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Wednesday, August 10, 2005
Bryan Stolle, CEO, Agile in a hard hitting viewpoint outlines that Considering the innovation going on in the software business, it is surprising that many analysts and investors can describe the entire, $600 billion, many-thousand-company industry with words like "mature" and "consolidating". He sees new business models and technologies are taking hold across the software vendor landscape and points out that software is not a homogenous market. Since it is heterogeneous there is no If strong case for a market future with consolidation leading to a handful of players. As different enterprise software segments have very different maturation cycles in each market segment - the market lifecycle model espoused by Geoffrey Moore and others applies. There is still much innovation to be done, especially as the market gets more and more vertically focused. Software is a very broad category and reminds that we are a long, long way from a Global 5000 enterprise going to one company, and saying, "automate all my business processes." Talking about consolidation without digging deeper ignores tremendous opportunity. He cautions that the way analysts are running down the industry, many innovative vendors will have to shut their doors before they get the chance to be the next Salesforce.com. Enterprise software is a long-term investment and serious business - analyst firms should put serious effort into better guiding IT buyers with thoughtful analysis around predicting market evolution, not just "feeds & speeds". Scale matters, and everyone is trying to find ways to achieve it, whether it be through investments in new products or market segment expansion to drive organic growth, or more through inorganic M&A efforts to create more immediate results.
Category :Consolidation, Emerging Trends |
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