Software Pulse

Business Strategy for Software Executives

November 20, 2006

Bruce Guptil

The IT Utility: A Vendor Reality Check

A new study stacks up user expectations for utility computing against what vendors are offering today and lays out a roadmap for adoption.

By Bruce Guptill, Saugatuck Technology

While most executives initially look to utility computing to help dramatically reduce IT operating costs, the reality is that one of the greatest long-term benefits is the facilitation of greater business agility through a more flexible, on demand technology infrastructure.  In this sense, the ultimate goal of the IT Utility is to provide a more efficient and effective technology-enabled business infrastructure and architecture that both lowers ongoing operating costs while at the same time enables more nimble and competitive business innovation.

But what is the reality of Utility Computing? Is it really a desirable place to be? And how – and when – will we get there?

This article digests and presents new research by Saugatuck Technology that provides a framework and roadmap for what the IT Utility will really look like for user enterprises and vendors alike – and why neither is going to see the greatest benefits of utility computing until the end of this decade at the earliest.


Free Summary Report from e2006 Conference

Last month, more than 150 software CEOs, investors and professionals gathered in Pebble Beach, Calif. for the ninth-annual Enterprise 2006 conference. The result? Tremendous insight on the current and future potential of the software industry. Read the Sand Hill Group/McKinsey & Co. report which summarizes the conference, available free at

Enterprise 2.0 – Buzzword or Revolution?

While few agree on its definition, “Enterprise 2.0” is garnering a tremendous amount of attention from software experts. Antony Awaida of StartLeap reviews a recent E2.0 discussion and looks closer at it should mean for software vendors today in this week’s post to the Enterprise 2.0 Blog

6 Steps to a More Profitable Business

For vendors who have hit a growth plateau, a redoubling of focus is critical. Michael Knowles of One Straight Line offers a six-step program which can help businesses double their revenue. Read more in the Blog on Sales & Marketing.

How to Protect Maintenance Revenue

Maintenance is the bread-and-butter of most software vendorsí business models. In order to keep this line item healthy and growing, Chris Dowse of Neochange presents the results of a new study which correlates user adoption with higher maintenance revenues. Read more in this weekís post to the Blog on best practices for usage and usability.

Publish Your Perspectives!

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

Gates on Stage

Microsoft dominates the week with both Bill and Balmer speaking out; plus, smashes earnings, a new CRM market leader and CA wants Sanjay's house? Read these stories and more software news of the week in the news summary.

LucidEra on the Radar

Imagine the intersection of on-demand and business intelligence. LucidEra debuted such an offering last week and promises significant improvements over today’s BI offerings, including better information in an easy-to-use format. Read’s interview with CEO Ken Rudin on the genesis of LucidEra, what it offers other software vendors and what every software CEO needs to get a new company off the ground.

Don’t Miss: The Latest Thinking on IT Strategy

Enterprise customers are becoming more savvy about how they choose enterprise IT investments. Today, some companies are using venture capital-like models to differentiate between the level of IT support needed for various business initiatives. Learn more about how CIOs are making these decisions in this article from The McKinsey Quarterly.

Poll: SAP Will Rule CRM?

A new Gartner report says SAP will take the CRM market lead from Oracle’s Seibel by the end of the year. Who do you think leads the CRM market today?
Take our Pulse Poll >>

Last week, readers gave their opinions as to what the impact of the U.S. elections will be on the software industry.
Give us your opinion and see the results >>

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

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Parting Thought

“The future is already here - it's just unevenly distributed.”
–William Gibson 

Courtesy of Malcolm Kusher, The Kushner Group