Business Strategy for Software Executives
March 10 , 2008
Winning with an Ad-Supported Model
The consumerization of the enterprise means software vendors can succeed with networked offerings focused on key markets. Here's how.
By Scott Abel and Jay Hallberg, Spiceworks
In the past, enterprise software companies have thrived with a variety of business models. We should know: We've worked for a lot of them.
So when we set out to develop a software product that would be supported by an advertising revenue model, several experts urged caution. However, we believed that the “consumerization of the enterprise” – corporate adoption of consumer-like services and business models - would accelerate during this decade and that it would start with small businesses.
Fast forward two years: Our product, the Spiceworks IT Desktop, has evolved to become what we call the “iTunes of IT” with a user base of 250,000, and we've added 50,000 new users in the past two months alone. But the secret to succeeding with a free ad-supported software business has to do with far more than just advertising.
Is Your Company Too Arrogant?
A brash, aggressive personality matches the actions of many software companies – but is it right for your company? Harry Max of Rubicon Consulting says few vendors can pull off the accomplishments and market domination needed to succeed with an arrogant image. Read whether your company is getting too full of itself in this post to the SandHill.com blog on software marketing.
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.
DON'T MISS: CEOs on Strategy and Social Issues
Business leaders are now more inclined to incorporate society's expectations into their core strategies but face many challenges when they do. Read the latest thinking on corporate social responsibility in this article from The McKinsey Quarterly.
News Update: Changing the Pace
A new target for Microsoft, a Google slap in the face, a $100 million carrot and a fedora model. Read these stories and more software news of the week in the latest SandHill.com Software News Summary.
Poll: Future of Ad-Supported Software?
Will the ad-supported software model take hold in the software industry?
Last week, readers forecasted the impact of the economic downturn on marketing in the software business.
More at SandHill.com:
Logitech chairman pooh-poohs Microsoft bid.
Healthcare platform provider, TriHealix received $7 million.
Microsoft bought the technology of U-Prove.
Yahoo named Rajeev Rastogi as VP & Head of the new lab in Bangalore, India.
Send us your feedback on this newsletter and the SandHill.com site.
“In a start-up company, you basically throw out all assumptions every three weeks.”
Courtesy of Malcolm Kusher, The Kushner Group
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