Software Pulse

Business Strategy for Software Executives

May 25, 2005

Software Finance: Outlook for the
Second Half of 2005

M.R. Rangaswami

An analysis of the latest data on software markets, M&A and venture capital finds the second half of 2005 will beat most observers’ expectations.

By M.R. Rangaswami, Sand Hill Group

It’s like clockwork. Around this time, almost every year, many software industry observers begin to pronounce the year’s downfall. It goes something like, "We thought this year would hit $X in I.T. spending but it look’s like we’ll miss that mark due to Y and Z." 2005 is proving no exception to this trend. But a look at the latest software finance data shows that there are several causes to be optimistic about the year’s potential.

Software 2005 Podcasts Available

Now you can hear the best from Software 2005 anywhere your iPod is. Through a partnership with ITConversations, the best speakers from the conference are online now.

And don’t forget to check back often for additional podcasts from the event.

Also this week on, more videos (Scott Kriens of Juniper Networks, S. Mahalingam of TCS and David Kirkpatricks’ "Globalization of technology" panel) , and presentation materials from Software 2005 conference are available.

Visit for the entire spectrum event proceedings.

Poll: The SAP & Oracle Duel

SAP and Oracle continue to battle for position. Thinking ahead one year, how do you think the battle will play out?
Take our Pulse Poll >>

Last week, 39 percent visitors rated this year’s IT spending as "higher" than last year’s. Click here to give your opinion and see the results.

Learn More About India’s Economy

On June 3, the South Asian Business Association will hold its second annual conference, "The Indian Ascent to Global Eminence: New Opportunities and Challenges," at the UCLA Anderson School of Management. Sand Hill Group’s M.R. Rangaswami will be speaking on the conference panel.

Is the Software VC Model Broken?

Some industry critics are saying that the traditional venture capital model is a thing of the past and no longer an effective way to fund new software companies. How relevant are VC firms in the software industry today? What has changed about expectations and funding tactics and what still needs to change? Read the experts’ point of view in this week’s

Don’t miss last week’s blog about new models for intellectual property in the software industry.

If you want to become part of the blogging team or if you have ideas for an upcoming blog, email us at

Looking for a Software Expert?

Visit the community page and scan our software services directory.

These professionals specialize in serving software clients in a variety of areas — marketing, finance and creative fields. Have a service you’d like to post? Go to the community page and click on "Want to Post a Service?" log in, input information about your company and our editors will post the listing. Email with questions.

Get RSS-ed!

Don’t forget that you can receive the most popular content via RSS. Just visit the RSS site and look for the orange XML buttons on opinion pieces and deal lists.

More at

Read the most important enterprise software industry news of the week>>

Monitor the latest software venture capital deals >>

Size up last week’s software M&As >>

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

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Parting Thought

"Faced with the choice between changing one's mind and proving that there is no need to do so, almost everyone gets busy on the proof."
- John Kenneth Galbraith

Courtesy of Malcolm Kusher, The Kushner Group



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Click here to send us your feedback. 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. Click here to find out more.