Software Pulse

Business Strategy for Software Executives

September 24, 2007

Mark Gaeto

Ten Steps to Tech Transfer

Software companies can rapidly monetize their IP and broaden their market by licensing or selling their technology to larger tech companies. Here’s how.

By Mark Gaeto, The Alesco Group

In a sea of innovation and technology proliferation, monetizing a software vendor’s intellectual property can be a challenge for small and mid-size software companies. Investments in sales and marketing can be substantial – not to mention, the continued need to raise capital to meet growth targets and investor needs

“Technology transfer” is a proven growth strategy that has been used by software companies for many years to rapidly monetize their IP by leveraging the channels, brand and market position of larger firms. The potential? A considerable increase in sales, profits and share of market. Here’s what software companies need to know about tech transfer in order to do it successfully.


Get a Complimentary Pass to IT Connect Expo: Software Solutions for the Midsize Enterprise

As a subscriber to and a member of the Silicon Valley Software ecosystem, please register for a complimentary pass to IT Connect Expo at the Santa Clara Convention Center, October 17–18, and produced by Propel Media,

Keynotes from NetSuite, SAP, Oracle, and Cognos focus on how their offerings are tailored to the mid-size and emerging enterprise. Breakouts will cover SaaS, BI, ERP, CRM, Open Source, and Virtualization issues for the midmarket.

More than 20 leading Software Vendors will present their products in a series of timed seminars, giving you an excellent overview of the companies aggressively targeting the midmarket.

Register at and use the code “MPSANC” for your complimentary pass – a $199 value – and feel free to pass this invitation to your colleagues!

Automate Your License Operations

Geoff SurkamerSoftware vendors have a difficult time tracking which customers have which licenses. Geoff Surkamer of License Technologies Group explains that an effective licensing management system can improve customer satisfaction and more easily drive revenue into the business. Read how in this week’s post to the Blog on operational best practices.

The Decision to Buy

Software salespeople are taught to understand and impact their customers’ purchase processes. But what happens when there is no official “process”? Jeff Thull of Prime Resource Group says this is a common problem in enterprises today. Read how sales reps can help foster an effective “decision process” in this week’s post to the Blog on sales best practices.

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.

Spurring Value Creation in IT Services

The founder and chairman of Satyam details the philosophy that has underpinned the company’s rapid ascent through the ranks of the world’s top IT services providers. Learn more about his model and strategies in this article from The McKinsey Quarterly.

Enterprise 2007 Conference Report Online Now

In July, an elite group of software CEOs, investors and professionals were invited to participate in Enteprise 2007 in Pebble Beach, Calif. The invitation-only gathering spurred a series of insightful presentations and discussions about strategy and the next era of the software business. Read the new McKinsey & Co./Sand Hill Group conference summary report on Enterprise 2007 - online now!

News Update: Dreams & Nightmares

SAP steals’s conference thunder with the launch of BBD; plus, Oracle gains big in Q3, TCS goes big in China and Microsoft loses big in Europe. Read these stories and more software news of the week in the latest Software News Summary.

Poll: Best Growth Strategy?

What is the best growth strategy for small and mid-sized software vendors today?
Take our Pulse Poll >>

Last week, readers gave their opinions as to which vendor would be the most likely to go private.  What do you think?
Give us your opinion and see the results >>

More at

SAP: Big businesses won’t be interested in on-demand ERP.
Read the most important enterprise software industry news of the week >>

Content management system vendor, Aptara, receives $23 million.
Monitor the latest software venture capital deals >>

Ariba buys Procuri for $101 million.
Size up last week's software M&A deals >>

Tim Curran was named CEO of Vela Systems.
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

“Entrepreneurship is the last refuge of the trouble making individual”
–Mason Cooley

Courtesy of Malcolm Kusher, The Kushner Group