
The SandHill.com Blog wants your opinions. Send your thoughts on the enterprise software industry to email@example.com and we’ll publish them in our blog.
Eyes on Ozzie
Bill Gates says he’ll step down and CTO Ray Ozzie steps up. The meaning of this and another key Microsoft move, plus Oracle pre-announces big, IBM loses it “top dog” spot and a new “hot spot” for tech employment. Read these stories and more news of the week in the SandHill.com weekly news summary.
Poll: A New Era at Microsoft?
What will Bill Gate’s departure mean to Microsoft’s future?
Last week, SandHill.com readers gave their opinions on the significance of IBM’s $6 billion Indian investment.
More at SandHill.com:
10 booming U.S. cities for technology ń outside The Valley.
SOA Software receives $11 million.Monitor the latest software venture capital deals >>
Reuters buys Application Networks for $41 million.
Clear Technology names Brian Cohen as president and CEO.
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“I can't understand why people are frightened of new ideas. I'm frightened of old ones.” – John Cage
Courtesy of Malcolm Kusher, The Kushner Group
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