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Publisher / Editor @ CloudAve and Enterprise Irregulars. Industry Observer, Blogger, Startup Advisor, Program Chair @ SVASE (Silicon Valley Association of Startup Entrepreneurs). In his "prior life" spent 15 years immersed in the business of Enterprise Software, at management positions with SAP, IBM, Deloitte, KPMG and the like.

7 responses to “How Software Can Be Resilient to Recession”

  1. Sridhar Vembu

    My own personal belief, based on Austrian (aka libertarian) school economics is that we are going to have a long hard economic winter. There have been too many excesses, driven by easy credit policies of the Federal Reserve, and aided and abetted by central banks around the world. Mainstream economists didn’t anticipate the severity of the events we are experiencing, but anyone following the Austrian school clearly saw this one coming – as with such things, predicting the timing was impossible, but the overall direction was fairly clear.

    Japan stands as the proof that such a long winter can happen to advanced industrial nations in the modern era of elastic, floating currencies. Japan has many impressive economic advantages, yet that didn’t stop them from suffering prolonged economic stagnation.

    We are all Japanese now.

  2. martyncrew

    Not that this is a scientific sampling, but all of my actively billing clients and most of my inbound inquries, are either SaaS business model based or are SME plays leveraging using Open Source technology.

    Having worked 30+ years in the enterprise software space it will be very hard, if not impossible, for the licensed SME software vendors with their relatively high-cost bases, to respond to the challenges of a SaaS based pricing model from low-cost producers.

    On the other hand, no-one should underestimate the ability of the licensed vendors maintenance revenue streams to sustain these companies for many years to come. On that basis, I would not expect to see many of the SME vendors disappearing anytime soon but I would expect to see their new sales revenue continue to decline in the face of SaaS based competition.


    [..]3 weeks ago we launched CloudAve in turbulent times, so barely a week later I ended up writing aboutHow Software Can Be Resilient to Recession.  The summary:[..]


    [..]Just because I wroteHow Software Can Be Resilient to Recessiondoesn’t mean I’m naive enough to declare that all SaaS businesses are recession-proof – they just have a better model to weather the storm, which is now inevitable. [..]


    [..]….   And if it wasn’t clear before, the current crisis brought home the message loud and clear: onlybusinesses with real revenues survive.  Which probably means that for all my yelling and screaming, Zoho is quite right coming out with an email system that meets the needs of businesses who actually pay for it.  After all, this is what enables them to offer all the other apps I like for free.[..]

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    [..] Three weeks ago when I wroteHow Software Can Be Resilient to RecessionI was very careful using the “Big R” word – since then the bottom fell out,  the doomsday-chorus started.  On my personal blog I suggested we should [..]

  7. Crisis as a Service | Inspired? No

    [..] Zoli predicted itand [..]