Saturday, May 19, 2007

Vendor Dilema...

In the previous blog entry, I asserted that no single business (/application) software vendor dominates the SMB market. It goes without saying that the race for market share is on. Established and new vendors are trying hard to find the right business model to serve this market sector. So the interesting question at this point is:

What should a software vendor do in order to maximize their market share?

One way to approach to this will be to ask the SMB owners what they want from their business software. If any SMB owners are listenting pl pitch in. Otherwise,

In my estimation, one sure thing is that the requirements will differ across verticals and perhaps also across geographical regions (!). The other thing that is also sure is that there is functionality that is common across all SMBs.

Is this a good assumption to start? Any takers.

In the next few blog entries, I will focus on what I think is important for a SMB.


Thursday, May 17, 2007

Theme: "Trends in Business Software for Small Businesses"

No single software vendor dominates the business software market for the small to medium businesses (SMBs). There are many vendors serving this market. This is in stark contrast to the same market for the large corporations. The market of large corporations is dominated by a handful of companies. This is especially so after the market consolidation initiated by Oracle.

In this blog, we discuss questions, issues surrounding the business software market for the SMB. Numerous questions come to mind:

  • What would it take for a software vendor to gain entry and dominate the lucarative market of business software for SMB?
  • What are the characteristics and demographics of the SMB market?
  • What are the functional needs of this SMB market?
  • What are the needs of a SMB owner?
  • What are the pain points for a SMB owner?
  • Which delivery model will be successful - desktop based, Saas, or something entirely different like the open source model?
  • Which vendors will gain prominence in this market?
  • What should be the game plan for new vendors entering this market?
  • Should the vendor have a solution per vertical or is it possible to provide a lowest common denominator solution?
  • Would the market segment be ever dominated by a few vendors or will it always be served by a fragmented set of vendors?
  • ...

We invite small business owners, recognized SMB experts, and all others interested in the topic to participate and shed light on the dynamics of this multi-billion dollar market segment that is only beginning to gain prominence among the elite of the business software vendor community.


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