Software Pulse

Business Strategy for Software Executives

October 17, 2005

K.B. Chandrasekhar

Mainstreaming the On Demand Revolution

Software and services vendors must foster creation of an On Demand ecosystem in order for the model to realize its potential.

By K.B. Chandrasekhar, Jamcracker

On Demand Delivery is providing the greatest growth opportunity for software providers in this decade. For software providers to participate in the "sudden expansion" in this market they must focus on two critical areas:

  1. Build an On-Demand Ecosystem
  2. Fully leverage new channels

While there has been limited success to date, On Demand solutions account for only three to four percent of the market. While it is still an emerging market, I don’t anticipate "explosive growth" until it becomes easier for customers to easily deploy a comprehensive set of On Demand Services, not just a stand-alone point solution like Sales Force Automation.

Many of the successful Software-as-a-Service products are function specific, operating as "stovepipe" solutions. This leaves customers facing cumbersome integration and customization issues. Becoming part of an On Demand Infrastructure will make it easier for customers to consume your products in an integrated fashion, and it will greatly expand your market reach.


Discover New Tech-Enabled Service Opportunities

Mark your calendars for the Silicon Valley Indian Professionals Association (SIPA) annual event on Saturday, Nov. 12 in Cupertino, Calif. The one-day gathering will focus on the dramatic market shifts and opportunities created in the area of technology-enabled services.

Get an executive perspective when Sand Hill Group’s M.R. Rangaswami moderates a panel of four leading CEOs - Joe Krause of Jotspot, Zach Nelson of Netsuite, Umang Gupta of Keynote Systems and John Roberts of Sugar CRM — speaking on software-as-a-service. Other topics to be covered include vertical/domain specific search and knowledge process outsourcing. Visit to register for the event.

Avoiding the Traps of Conventional Sales

Jeff Thull of Prime Resource Group says many software salespeople lose deals because they treat the sales process too conventionally. Read more about these traps and how to avoid them in this week’s post to the Blog on sales and marketing best practices.

Don’t miss recent posts to other Blogs: The Impact of Merger Mania, New Era, New Thinking, and ISV Use of Open Source.

Share your insight on the software business. Email with your submissions to the Blog.

Software Events This Week

Check the Event Calendar for upcoming software industry gatherings. On the evening of Oct. 19, the VC Task Force’s Emerging Technology committee hosts "Sources of Innovation: Universities — Birth of the Next New Thing." On Oct. 20, MXL presents its next seminar "Mastering the Sales Pitch," as part of its Accelerated Sales School. And last week, the SoftSummit Conference presented the first annual Summit Awards, recognizing best practices in software value management.

To post your organization’s event, visit the community page, scroll down to the event calendar, click on ‘Want to post an event?’ log in and fill out the form. Email with any questions.

Poll: Big Future for App Exchange? CEO Marc Benioff made news this week promoting App Exchange, a marketplace for building and sharing Web services. How successful do you think this platform will be?
Take our Pulse Poll >>

Last week, visitors speculated about how long it will take for today’s venture-backed software startups to go from funding to acquisition.
Give your opinion and see the perspective of visitors >>

More at

Enterprise applications market to hit $65 billion by 2009.
Read the most important enterprise software industry news of the week >>

GlobalWare Solutions receives $10 million.
Monitor the latest software venture capital deals >>

BEA buys ConnecTerra, a producer of RFID middleware.
Size up last week's software M&A deals >>

CollabNet names Richard Murray as VP of Engineering.
See who’s made it to the top in our list of recent software executive appointments >>

Send us your feedback on this newsletter and the site.

Parting Thought

"A successful person is one who can lay a firm foundation with bricks that others throw at him or her."
— David Brinkley

Courtesy of Malcolm Kusher, The Kushner Group