Comments on: No Money Down, Zero Percent Financing http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/ Jeff Nolan's take on investment, innovation, entrepreneurship and the technology industry Fri, 19 Mar 2010 05:50:28 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: vinnie mirchandani http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/comment-page-1/#comment-13481 vinnie mirchandani Sun, 30 Jul 2006 15:16:22 +0000 http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/#comment-13481 Jeff, agree on software sales process reengineering a) could use more automation in product discovery - see thoughts here http://dealarchitect.typepad.com/deal_architect/2006/07/reengineering_t.html b) could use role rationalization in vendor sales, marketing and BD http://dealarchitect.typepad.com/deal_architect/2006/06/two_pilots_to_f_1.html Jeff, agree on software sales process reengineering

a) could use more automation in product discovery – see thoughts here

http://dealarchitect.typepad.com/dealarchitect/2006/07/reengineeringt.html

b) could use role rationalization in vendor sales, marketing and BD

http://dealarchitect.typepad.com/dealarchitect/2006/06/twopilotstof_1.html

]]> By: Venture Chronicles http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/comment-page-1/#comment-13392 Venture Chronicles Fri, 28 Jul 2006 17:05:15 +0000 http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/#comment-13392 [...] Timely post considering what I wrote this morning about software licenses going to zero. Oracle’s Support Revenue Is Its Key Driver - SeekingAlpha: Even if license revenue growth was flat, software license updates and product support revenues would continue to grow assuming renewal and cancellation rates remained relatively constant since substantially all new software license transactions add to the support contract base. Substantially all of our customers, including customers from acquired companies, renew their support contracts when eligible for renewal. When support contract renewals are negotiated, inflationary price increases are assessed, where applicable. Technorati Tags: enterprise software, Oracle Posted in Companies || [...] [...] Timely post considering what I wrote this morning about software licenses going to zero. Oracle’s Support Revenue Is Its Key Driver – SeekingAlpha: Even if license revenue growth was flat, software license updates and product support revenues would continue to grow assuming renewal and cancellation rates remained relatively constant since substantially all new software license transactions add to the support contract base. Substantially all of our customers, including customers from acquired companies, renew their support contracts when eligible for renewal. When support contract renewals are negotiated, inflationary price increases are assessed, where applicable. Technorati Tags: enterprise software, Oracle Posted in Companies || [...]

]]> By: Jeff http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/comment-page-1/#comment-13347 Jeff Thu, 27 Jul 2006 23:00:20 +0000 http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/#comment-13347 Andrew, We already spend a hell of a lot of $$ on marketing, I really can't find any evidence to suggest that this would be any more complex that what we are already doing. Re Appexchange. Bingo. Andrew,
We already spend a hell of a lot of $$ on marketing, I really can’t find any evidence to suggest that this would be any more complex that what we are already doing.

Re Appexchange. Bingo.

]]> By: Andrew http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/comment-page-1/#comment-13333 Andrew Thu, 27 Jul 2006 12:55:06 +0000 http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/#comment-13333 Jeff, Yes, but you need a hell of a lot of marketing to get them to your website in the first place. Unless. Its not customers picking out components to place in their shopping trolleys, but SAP's ISVs. In fact, I have always thought that this was Shai's plan and model. ISVs pick out the components they want, and then add to them with their own IP and skills. And, place back on the shelves any clever components they have built so that others in the club (ISVs) can buy them. Your ISVs become your de facto sales force. Speaking of which, this is the best part of Salesforce's AppXchangemodel. Jeff,

Yes, but you need a hell of a lot of marketing to get them to your website in the first place.

Unless. Its not customers picking out components to place in their shopping trolleys, but SAP’s ISVs. In fact, I have always thought that this was Shai’s plan and model. ISVs pick out the components they want, and then add to them with their own IP and skills. And, place back on the shelves any clever components they have built so that others in the club (ISVs) can buy them. Your ISVs become your de facto sales force. Speaking of which, this is the best part of Salesforce’s AppXchangemodel.

]]> By: Jeff http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/comment-page-1/#comment-13312 Jeff Thu, 27 Jul 2006 04:43:46 +0000 http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/#comment-13312 Dana, You make an interesting point, this is ultimately a packaging decision that is unavoidable given the SOA path we are on. Dana,
You make an interesting point, this is ultimately a packaging decision that is unavoidable given the SOA path we are on.

