.: Is Advertising the Future of Software Revenue? Part I
Category:Home / Internet / E-Business
There is a strong movement toward Internet-based software applications. Of this, there is little doubt. I have written on the SaaS trend in the past, and believe it is real. But sometimes market trends such as the move toward SaaS are overstated, both in terms of the speed of change, and also how much change the trend will ultimately affect a market. We have a word for this overstatement of a trend: "hype". So, is traditional software revenue model of licensing dead? Will all software eventually be "given away" to the end user, and supported solely by advertising revenue?
If you believe many of the pundits in the computer trade press, the answer is a resounding "yes".
What do I believe? It's a bunch of hooey.
I've got a few gray hairs, and have been in the technology business for a while. In technology, this type of hype is neither unusual nor infrequent. For background purposes, let's backtrack a bit, to few recent, major "trends", which were heralded as the "next big thing" by the mainstream technology trade press and associated analysts.
JAVA
What was predicted: Java was going to take over the world, it was a Microsoft killer. Sun Microsystems was to ascend to the position of King of the technology world.
What actually happened: There was tremendous PR hype far in advance of mature, usable technology and products. This was followed by headlines detailing the dismal failure of Java in the market, and the beginning of yet another down cycle for Sun. Java technology eventually matured and found a nice market space, although not a dominant one, and one that Sun seems to have failed to capitalize on directly. The most recent estimate I've seen of Java revenues for Sun is $10M annually.
BLUETOOTH
What was predicted: Bluetooth was going to be the next great wireless standard, blowing past the expensive and inferior 802.l1 standard. It would extend from cable replacement all the way to "smart networking".
What actually happened: Unlike Java, which people saw as proprietary to Sun (with good reason), no one company "owned" Bluetooth. It was backed by a large consortium and standards committee. Unfortunately, like Java, it was grossly oversold very early on, both on its maturity and its ultimate potential. The trade press once again declared this new technology a failure--far before the development cycle was even able to deliver stable, useful products. 802.11 became the dominant wireless networking standard. Bluetooth has found a small niche in short cable replacement, primarily in the market for hands-free devices attached to mobile phones. Newer emerging standards such as UWB threaten to usurp in many of the market niches that Bluetooth has been able to establish, and is the new challenger to 802.11 for the wireless networking space.
PEN AND VOICE COMPUTING (TAKE YOUR PICK):
What was predicted: Many times over the years, tech industry pundits have proclaimed that by year xxxx, Pens and or Voice Recognition technologies will have rendered the trusty keyboard and mouse obsolete. We will be able to engage our computing platforms in a more natural manner, much like we do in "real world" interactions. The Apple Newton was to be only the first generation of soon to be ubiquitous pen-based computers, which would dominate our everyday computing world. Later, Bill Gates told us during a stage introduction in 2001, that he was "already using a tablet PC as his everyday computer." Certainly all the experts, over the years, expected these technologies to mature and become mainstream, long before the year 2006.
What actually happened: We're still waiting. I'm guessing that Bill G.'s clunky Tablet PC is sitting somewhere in the corner of his office--gathering dust. I haven't tried to add it up, but I'm sure that many billions of dollars have gone down the drain (along with a bunch of high profile startups, and careers), trying to bring these technologies to the mass market. In the meantime, the technologies have continued to mature, and have found important niches. Pens have become useful in mobile computing, although keyboards have recently mounted a comeback in that area. Voice recognition continues to mature and has become very useful in the market for people with disabilities. The maturation of voice recognition can also be seen when you call a company using one of the newer automated attendants, as entry points to their call centers. They are much smarter and quite a bit less frustrating to use than the earlier attempts in the market, which helped coin the phrase "voice mail hell".
Article keywords: Software, Technology, Management, advertising, Strategic, Consultant, Business, offshore, Blog
Article Source: http://www.articles32.com
Phil Morettini is President of PJM Consulting, Management Consultants to Tech Companies PJM provides assistance in Management, Product Marketing and Biz Dev. More Articles at Tech Management Blog . Contact Phil at Software Management Consulting
.: New E-Business Articles
1). 5 Reasons Why Selling eBooks On eBay Can Produce Mega Bucks
There are 5 main reasons as to why selling eBooks on eBay is becoming such a booming industry and why you should get in on the act before it really explodes!
2). How To Build A Reputation As A Dominant eBay Seller
Your biggest obstacle to selling at the outset is going to be that you have no transaction history on eBay. Buyers have no reason to trust you. And the best indicator of whether or not they should trust you to deliver what you promise is your feedback rating.
3). The eBay Delivery Process - How To Deliver & Make More Money From Your eBay Auctions
You should always use quality packing materials to ensure the item reaches your customer undamaged, and you should also ship the item promptly to ensure the customer is satisfied and will purchase from you again.
4). Deciding What To Sell On eBay For Huge Profits
While the online garage sale approach can be profitable, you are likely to have more success on eBay if you specialize in a particular type of product. Your customers will learn to associate your specialty with your User ID, and will remember you when they are shopping for those types of products again.
5). How To Construct The Perfect eBay Auction Listing
The best way to learn about the best way to list your auctions is by analyzing auction listings for items that are the same or similar to what you are selling.
6). Solutions For Online Payment Processing
I did not realize that I could accept payments from my customers using an automated phone system!
7). E-Business Success Secrets Revealed!
There are six requirements essential to e-business success. Keep these in mind as you explore various home-based business opportunities.
.: Top E-Business Articles
1). What "E" Can Do For Your Business
This article takes a look at how the Internet has changed the way businesses operate and what that means for you.
2). What Is Residual Income And Can I Get Some?
What is Residual income? Residual income is what I basically live for. It’s the reason that I no longer work 9 to 5 in the forty-year plan that...
3). No one Really Makes Money Online
People think that itís easy to make money from the Internet. While the cost of setting up a company has gotten cheaper on the average compared to the Industrial Age overhead. You also have more people with the same idea to compete with now. So in exchange for less capital, you get more competition. If itís not one thing itís the other.
4). Why 99% of All Online Businesses Fail
It is a fact that 99% of internet businesses fail. According to the Department of Labor and Statistics, 75,000 new people subscribe to the Internet daily. This is a startling statistic, considering that many people around the world already have access to the internet. In line with that, 100,000 new web sites are built while 125,000 people start a home-based business per week.
5). eBay Business Success With Your Unique Creations
How to increase your eBay sales by auctioning unique products and services.
6). Niche Product Creation for Beginners
You know your strength and your opportunities. You have been on the net and found products there that are really not that hard to conceptualize. And yet you are not sure how to start.
7). One Billion Reasons To Have A Chinese SEO System
China is the fastest growing economy in the world. Yet barriers exist to American company’s full participation in the booming Chinese economy. These barriers are technology, language and communications. SEO might be one business model to use to get into the Chinese economy, but Chinese translation will be required.