"In a recent article on SandHill.com, Larry Augustin, chairman of VA Software, declares the traditional software company business model broken. To support his claim, Mr. Augustin cites a new Goldman Sachs study showing that in 2005 software companies will end up spending 82% (up from 66% in 2000) of their new license revenues on sales and marketing. In other words, enterprises are paying license fees for the privilege of being sold to!
"But few customers like being on the receiving end of a sales process, and I suspect that once software customers understand that their big bucks are used to finance the dreaded sales effort, they'll take their money and plough it elsewhere..."
