Software Pulse

Business Strategy for Software Executives

June 19, 2006

Jamie Lerner

The Case for Back-Shoring

As more software development moves offshore, one vendor achieves impressive results by moving work back to America.

By Michael Fields, KANA Software

I am not against offshoring, outsourcing or globalization. These strategies have significant value in business today.

Yet when I took the reins at KANA last year, I found a company with tremendous assets but many operational challenges. One significant challenge for KANA involved its development operation in India. After a thorough analysis, I chose to end the relationship with our vendor and bring development back to the U.S.

The decision we made to “back-shore” our development was the best move for KANA. Other small to mid-size software companies may be similarly constrained by their offshoring strategy – and they may not have taken the time recently to reevaluate the value of their initiatives.


New Webinar on Offshoring Best Practices

Software CEOs and VPs are invited to join the Sand Hill Group and Persistent Systems for a webinar, ěTrends, Strategies and Best Practices in Outsourced Product Development.î The online event will be held at 11:00 a.m. Pacific on June 29. Sand Hill Groupís M.R. Rangaswami will provide actionable data on product development trends and Sheng Liang of Seven Networks will share the most important takeaways from his offshoring experience. Click here to find out more and register for this informative event.

Open Source Apps – Later, Not Sooner

Matt MillerWith all the buzz about the big potential of enterprise open source, Matt Miller of Walden VC urges patience. Even though vendors may make a strong case for the benefits of open source apps, Matt argues that today’s enterprises are far too far down the road with traditional apps to change course any time soon. Read more in this week’s post to his Blog, The Picky VC.

The Next Big Thing – Price Management?

SAP seems to think so. Erik Keller takes a closer look at how its partnership with price management vendor, Vendavo, demonstrates the new array of partnerships small providers need to create in order to get traction in their category. Read more in Erik’s Blog, The Software Critic.

SOA  = Internet-Level Impact

There’s little doubt that services-oriented architecture (SOA) has the potential to dramatically impact software vendor positioning over the next decade. Judith Hurwitz of Hurwitz & Associates lays forth the likely progression of events brought on by SOA, including the industrialization of software, in this week’s post to the Blog on SOA.  

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.

Open Source: Money Pit or Money Machine?

Listen in to this new podcast from Larry Augustin, chairman of VA Software, and Tom Berquist, CFO of Ingres, join Sand Hill Group’s MR Rangaswami to discuss open source business models, opportunities and challenges. Click here to play the podcast on open source and to see a list of all recent podcasts from

Eyes on Ozzie

Bill Gates says he’ll step down and CTO Ray Ozzie steps up.  The meaning of this and another key Microsoft move, plus Oracle pre-announces big, IBM loses it “top dog” spot and a new “hot spot” for tech employment. Read these stories and more news of the week in the weekly news summary.

Poll: A New Era at Microsoft?

What will Bill Gate’s departure mean to Microsoft’s future?
Take our Pulse Poll >>

Last week, readers gave their opinions on the significance of IBM’s $6 billion Indian investment.
Share your opinion and see the results >>

Is Your Company the “Next Big Thing”?

Enterprise 2006 is just around the corner! The ninth annual invitation-only gathering of software CEOs and investors will take place in Pebble Beach, Calif. on October 8-10, 2006. One of the event’s most popular sessions allows a select-group of fast-growth software CEOs to present why their company will be the next Microsoft, SAP or Oracle. Click here to nominate your company for this prestigious opportunity and visit the Enterprise 2006 site to find out more about the conference. Act now - the deadline for nominations is July 15!

More at

10 booming U.S. cities for technology ń outside The Valley.
Read the most important enterprise software industry news of the week >>

SOA Software receives $11 million.Monitor the latest software venture capital deals >>

Reuters buys Application Networks for $41 million.
Size up last week's software M&A deals >>

Clear Technology names Brian Cohen as president and CEO.
See who's made it to the top in our list of recent software executive appointments >>

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Parting Thought

“I can't understand why people are frightened of new ideas. I'm frightened of old ones.” – John Cage

Courtesy of Malcolm Kusher, The Kushner Group