I’m starting to feel that we’re about to enter interesting times.
This far, the history of the software industry has been relatively straightforward: growth of computer usage, growth of PCs, growth in internet usage.
All of which has been very good for software developers, with lower entry barriers, more customers and bigger opportunities.
Yet all of this may be starting to change, with the past few years seeing a number of market-changing developments.
We’re already used to…
1 – “Where can I buy it”
Your customers no longer have to buy out-of-date software from retail outlets, paying for shelf space, in-store advertising, packaging, delivery.
2 – “I want it now”
When your customer hears about your software, they can buy, install and start using it in less time than it takes to find a parking space outside a PC superstore.
3 – “Other options?”
Customers are no longer restricted to the number of applications stocked by their supplier. Choice is a great thing!
What’s started to happen:
1 – “Why should we pay that much?”
Thanks to Apple, customers are starting to realise that you can buy very good software for less than $1.
Yesterday’s PC bargain at $39.99 suddenly looks overpriced.
2 – “What cloud?”
The Cloud has become a reality. Like all great technologies, its main strength is that people don’t know it’s there.
3 – “Web in hand”
It wasn’t so long ago that accessing email on your mobile phone was cutting edge. Today my Dad has the internet on his phone.
What’s starting to happen:
1 – “The playing field is level but the rules are changing”
Apple’s App Store allows software developers to reach a huge number of people. But the hoops to jump through are awkward and restrictive. And you can forget your old pricing model.
2 – “It’s getting hot in here”
Go back a decade and selling software online was an opportunity to reach the world. Today, however, you’re also competing with the world. Standing out from the crowd has never been so difficult and more important.
3 – “The dumb get dumber”
AdWords is no longer an optional extra. You and your competitors are all doing it, and competition is intense. Unfortunately most AdWords account managers waste money and don’t realise it. You’re competing against people who spend too much, so your costs are higher, and your skills need to be sharper than ever before.
And so:
This isn’t the time to sit back and see what happens. You’ll get splinters from sitting on the fence.
The progressive software company needs to be tapping into all of the new opportunities long before they become the norm.
The industry is bloated and natural selection is underway. Make some noise.
