07 September, 2011

Enterprise software is much more valuable than B2C Internet

The Register writes a great article, Memo to kid coders: Enterprise software exists. Having recently gone back into B2B software as a product management consultant, it has been refreshingly interesting and challenging.

If you live or spend time in Silicon Valley, it's easy to forget that enterprise software exists, or that it still drives $245 billion in annual revenue.
Here's a gem of a quote from Aaron Levie, founder and CEO of Box.net (reported at Business Insider)
Why most startups are focused on consumers. "When you're 22 years old or 25 years old—the Y Combinator demographic—you have no context for the enterprise. If you're in your early 20s and you're hanging out with a bunch of other people in their early 20s, nobody has a sense of the kinds of problems that 'real workers' run into every day. They're running into a completely different set of problems like 'what's the party going on right now that I should be going to? What are my friends looking at on the Internet that I want to read? How do I share photos and videos?' That's their frame of reference for life." 
Here's another great quote (from the Register report)
All of which means we may be starving the enterprise of the industry's best developers. It could also mean, as former Facebook research scientist Jeff Hammerbacher once said, "the best minds of my generation are thinking about how to make people click ads. That sucks."
I couldn't agree more!

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