“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…”
Web Webster has more than 20 years of writing and editorial experience in the tech sector. He’s written and edited news, demand generation, user-focused, and thought leadership content for business software solutions, consumer tech, and Linux Today, he edits and writes for a portfolio of tech industry news and analysis websites including webopedia.com, and DatabaseJournal.com.
LinuxToday is a trusted, contributor-driven news resource supporting all types of Linux users. Our thriving international community engages with us through social media and frequent content contributions aimed at solving problems ranging from personal computing to enterprise-level IT operations. LinuxToday serves as a home for a community that struggles to find comparable information elsewhere on the web.
Property of TechnologyAdvice. © 2025 TechnologyAdvice. All Rights Reserved
Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.