Software Pulse

Business Strategy for Software Executives

September 8, 2008

Avinoam Nowogrodski

How to Expand into the U.S. Market

The CEO of an Israeli software explains strategies and best-practice techniques for successfully establishing a foreign software company in the U.S.

By Avinoam Nowogrodski, Clarizen

We launched Clarizen, now a global provider of on-demand project management software, in Israel in 2005. In December 2006, we secured $7 million in first-round funding from Benchmark Capital and Carmel Ventures. The two General Partners of both firms also joined Clarizen’s Board of Directors. From the beginning, the plan was to go global to expand our growth options. With Benchmark Capital, we determined we should establish a presence as soon as possible in North America — our largest target market.

Obviously, there are cultural and language differences, as well as other variations from country to country as to how business should be conducted. These differences are risks that can become hindrances to success in establishing a company in a foreign market within the necessary timeline and budget. So the decision to go international must be made carefully. Yet, it need not be intimidating. 

Having set the strategic direction for our company, we forged ahead and successfully established our North American headquarters in Menlo Park, California, after having been in business in Israel for 1.5 years. The following points represent the best-practice techniques we employed to reduce the time and effort to bring a company into the U.S. market and mitigate the risks of navigating cultural business variations.


Register Now for the Cloud Summit:
Oct. 14, 2008 at the Computer History Museum

Software executives and investors are invited to a must-attend forum on the opportunities surrounding cloud computing. The Cloud Summit, a TechWeb event hosted by Sand Hill Group's M.R. Rangaswami, will take place on Oct. 14, 2008 at the Computer History Museum in the Silicon Valley.

New business, new technology ecosystems and new strategies will be explored alongside emerging market leaders during this one-day event. Focused tracks and sessions include: Defining the Cloud, Doing Business in The Cloud, Best Practices in Marketing and Selling and Exploring the Cloud in Action.

Be a part of this inaugural event. Attendance will be capped at 350 executives so register now!

Chrome Adds Cost, Complexity to the Cloud

Bruce Guptill The debut of Google’s new browser comes on the heels of Firefox 3 and just ahead of Internet Explorer 8. Bruce Guptill of Saugatuck Technologies explains why the debut of Chrome highlights the challenge SaaS and other cloud vendors will have ensuring compatibility with multiple browsers. Read his analysis in this post to the Blog on cloud computing.

Crowdsourcing Solves the Software Talent Puzzle

A big part of software quality involves overcoming the challenges associated with large products and many developers. Chris Parish of TopCoder explains how “crowdsourcing” can result in more efficient development and higher quality software in this post to the Blog on R&D.

Publish Your Perspective! wants your opinions. Send your thoughts on the enterprise software industry to editor, Maryann Jones Thompson ( and have your opinions published on our site.

DON'T MISS: Rapidly Transform Your Salesforce

Taking a phased “university approach” to change helped one company transform its sales force—successfully—in 6 months rather than the usual 12 to 24. Read more about this approach in this article from The McKinsey Quarterly.

News Update: Getting Attention

Google plays in Microsoft's yard; plus Big Blue's Information Agenda, and Ellison's on shaky ground in the courtroom. Read these stories and more software news of the week in the latest Software News Summary.

Poll: The Next Software Leaders?

Will the next set of leading vendors come from the U.S. or overseas?
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Last week, readers gave us their opinion on when SaaS would make real inroads in the enterprise.
Give us your opinion and see the results >>

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Size up last week’s software M&A deals >>

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See who’s made it to the top in our list of recent software executive appointments.

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Parting Thought

The best way to get a project done faster is to start sooner.”
— Jim Highsmith

Courtesy of Malcolm Kusher, The Kushner Group



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