The New, Game-Changing Rules of Enterprise Software

The rules of the game have changed for enterprise software. In Aaron Levie’s recent article on TechCruch, “Building An Enterprise Software Company That Doesn’t Suck”, he breaks down the changes in enterprise software business into three categories. Levie details how differently enterprise software is developed, sold, and supported today versus just a few years ago.

I found Levie’s perspective interesting – especially because it matches the model that we have followed at Pentaho to achieve great success.

1. How enterprise software is developed today.

It’s no longer about products that are feature-bloated merely to get into RFP wars and win multi-year, large contracts. Those days are over – all they produced were complex technologies that had no real usage.

Now what drives demand is the real business application of software. Success is in user adoption, not in feature checklists.

This is exactly why an open source business model has been successful for enterprise software. The products are developed because there was a real business need for them. Many features are implemented and submitted by the community members, because real users need these capabilities in their business applications. This is a true outside-in, end user focus.

2. How enterprise software is sold today.

Long gone are the days of interruption marketing and trying to sell to every poor soul who happens to pass by. The buying process is much more bottoms up today. As Levie puts it, “With web-delivered, freemium or open source solutions, we’re seeing viral, bottom-up adoption of technology across organizations of all sizes.”

The open source model allows users to buy into the software (aka use it) before actually paying for it. Rather than knocking on every door to find an interested buyer, which is the model many enterprise software companies still follow, our sales organization is focused on actually helping customers navigate their options, providing consultative support and knowledgeable market advice.

3. How enterprise software is supported today.

In a traditional software licensing model, the customer pays a hefty upfront fee, just to get entitled to use the software. In addition, the customer has to pay for an annual subscription and support.

Luckily, buyers have realized that there are better options out there. As Levie rightfully notes, “The unstoppable trend toward ‘renting’ vs. ‘buying’ software, means the vendor gets paid only as the software continues to solve problems for its customer.”

At Pentaho we are committed to our customers’ success and our high customer retention numbers speak to this.

Interested to find out more about our software? Download it now.

This blog was originally posted on Business Intelligence from the Swamp.

Analyst Insights: How Pentaho BI 4 is Changing the Game for SMB Companies

Recently I had the pleasure to speak with Albert Pang, a veteran of the application market space with more than 25 years of experience and the founder of Apps Run The World. In our conversation, centered on Pentaho BI 4, we discussed the use of business intelligence by the casual business user – something that in the past has been impossible due to the highly technical nature of business intelligence deployments.

In his recent blog, Business Analytics for the Masses, Pang depicts this problem and describes how it has impacted the SMB market. He explains how highly technical BI tools worked as a roadblock for SMB companies that did not have intensive IT resources to allocate to BI projects — something that independent BI vendors in the market (Pentaho, Tableau, and Qliktech) have realized and leveraged as an opportunity to improve the BI market.  

Pang goes further by saying “Pentaho, which has made its name in the open-source BI marketplace, introduced Pentaho BI 4 Enterprise Edition in June. One of the key targets is non-technical business users who can use the new product to create highly formatted, interactive reports with zero training or involvement from the IT department.”

Part of our mission at Pentaho is to make it easy and cost effective for SMB companies to reap the same benefits historically only obtainable by blue-chip companies. With Pentaho BI 4, we’ve extended this mission to encompass the casual business users too.  As this “New wave of BI” becomes more pervasive, more users than ever before will look to harness BI for their everyday business use. Pentaho is already seeing this effect with our customers including Loma Linda University Healthcare, SpecSavers, Centro, and others.

I encourage you to read the blog post, Business Analytics for the Masses by Albert Pang, and let us know your thoughts.

Farnaz Erfan
Product Marketing
Pentaho Corporation

This blog was originally posted on Business Intelligence from the Swamp.