A new wave for Enterprise Software

The common definition of enterprise software is software that is used in organizations (Business or government). This enterprise software is integral to the information systems that run the organization. This software are normally service oriented and are aimed to improve the enterprise productivity and efficiency so that they can compete in a more unique way.

Enterprise Software has been dominated by companies like Oracle, SAP, IBM, Microsoft and other big companies but they have prohibitive pricing, long product cycles and difficult user interfaces. These qualities have made the enterprise software segment not appealing to new comers and entrepreneur as well as venture capitalist; sometime all of them hesitate on investing in this sector. But a new wave of enterprise software has come. This new wave is emerging to tackle problems that didn’t exist or that didn’t have solution a decade ago. This new companies are offering efficient and effective solutions basing their technology on the cloud. With the old paradigm of client-server this would have not been possible because the cloud technology has in a way removed the big advantages that big providers had. The use of the cloud has brought a bottom-up adoption instead of a traditional top-down deployment. With this bottom-up adoption divisions of a company can try enterprise software from the cloud without losing any implementation time and with a low learning time because this software have intuitive user interfaces. This type of business model has been useful for getting started and trying new software, things that are not possible to do with big vendors like Microsoft, IBM, Oracle, SAP, etc.

This new wave of enterprise software companies has to approach business problems with agility and speed, bringing innovation to a traditionally slow moving market. To retain the customer these companies will have to build better software, software that customers will love, easy to use and available over multiple platforms. Upgrades have to be done without any interruption to the client or their IT department.

The main difference that this new wave of enterprise software has with the old wave (Oracle, SAP, etc.) is that in the old wave they attract customer with an aggressive sales team where the new wave has to create innovative products that will keep and attract new customer. Their business model is also different and the old way of licensing is not the correct business model for the new wave of enterprise software. Just like the technology has changed and the lock in that occurs is not based on the cost of implementation or on difficult contracts, the lock in occurs because of the reliability and quality of the software, a new business model has to come, based on the customer paying as he goes or as he grows.

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