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Business Strategy for Software Executives |
September 26, 2005 |
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New VC Rules for On-Demand SoftwareExpansion round specialists, Insight Venture Partners, provide their list of must-haves for investing in on-demand software companies.By Deven Parekh and Peter Sobiloff, On-demand is the big game in software today. We’re bullish about the prospects for recurring-revenue software solutions. Whether you call them application service providers (ASPs,) on-demand vendors, or even a subset of software-as-a-service (SaaS) companies, the opportunity is the same: a growing company with streamlined operations that provides a hosted, pay-as-you-go software solution which earns them a steady revenue stream, as well as a satisfied enterprise client base. But not every software vendor can play successfully in this emerging field. We use a new set of criteria we use to analyze on-demand software vendors as VC investment opportunities.
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Do Megamergers Still Make Sense?As the software industry consolidates, Steve W. Martin asks whether the merger of high-tech giants provides value to the companies involved. In this week’s post to the SandHill.com Blog on M&A, Martin says megamergers fall into one of three categories – destroyers, losers and winners. And don’t miss last week’s analysis from MR Rangaswami, Mike Nevens, Bryan Stolle and Vinnie Mirchandani on the industry impact of the Oracle-Siebel deal. Win New Markets and Please InvestorsProfits come from new markets. But approaching a new market can be disruptive to current operations. Nilofer Merchant of Rubicon Consulting addresses how to profit from value innovation in this week’s post to the SandHill.com Blog on New Era, New Thinking. The Secret Sauce of Open SourceTony Baer speculates on the potential viability of Enterprise Services Buses open source projects in this week’s post to the SandHill.com Blog on open source. Share your insight on the software business. Email editor@sandhill.com with your submissions to the SandHill.com Blog. Poll: Microsoft’s Google-y NightmareNews
reports speculate that Microsoft’s longstanding fear of losing
its Windows monopoly now has a name: Google. Could the Internet upstart
ever overtake Microsoft with a Web-based application platform? Last week, SandHill.com visitors gave their opinions on whether Oracle
could ever be able to truly integrate its acquired product offerings. More at SandHill.com:Forrester predicts 2006 IT spending to grow 4.3%. Rearden Commerce gets $25 million. HP buys Peregrine Systems and AppIQ. Andrew Lark named CMO of LogLogic. Send us your feedback on this newsletter and the SandHill.com site. Parting Thought“Everything that irritates us about others can lead us to an
understanding of ourselves.” Courtesy of Malcolm Kusher, The Kushner Group |
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business processes. Visit SOFTWARE PULSESoftware Pulse is a publication of SandHill.com, the online resource for software business strategy. To subscribe, To unsubscribe, Forward this email to a friend Send us your feedback, SandHill.com 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. |
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