Always On: Open-Source RX

“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…”

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