Software Pulse

Business Strategy for Software Executives

September 1, 2009

Pekka Huttunen

Winning in a World with “Less Software”

SaaS and cloud computing are reshaping the nature of enterprise demand. Here’s how software vendors can adapt and succeed.

By Pekka Huttunen, Accenture

One of the high-tech industry’s fastest growing product lines is netbook computers. This scaled down processor is proving to be popular for the rising number of consumers who would rather spend a few hundred dollars for a basic PC with Internet connectivity instead of spending more money for a feature-rich machine loaded with software and applications they don’t want, need, or can’t afford—especially during these tough economic times.

This trend toward “less software” is a fundamental industry shift which translates to a declining need for dedicated, on-premise applications. Software vendors must move rapidly to adopt a variety of strategies to succeed in the next era of enterprise computing.


Cloud Connect – Call for Speakers

The premier cloud computing event, Cloud Connect, will take place on March 15-18, 2010 in the Silicon Valley. Share your thought leadership and best practices at this influential meeting. Click here to apply as a speaker and/or suggest a session.

The deadline for applications is Sept. 15, 2009.

Enterprise Software – Not Dead Yet

Thomas Klein of Greenberg Traurig takes a look at the historic cycles of software growth and decline – and the corresponding moves of the VC space – in this post to the Blog on Enterprise 2.0.

Test Automation – A Reality Check

Ajay Semwal of Aspire Systems presents the benefits of an ROI analysis as part of test automation planning in this post to the Blog on R&D best practices.

Publish Your Perspective! wants your opinions. Send your thoughts on the enterprise software industry to editor, Maryann Jones Thompson ( and have your opinions published on our site.

IT Architecture: Cutting Costs and Complexity

A joint effort by IT and business leaders can help companies not only to save money but also to prepare for the return of growth. Read more in this article from The McKinsey Quarterly.

The Week in Review: Increasing Cloud Cover

Enterprise cloud budgets are on the rise; plus, VCs shrink, cash cow becomes endangered species, Snow Leopard takes a hit and vEOS arrives. Read the Week in Review and get all the news stories that shaped the software industry over the past week.

Poll: Too Late to Adapt?

Is it too late for on-premise vendors to adopt a next-generation model and compete in a world with “less software”?
Take our Pulse Poll >>

Last week, readers speculated on whether the traditional VC model could survive the recession.
Give us your opinion and see the results >>

More at

Snow Leopard renews the OS war with Windows.
Read the most important enterprise software industry news of the week >>

Approva lands $14 million in VC investment.
Monitor the latest software venture capital deals >>

Tibco Software buys DataSynapse for $28 million.
Size up last week’s software M&A deals >>

Jay Fulcher named president and CEO of Ooyala.
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

“Never cut what you can untie.”
— Joseph Joubert

Courtesy of Malcolm Kusher, The Kushner Group



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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click here. is published by Sand Hill Group, which provides investment and management advice to emerging leaders in the $600 billion enterprise software, services and solutions market. Sand Hill Group produces the Software and the Enterprise series of conferences for industry executives, and authors research reports on cutting-edge technology topics.