TechTransform, September 22, 2002: Online never died and the Internet continued to grow throughout the tech crash. Today, if you've adjusted your biz model, you can do business. What's the business model? Pure Online.
TechTransform uses everything web to bring our far-flung network together, and we're part of a growing trend. One of the enterprise software startups we advise has literally no home office and it is very successful, thank you. The pure web-based applications like Oracle Small Business, Quickbase, SalesForce.com and our own client Bizfinity are winning customers because they require almost no infrastructure in your business.
The consequences are:
Ongoing rapid (painful) adjustment for Information Technology (IT) providers, both in software and infrastructure.
Decision makers are more and more the business teams and less the IT staff (a trend that was starting in 1996).
Increasing integration of online applications through what is called web services, with Microsoft an especially strong player.
Re-emergence of the channel - this time through the online application providers themselves, and the integrators. Businesses just won't talk to vendors directly anymore - why bother?
Big licenses a thing of the past. That doesn't mean you can't charge good money...but it will be on a per-seat subscription basis. The lifetime value of a subscription customer is compelling: learn to manage and optimize your subscription model.
All this is leading to the remark we heard from one of our reseller partners a month ago: "We're not seeing the $4MM contracts this year but lots of $100,000 contracts." Yep, that's about right. And you can flourish, 100K at a time.