An Open-ing Salvo

Microsoft threatens open source vendors with patent infringement; plus, Soros changes his software bets, Aquantive hits the jackpot, Salesforce.com wins customers and more software news of the week.

If you can't beat 'em, sue 'em.

This age-old American business practice might be Microsoft's backup strategy for battling its war against open source vendors.

In an email to the press, Microsoft said open source software violates 235 of its patents. The company did not disclose which patents are being infringed upon or what it plans to do about it.

New Reports: State of the Industry and Customer Survey

McKinsey & Co. in partnership with Sand Hill Group has compiled two new reports: “The State of the Software Industry 2007,” which examines the latest industry performance and market statistics, and “2007 Enterprise Software Customer Survey,” which reveals the findings from a study of software purchase decision makers. Visit www.software2007.com to download complimentary copies of both reports.

SANDHILL.COM BLOG POST OF THE WEEK:

Agile Software Gets Acquired

While the top-tier vendors boast of wide-ranging, integrated functionalities with deep pockets, specialized solutions like PLM, SRM, MDM, Content management, BPM, Document management, Compliance and Vertical solutions coming from best-of-breed players continue to remain attractive to buyers of different spectrum.

The mega vendors are trying to counter this competition with promises of rapid deployment methods and attractive packages of fixed time, fixed price based accelerated rollouts with templatized approaches. Again for reasons centered on concerns of integration and cohesion, even these options are proving to be seen as less attractive by prospective buyers.
Prefabricated/Cookie-cutter/fixed term/price - all look attractive on paper, in real sense these do not satisfy the prospects, despite these being SMEs. This forces the onerous responsibility on the mega vendors to offer solutions that are not only cost effective, less complex and faster to implement but offer open solutions that can be extended over time and be amenable for efficient version and technology upgrades.

With all this - why is consolidation fever repeatedly felt?