Software Pulse
June 2, 2010

Gad TobalyWhy Traditional Enterprise Software Sales Fail

A careful balance of “volume” and “value” marketing strategies will help vendors avoid the three classic reasons for unsuccessful sales efforts.

By Gad Tobaly, Nastel Technologies

Traditional enterprise software sales efforts fail for three reasons: your solution does not meet its market‘s needs, your sales force fixates on “big deals,” or your business model is flawed.

The recent economic downturn means software vendors can no longer to afford to make classic mistakes. A closer look at these reasons for failure shows that software vendors can leverage diversified go-to-market strategies to find new levels of sales success.


Learn the New Metrics of Software Success

CEOs and CFOs are using new measures to gauge their business growth. Sand Hill Group’s new report, “Software CEO Outlook 2010: New Decade, New Realities,” surveyed more than 100 top executives to compile an insider’s perspective on the current software business climate, forecasts for the next 12 months, and the strategic shifts taking place at the C-level in terms of both metrics and mindsets. Click here to buy the report and get the must-know details on how to lead your software company to new growth as the industry emerges from the economic downturn.

Here Comes “Everything as a Service”

Mike Smerklo of ServiceSource outlines the benefits of service-based offerings and the importance of the right business model to enable continuous delivery of value to customers in this post to the Blog on SaaS.

The Year Ahead in Europe

Ben Watkins of Intrinsic Executive Search shares the results of a survey of software executives on the upcoming European software business and recruitment climate in this post to the Blog on Predictions for 2010.

New Webinar: Identifying Cloud Business Value for Customers

Sand Hill Group’s M.R. Rangaswami and Kamesh Pemmaraju co-hosted a webinar with OpSource “Leaders in the Cloud: Identifying Cloud Business Value for Customers.” The seminar covered topics including reasons enterprises should move to the cloud, barriers and roadblocks are to cloud adoption, and implicationsfor IT leaders today. Click here to listen to a recording of the webinar.

DON'T MISS: The Basics of Business-to-Business Sales Success

B2B customers say they care most about price, but what they really want is a great sales experience. For sales reps, that means getting the basics right. Read how in this article from The McKinsey Quarterly.

Poll: No. 1 Reason for Sales Failure?

What is the biggest reason that software sales collapse?
Take our Pulse Poll >>

Top Stories from the Past Week

  1. Enterprise revenues trending up - good times ahead? (ZDNet)
  2. HP to cut 9,000 jobs, spend $1 billion in restructuring (WSJ)
  3. Apple passes Microsoft as top tech company (SF Chronicle)
  4. IBM CEO May Step Down in 2011 in Historic Succession (BusinessWeek)
  5. California County Sues Deloitte For Fraud In SAP ERP Project (ChannelWeb)

The Latest Software Business News on

All Headlines: Google phases out Microsoft Windows use.

VC Activity: Mobile SaaS vendor Whoop receives $1.8 million.

M&A Deals: Oracle deals for telecom, marketing software.

Executive Moves: Antti Huima named President and Chief Executive Officer of Conformiq.

Quote of the Week

“This has got to be not only one of the greatest comeback stories, but success stories of the last 20 years... You see companies coming back from the dead, but not to the point where they achieve this staggering financial position.”

- Tim Bajarin, president of Creative Strategies, on Apple overtaking Microsoft as the top tech company

This Week's Sponsor


OpSource delivers a complete Web operations solution for software as a service and web companies. Many of the largest software companies and the most innovative web companies have selected OpSource as their Web operations partner. By doing so, they are able to focus their resources on building on-demand businesses, rather than investing in and managing the complex and costly infrastructure 24x7, staff and services necessary for successful web application delivery. Providing everything but the application itself, OpSource is the only Web operations company whose customers pay only for what they sell, not for the resources they consume. Find out more.

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