Software Pulse

Business Strategy for Software Executives

March 19, 2007

M. R. Rangaswami

Powered by Innovation

The software industry has entered a new spectrum of innovation that will create the foundation for value in the next era.

By M.R. Rangaswami, Sand Hill Group

When you think of “innovation,” what companies come to mind?

Apple might be near the top of the list. Nike. Google. Procter & Gamble. Southwest Airlines, perhaps. But would any enterprise software companies appear?

A few years ago, I would have wagered against it. Enterprise software companies have not historically been thought of as innovative. Although their products were very often unique and built to deliver new functionality to businesses, the companies did not innovate quickly and their business models were intransigent.

Today, everything has changed. Software’s concept of innovation has broadened far beyond that of a novel application. Today, innovation in business models, delivery methods, marketing, development and customer care is the rule for software success – not the exception.

The software industry is powered by innovation. The next generation of successful software vendors will think about innovation holistically and will work with their customers to foster innovation throughout their business.


Learn Innovation from Motorola’s CEO

Ed Zander, the chairman and CEO of Motorola, will be one of the visionary keynote speakers at Software 2007. Don’t miss what Ed says his innovation-driven company has in store for the coming year. Register now to attend the conference May 8-9 in Santa Clara, Calif. and qualify for a special rate which enables you to bring 3 colleagues at no extra cost!

C-Level Execs: Growth Now More Important than Cost Control

A new study finds 70 percent of top executives surveyed by Saugatuck Technology say innovation is critical to ensuring their company’s long-term survival. Bill McNee shares several key findings from this study of business strategies and priorities, and explains why a new growth-driven, investment-led business climate may be on the horizon. Read this summary in the Blog on innovation.

What Do Open Source Customers Really Want?

Red Hat recently announced their intent to support open source applications. Bill Marshall of rPath says this is a poor indication of the state of the software industry. Read why Billy says more support is not the answer in this week’s post to the Blog on open source.

Publish Your Perspective!

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

New Podcast: India Ascending’s M.R. Rangaswami and globe-trotting industry veteran, Bruce Richardson of AMR Research discuss and debate their recent trip to India and the Nasscom conference. Click here to listen and gain on-the-ground insight about the latest changes in India.

DON’T MISS: Making CEOs into Public Leaders: A McKinsey & Co. Survey

US business executives say they should play a much greater role in shaping debate about sociopolitical issues and leading efforts to effect change. Read the latest survey from McKinsey & Co. in this article from The McKinsey Quarterly.

New: Real-time Software M&A and VC Feeds has partnered with VentureDeal to deliver the latest deal news to its readers. Visit the Finance page to link to the latest software-related venture capital investments and software M&A deals, including details on the dealsí participants and terms.

News Update: Cloud on the Horizon

The ěnext big thingî is the ěcloudî; Steve Balmer and John Doerr get personal, Cisco moves out, and the real cause of security lapses. Read these stories and more software news of the week in the latest Software News Summary.

Poll: Is Software Innovative?

Compared to other industries, how innovative is the software industry?
Take our Pulse Poll >>

Last week, readers gave their opinions on whether software vendor consolidation leads to product mediocrity.
Give us your opinion and see the results >>

More at

Can DeWalt reinvent McAfee?
Read the most important enterprise software industry news of the week >>

FreedomPay receives $6 million.
Monitor the latest software venture capital deals >>

CRM vendor Dominion buys Resite.
Size up last week's software M&A deals >>

Rodney Dabagian named CFO of Enkata.
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

"Ignore everybody. The more original your idea is, the less good advice other people will be able to give you."
–Hugh Macleod

Courtesy of Malcolm Kusher, The Kushner Group