Software Pulse

Business Strategy for Software Executives

August 20, 2007

Rachel Chalmers

The Reality of Virtualization

VMwares IPO reminds software vendors of the rapidly approaching virtual enterprise and the urgent need to get involved as the ecosystem is taking shape.

By Rachel Chalmers, The 451 Group

It was hard to miss the debut of VMware last Tuesday. The biggest IPO of the year and the most successful tech debut since Google, VMware shares skyrocketed during their first day of trading, netting nearly $957 million and making the 10-year old company worth nearly $20 billion. The following day, Citrix Systems announced its own virtualization play, picking up open-source vendor XenSource for $500 million in cash and stock.

Virtualization has been making inroads in the enterprise for years but the pace of adoption is quickening. VMware has long lead the server space. Now, Citrix is poised to be a leader in desktop virtualization.  But the potential for competition from tech companies of all stripes – including Microsoft - means that the future leaders of the virtual enterprise are anything but set in stone.

A closer look at the desktop and application space, the competitive landscape and the latest investments reveals a rapidly emerging market for virtualization technologies. The numerous investment, partnership and product opportunities for today’s software vendors mean the reality of virtualization is too great to ignore.


Looking for Promising SaaS Startups

The SIIA OnDemand conference takes place in San Jose from November 7-9, 2007. The organizers are looking for several early-stage, on-demand software vendors to present their businesses to the more than 400 industry executives, analysts and press members who will be in attendance. Click here to find out more and submit an application. The deadline for entry is Aug. 31.

Why Elevator Pitches Don’t Work

Today’s customers are barraged with empty product pitches. Jeff Thull of Prime Resource Group says it is time to revisit the effectiveness of the classic “elevator pitch” to be sure you are establishing relevancy and credibility with prospects. Read how in this week’s post to the Blog on sales best practices.

How Bill Walsh Would Coach Software CEOs

The passing of legendary San Francisco 49ers coach, Bill Walsh, reminded Steve W. Martin of his tremendous leadership skills. The principles Walsh employed on the field can be equally effective in the software business today. Read why in this week’s post to the Blog on New Era, New Thinking.

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.

Don't Miss: A Quiet Revolution in China's Capital Markets

Reforms that attracted little attention in the Western world mark a major step forward in the modernization of China's capital markets. Read why in this article from The McKinsey Quarterly.

News Update: Virtually $20 Billion

VMware’s awesome IPO gives it a massive market cap; plus, SCO loses (most likely), Dell admits it cooked the books, Larry Ellison travels to Israel. Read these stories and more software news of the week in the latest Software News Summary.

Poll: VMware, Citrix, Microsoft or ??

Who will lead the virtualization market three years from now?
Take our Pulse Poll >>

Last week, readers gave their opinions on how the “America Competes” act will impact U.S. competitiveness in the global tech marketplace.
Give us your opinion and see the results >>

More at

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

Semantra receives $3.8 million.
Monitor the latest software venture capital deals >>

Oracle buys Bridgestream.
Size up last week's software M&A deals >>

Greg Walker named CFO of InnoPath Software.
See whos 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

"You cannot depend on your eyes when your imagination is out of focus."
– Mark Twain

Courtesy of Malcolm Kusher, The Kushner Group