Bilateral Symmetry
maggio 18, 2009 by Giorgio Buccilli
Filed under Featured, Software Business
R&D investments stagnating and engineering software sales slow down.
From a software customer perspective, three factors are shrinking investments in engineering software:
- Open source software. Customers start to consider open source software as an option.
- Mergers or acquisitions. Newly-consolidating client companies maximize interoperability and reduce software redundancy, i.e. they get rid of the ones they don’t need anymore.
- Wide Area Network vs. Local Area Network. Global companies want to deploy software on global scale. They need to reallocate software licenses into main servers, to gain economies of scale and optimize expenses for software.
From a software vendor perspective, three factors are driving sales down:
- Open source software. Software editors consider open source (only) as a threat.
- Mergers or acquisitions. Newly-consolidating software companies maximize interoperability and reduce software redundancy… It takes time, money and makes their clients endlessly ‘waiting for the next release’.
- Wide Area Network vs. Local Area Network. For obvious reasons, global software vendors (still) like to sell software on local basis, avoiding clients to gain economies of scale and optimize expenses for software.
Symmetric perspectives on software sales drop-off.
Software and Sushi
ottobre 20, 2008 by Giorgio Buccilli
Filed under Featured, Software Business
Software and Sushi are two of my favourite things.
I like the customizability of sushi meals. There’s always a sushi meal that fits with my appetite. I also like the inexpensiveness of sushi. Or actually the inexpensive price per item. Three Euros for a Temaki, two for an Uramaki, etc. Low price per item means low pain in the buying process. Moreover I like the zenlike design of sushi sets.
Like with the sushi, some software editors offer component-based software, where clients choose from a “menu” the modules they need.
Sushi restaurants & software companies success factors:
1. High quality components
2. “A la carte” pricing
3. Product design
Software Dis-Integration
settembre 8, 2008 by Giorgio Buccilli
Filed under Software Business
Componentware means software designed to work as components for larger applications.
Like in the PC, that is built from keyboard, monitor, mouse, etc.
In componentware, because the interfaces between modules are standardized, it is possible to mix software from different providers. Componentware is changing the dynamics of the business of software.
Some software companies see it as an opportunity; SAP for example, plans to split its monolithic solution into components that will facilitate the integration of third party components. Other software companies see componentware as a threat, as it could make the entrance barrier lower and the life easier for newcomers.
