Business Strategy for Software Executives
December 4, 2006
Cracking the Government Market
The U.S. public sector spends more than $100 billion on IT every year. Software vendors must have C-level commitment in order to gain leadership in this lucrative sector government market.
By Patrick Arnone, LGES
Why is it that software companies have so much trouble gaining leadership in the single largest vertical market in the U.S.?
The U.S. government market encompasses IT budgets for software, hardware, telecommunications and services that will exceed $100 billon this fiscal year. The figure roughly breaks down into $60 billion in federal spending and $40 million spent by state and local governments. And technology spending in these public sector markets is growing at a rate of more than five percent per year.
Unlocking the secrets of government market success takes homework – and seasoned, top-level leadership. But software vendors who devise the right corporate and field strategies, and execute them properly over time can expect to generate 15 to 20 percent of their North American revenue from government business.
You Call That a Platform?
Everyone from NetSuite to IBM has made a recent announcement about their “platform.” Erik Keller says vendors should beware. Claims of technical superiority and easy-and-cheap development sound eerily similar to claims about past platforms from former vendors. Read Erik’s analysis of platform proliferation in this week’s post to his SandHill.com Blog, The Software Critic.
The Science of Hiring Salespeople
Everyone knows that “A”-level salespeople will produce the best results for your company. But Stephen D’Angelo of Spring Lake Technologies cautions that “As” in one company can be “non-As” in another. Stephen describes tactics for finding the right salespeople and how to use predictive technology to improve sales in this week’s post to the SandHill.com Blog on Sales & Marketing.
More Earthshaking in the Land of Open Source
In the past month, Novell and Microsoft have linked up and Sun has delivered on Open Java. Guy Smith of Silicon Strategies Marketing takes a closer look at what is scary and what is exciting in these developments in this week’s post to the SandHill.com Blog on open source.
Publish Your Perspectives!
The SandHill.com Blog wants your opinions. Send your thoughts on the enterprise software industry to firstname.lastname@example.org and we’ll publish them in our blog.
Don’t Miss: From Global Trend to Corporate Strategy
The rapid speed of global change can overwhelm even the most astute executives. New research shows that companies who recognize and align with emerging business trends realize the greatest growth and profits. Learn more about how to take advantage of global trends in this article from The McKinsey Quarterly.
Poll: Microsoft’s Novell Intentions?
What does Microsoft really want out of its open source alliance with Novell?
Last week, readers gave their opinions as to whether the software industry is better positioned to take advantage of global business trends.
More at SandHill.com:
Microsoft has OS patents; Linux has none.
Optaros receives $13 million.
Sterling Commerce buys Comergent.
Everest Software names Edwin Miller as president and CEO.
Send us your feedback on this newsletter and the SandHill.com site.
“It is much easier to suggest solutions when you don't know too much about the problem.”
Courtesy of Malcolm Kusher, The Kushner Group
THIS WEEK'S SPONSOR
Aztec Software is a software and technology services company which specializes in software product development services that accelerate the creation of software products, reduce time to market and help make schedules predictable in order to better manage resources, predict costs, and reduce market and technology risks.
Software Pulse is a publication of SandHill.com, the online resource for software business strategy.
To unsubscribe, see the bottom of this email.
Send us your feedback,
SandHill.com is published by Sand Hill Group, which provides investment and management advice to emerging leaders in the $600 billion enterprise software, services and solutions market. Sand Hill Group produces the Software and the Enterprise series of conferences for industry executives, and authors research reports on cutting-edge technology topics.