A Confession: I Like Enterprise Software in 2006

A number of people have asked my view on the enterprise software outlook for 2006, and so here it is: I’m actually fairly upbeat. While I still believe that the category is generally saturated, with legacy apps over-priced and new SaaS providers still evangelizing for customers more than I’d like, I think we will see IT spending recover smartly in 2006, from apps to hardware.

Pessimists predicting more gloom and doom for enterprise software in 2006 have lost sight of how some cyclical tech markets can have very good years, even when the overall trend is down.


  1. Chris Selland used your post yesterday to prod me in to writing this post…
    Look Chris, more software companies
    – SaaS, Open source, Indian, Chinese and European…the market is not dead by a long mile

  2. vendors just want you to think software is cyclical. millions of office 97 users are proving this theory wrong, coming up on a decade of resisting pointless upgrades. the vista upgrade will be another test – oddly enough many people will find that xp will still run fine the day after vista is released. they have been told by the millions of windows 2000 users out there that being an “obsolete” microsoft platform actually has its advantages – people are less likely to target it for hacks.
    dear enterprises: the software you bought four years ago works just fine.

  3. I love it! In grumpY! I have officially found someone evern more cynical about technology markets and execs than myself.