The consumer Web has been a driver of enterprise innovation for some time as I am sure that all of you know from Web 2.0 to Enterprise 2.0 to BYOD, the list is long. There is another trend is emerging, the app store. We are very used to just going to a consumer web app store and downloading what we want. I did it while I was writing this post.
The post, Time to Open Your Own App Store, covers the trend nicely. It notes that Michael Ni, chief marketing officer for Avangate, a provider of an e-commerce service platform, says solution providers will need to start setting up their own app stores. Many have and I would agree. It is trend I hear about through conversations in the marketplace and it makes sense. Influenced by the success of mobile computing applications, enterprises are asking vendors to deliver applications in a modular and flexible way.
It concludes, “In a world where customers are increasingly starting to mash up applications to create any number of composite applications, the solution provider has to be able provide access to a full range of applications because a lot of customers simply don’t know what they want or need until they see it.”
The world of software is dramatically changing from the openness of social software to the new means to host this software through the cloud, as I mentioned in my last post, to the means to purchase software. The core issue here is that software is becoming more customer centric. In the good days for systems integrators, like several of my former employers, were used to figure a five times software cost for the implementation. Now people expect that number to be closer to zero. Or that implementation provides some value like connecting social software with enterprise apps and not just getting it to work. The world is changing and app stores are part of the new order.
Bill, thanks for your comments and thoughtful post about Avangate’s perspective on app stores!
Just an anecdotal point we heard from a major software provider, the ratio of software:services is dropping from 1:5 as you stated to 1:0.2! This is going to significantly disrupt the partner ecosystem.
It’s important to note that systems integrators and implementation partners used to play a more important role of distribution in the software value chain which is getting redefined as more customers are expecting instant gratification with instant-on availability online. The shift from one-off transactions to continuous relationships is here now, all driven by the consumer web bleeding into the enterprise. Software firms in the future have no choice but to adapt - to control distribution with enterprise app stores and/or transitioning to SaaS based models.
Appreciate the great ideas, and the opportunity to comment.
-Michael Ni
Posted by: Michael Ni | August 22, 2012 at 08:44 PM
Michael - Thanks for your comprehensive comment and further input. It is appreciated.
Posted by: bill Ives | August 23, 2012 at 01:19 PM