Monday, April 19, 2004

The enterprise software business has been built on a simple business model - build a new software product and sell it to companies that will pay you for the increased efficiency that the software creates for them.

But its harder and harder to get companies to pay for software today. They’ve got a lot it in place already and they are paying more and more every year to maintain it. Plus they’ve been burned by relying on small companies to deliver for them.

I don’t believe that we have come anywhere close to addressing every problem that software and information technology can solve for businesses. But I am beginning to feel that we may be reaching a saturation point in terms of what enterprises can pay for software and information technology.

What might be the best Business model ???


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