Software Pulse

Business Strategy for Software Executives

January 2 , 2007

M.R. Rangaswami

Big Questions for 2007

The outlook for the coming year in the software industry will depend on resolving several key issues. Here is a review of the latest thinking on key topics.

By M.R. Rangaswami, Sand Hill Group

If 2006 was a year of transition, 2007 will be a year of advancement.

The software industry is on new footing and is poised for significant moves in 2007. New technologies - such as software as a service (SaaS)  and services-oriented architecture (SOA) - have become a well-integrated part of life for both vendors and buyers. Open source and Enterprise 2.0 models have not yet materialized as solid business models but may do so in 2007.

The software vendor landscape continues to evolve rapidly. M&A has become a way of life. The offshore services firms play an ever larger role. And venture capitalists continue to fund new crops of innovative companies to keep everyone excited and moving forward.

Here is a look at the most significant questions facing the software industry in 2007 and a review of the latest thinking on how they may be answered. These outcomes will determine the rate of progress in the software business during the coming year.


CIO Predictions for 2007

Leading-edge CIOs, Toby Redshaw of Motorola and Dave Watson of Kaiser, give us their take on the enterprise software market in 2006 and make some interesting predictions for 2007 in this candid conversation with Sand Hill Group’s MR Rangaswami. Click here to download to the latest podcast from

McKinsey's "Trends to Watch "

Macroeconomic factors, environmental and social issues, and business and industry developments will all profoundly shape the corporate landscape in the coming years. Find out which trends corporate executives need to watch in the coming years in this article from The McKinsey Quarterly.

Enterprise 2.0 Takes Shape in 2007

A look at the forecasts for corporate IT shows that Web 2.0 technologies will play a key role in the year ahead. Read which three trends point to a bigger future for Web 2.0 in this post to the Blog on Enteprise 2.0 from Serendipity Technologies.

Publish Your Perspectives!

The Blog wants your opinions. Send your thoughts on the enterprise software industry to and we’ll publish them in our blog.

Free Summary Report from e2006 Conference

Last month, more than 200 software CEOs, investors and professionals gathered in Pebble Beach, Calif. for the ninth-annual Enterprise 2006 conference. The result? Tremendous insight on the current and future potential of the software industry. Read the Sand Hill Group/McKinsey & Co. report which summarizes the conference, available free at

Don’t Miss: The Elusive Art of Postmerger Leadership

Mergers that appear to be successful in the short term often destroy value later on. By concentrating on five issues, CEOs and top teams can increase the odds of a genuinely happy ending.  Read more in this article from The McKinsey Quarterly.

Poll: Software Story of 2007?

What will be the story that epitomizes software business in 2007?   
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Parting Thought

“Success consists of going from failure to failure without loss of enthusiasm.”
–Winston Churchill

Courtesy of Malcolm Kusher, The Kushner Group