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Thursday, January 19, 2006

The Enterprise Software Market : Emerging Models.

It was always expected that enterprise applications shall begin to coalesce around open web services where users can pick and choose just the features they need, and support add ins of distinct blocks provided by other companies. This would enable business to create and modify applications more economically and swiftly.Leading edge products can come from a mega enterprise or a small IT shop) shall begin to roll out simpler, more flexible and easy to modify blocks of solutions, to meet customers demand of more flexible and agile systems. We have argued earlier that composites have the potential to transform enterprise application landscape. Today in reality, most IT applications inhibit & not truly enable business process change. To meet the business needs, IT must either build or deliver a new generation of applications that embody business processes, reuse existing applications, and are built to accommodate change with minimal effort. The enterprise application features are mostly maturing, and increasingly large enterprise users are finding less missing functionality in their applications, creating a downward pressure to spend on upgrades around these products. Courtesy of Jeff Nolan saw this wonderful note from
Alorie. The note rightly brings forth for discussion the fundamental shift that are beginning to happen today in the enterprise software market. The shift is perhaps realigning the fault line separating the old guard from the new guard.While the dominant vendors of today like the SAP’s, Oracle’s may have to push SOA & Web Services harder, there always remain the challenge of getting trapped in prevailing moulds.As Alorie very rightly points out there is it's been the status quo in the business applications industry for years . Today, something of extraordinary importance for the enterprise software market and something that starkly defines the new generation from the old guard is beginning to happen. Companies like Oracle & Salesforce.com may compete in the same market, but their messages to customers were worlds apart. While Oracle executives urged customers to "retire" custom-built programs so they can migrate more smoothly to next-generation releases, Salesforce actually encourages customers to build custom programs on top of its software. In fact, Salesforce's latest service is an online marketplace where customers can freely distribute and sell their home-brewed creations. The company wants to make custom software development as easy as blogging. While it easy to talk when there is incumbent encumbrances, it is hard to avoid realizing that the models are increasingly getting polarized – though the race may look unequal from a business revenue standpoint. But that’s generally said of all upstarts – but down the line that distinction may turn out to an advantage. It turning out to be a battle of product architectures & business models.

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