Goldman Sachs just came out with a report on Tech VC trends – amongst the highlights, is (surprise, surprise!) the reduction in enterprise software investments, and increase in web/mobile and global (india/china) investments.
It makes me wonder if these two put together create a blind spot for VCs. Enterprise automation in developing countries like India and China is fairly nascent and fast growing, compared to a mature market like US. And global solutions dont always fit. We have seen interesting companies that are riding this localization need in emerging markets. Investors will need to take local calls on sectors that they want to play in.
Another interesting part of the report is that enterprise space may see a resurgence, especially in hardware area, on back of recent IPOs in that space.
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Kris, I doubt if enterprises use VMware for production. It has many technical problems including a very poor I/O stack. Many startups like http://www.xsigo.com or http://www.nuovasystems.com are trying to solve the same.
VMWare is used heavily for testing, deployment , sand-boxing and data center web hosting.
Enterprise space,
Yup, i faced a it personally. Web 2.0 has killed may enterprise companies 🙂
But since you mentioned, I must accept VMWare is one of the few companies, startups should love to hate. not because of the technology but the way they used Web to sell. Let me give some Gyan here …
VMWare was one of the first few enterprise product companies which did not have a sales force till 4th year of its inception. They marketed the product though web and offered consultancy.
Before VMWare IBM used to charge $5m for providing virtualization solutions and consultancy.
VMWare, emphasized on making the technology so simple that they don’t have to do door to door deployment and that helped them to cut the product cost and made virtualization a house hold affair.
It was also one of the first few companies to offer Open prices through Web.
– J
Krish, very insightful post on virtualization – shows your knowledge depth! Thanks!!
This is the kind of stuff the makes it worth coming to Venturewoods (not the plugs to peoples’ companies and blogs 🙂
I have no doubts about resurgence of enterprise solutions space.
I can readily think of Virtualization space (especially after the stunning success of VMware IPO). Virtual infrastructure management is an attractive market thanks to two drivers. First, is the very widespread uptake of virtualization – not only in test and development, where it’s been strong for nearly a decade, but increasingly in production environments also. Organizations are embracing virtualization because it can solve many problems. It can reduce the number of physical servers needed to meet given service levels, thus drastically cutting power, cooling and real estate expenditure. It can centralize administration, not only of servers, but of desktop workspaces, yielding almost equally drastic savings. Thanks to advanced features like live migration, it can improve availability, and even promises to end scheduled downtime for maintenance.
Any one of these features would be enough to get organizations to deploy virtualization. All of them together have created a phenomenon. But virtualization isn’t a panacea, and even as it is solving the problems described above, it can create a new class of problems for which tools and processes are only now emerging. Known headaches include strictly limited availability of skilled staff, opportunistic ISV licensing strategies, certain technical constraints on server consolidation and so forth. These are mostly human issues. But virtualization also creates headaches that are amenable to technical approaches like automation, performance monitoring and optimization, security and policy enforcement where our startups can get nimble and be creative. It is this second class of headaches that the virtual infrastructure management players are pinning their fondest hopes on.
If our entrepreneurs are looking for lucrative problems to solve, they just have one.
could not find it on the web; looks like they haven’t posted it. Have a copy that I am not sure is allowed to be shared – another article pertaining to it on TMCNet.
Where can one find this report?