Ray Lane: Good riddance, software business

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I disagree...

While I agree that open source, software as a service, and the rise of development in China and India are interesting and important trends, Mr. Lane is greatly exaggerating their impact. Traditional software business models will continue into the foreseeable future along side of and incorporating these new trends.

In 2006 Microsoft did $54.9b in sales, up 11.5% from the year before. Oracle did $18.6b in sales, up 9.5%. SAP did $13.6b, up 10.3%. If the big, "traditional" vendors are getting bigger, how can you call an end to the business model? If they were flat or shrinking it would be a different story.

I'm not defending the use of CDs to ship software, nor am I saying that SaaS and non-license revenue based models aren't very important, but I think it is a mistake to think the big guys, and some new ones, won't adapt.

Posted by: estahl   Posted on: 02/08/07 You are currently: a Guest | Members login | Terms of Use

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