Are we headed for a nuclear winter?

Dennis puts up a good post on the intersection of web 2.0 and the enterprise. O’Reilly actually talked about this in his keynote, that the enterprise is one of the 3 big themes he is focusing on, but I have to say that this segment will be a rude awakening for the 99.9% of companies who have been dealing with individual consumer and business users. Success in the enterprise requires, as Dennis points out, a deft touch when it comes to change management and bringing about change within the power structures that exist.

When it comes to the enterprise there will be a lot of roadkill among startups who thought they had a better mousetrap, which makes it all the more essential to build around you a good team of people who understand those markets but at the same time aren’t just going to say “we need to hire more $300k a year account execs and become a Gartner client”.

And therein lies the real crunch. While onlookers may bemoan the party bills at Web 2.0 events, the real problems for enterprise spend lay elsewhere. When I look at the margins vendors like Oracle make on legacy maintenance, it’s easy to see where fat can be cut and oxygen released for the kinds of innovation that drive value. Or what about the mad dash for governance, risk and compliance consulting projects at premium rates? Then there is the whole problem of delivering value from social networking applications.

[From Are we headed for a nuclear winter? | Irregular Enterprise |]

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Read more on Nuclear Energy, Web 2.0 at Wikinvest

1 thought on Are we headed for a nuclear winter?

  1. Jeff,

    You are %100 correct in that many of these consumer focused Web 2.0 companies will be in for a very big shock when they try to make the move to Enterprise 2.0

    Jeremiah Owyang had an article up earlier this year about the difficulties in selling into the Enterprise and how they underestimate the extreme complexity of selling to the enerprise

    My comment in that article was that the only consumer focused Web 2.0 companies that will make the transistion succesfully will be those that have a dedicated Enterprise Sales Team and those that have other revenue streams to tide them over while negotiating with prospects during the long sales cycles.

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