]]> By: Jeff http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/comment-page-1/#comment-13311 Jeff Thu, 27 Jul 2006 04:42:43 +0000 http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/#comment-13311 I don't know why anyone would be shocked that I would make such an argument. On one hand I think it's pretty obvious that I am prone to independent thought and more significantly I am a huge fan of open source ideology. Dennis and Vinnie, I know your criticisms against SAP but at the same time you can't look forward by only looking back... it's be like driving your car looking through your rearview mirror. I really do believe direct selling is flawed because of the extent we (all of us) rely on it. Some amount of relationship management is good, but customers should also be able to go to a website, pick out the right products and buy them. If the process were that straightforward everything would be less expensive from the simple fact that we would not have a huge cost of sales to absorb. I don’t know why anyone would be shocked that I would make such an argument. On one hand I think it’s pretty obvious that I am prone to independent thought and more significantly I am a huge fan of open source ideology. Dennis and Vinnie, I know your criticisms against SAP but at the same time you can’t look forward by only looking back… it’s be like driving your car looking through your rearview mirror.

I really do believe direct selling is flawed because of the extent we (all of us) rely on it. Some amount of relationship management is good, but customers should also be able to go to a website, pick out the right products and buy them. If the process were that straightforward everything would be less expensive from the simple fact that we would not have a huge cost of sales to absorb.

]]> By: Anshu Sharma http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/comment-page-1/#comment-13281 Anshu Sharma Wed, 26 Jul 2006 18:30:34 +0000 http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/#comment-13281 Salesforce.com.... Run! Run!! Run!!! As I said on my blog a few weeks back, the threat of co-option is the single biggest threat facing botht SaaS and open-source vendors. SAP, Microsoft, Oracle and IBM are all very smart companies that can see the future especially when its right here and has billions of dollars riding on it. Jeff at SAP and similar Jeff's at other companies are telling their emlpoyers and bosses about SaaS and Open-source and explaining the economics. It is only a matter of time before large software vendors sell software on a subscription basis and the question then becomes <b> Is SaaS only about the payment model?</b> or is there more to it- for example, cost of hardware, IT staff, support model etc. On Margins: Yes, as the industry matures the margins will get squeezed for 'core' offerings be it the OS, Database or ERP. Much like the utilities. What you will pay extra for is reliablility, business continuity, support, ease-of-use etc. Very interesting conversation... I will follow up on my blog too. Salesforce.com…. Run! Run!! Run!!!

As I said on my blog a few weeks back, the threat of co-option is the single biggest threat facing botht SaaS and open-source vendors. SAP, Microsoft, Oracle and IBM are all very smart companies that can see the future especially when its right here and has billions of dollars riding on it. Jeff at SAP and similar Jeff’s at other companies are telling their emlpoyers and bosses about SaaS and Open-source and explaining the economics. It is only a matter of time before large software vendors sell software on a subscription basis and the question then becomes Is SaaS only about the payment model? or is there more to it- for example, cost of hardware, IT staff, support model etc.

On Margins: Yes, as the industry matures the margins will get squeezed for ‘core’ offerings be it the OS, Database or ERP. Much like the utilities. What you will pay extra for is reliablility, business continuity, support, ease-of-use etc.

Very interesting conversation… I will follow up on my blog too.

]]> By: TechSpend.com Blog » Try Evolution if you are worried about the “Free” revolution http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/comment-page-1/#comment-13276 TechSpend.com Blog » Try Evolution if you are worried about the “Free” revolution Wed, 26 Jul 2006 16:13:22 +0000 http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/#comment-13276 [...] First of all, it is remarkable that some one from SAP is even talking about “free” software, as Jeff Nolan does in his post No Money Down, Zero Percent Financing [...] [...] First of all, it is remarkable that some one from SAP is even talking about “free” software, as Jeff Nolan does in his post No Money Down, Zero Percent Financing [...]

]]> By: vinnie mirchandani http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/comment-page-1/#comment-13275 vinnie mirchandani Wed, 26 Jul 2006 15:44:30 +0000 http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/#comment-13275 Jeff, I never thought I would see the day when some one from SAP used the word free! But free is the extreme ...there is so much you could be doing short term - see http://dealarchitect.typepad.com/deal_architect/2006/07/dont_cry_for_me.html Try evolution if you are afraid of the free revolution... Jeff, I never thought I would see the day when some one from SAP used the word free!

But free is the extreme …there is so much you could be doing short term – see

http://dealarchitect.typepad.com/dealarchitect/2006/07/dontcryforme.html

Try evolution if you are afraid of the free revolution…

]]> By: Dana http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/comment-page-1/#comment-13273 Dana Wed, 26 Jul 2006 14:38:58 +0000 http://jeffnolan.com/wp/2006/07/25/no-money-down-zero-percent-financing/#comment-13273 Presuming that product development follows customer dollars (at least in the long run), does the "core" product end up getting pruned of functionality to the point where it has no value by itself? ...just a razor without a blade? Is that a bad thing? Presuming that product development follows customer dollars (at least in the long run), does the “core” product end up getting pruned of functionality to the point where it has no value by itself? …just a razor without a blade? Is that a bad thing?

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