Comments on: Discussion: The Credit Crunch and IWMS http://www.iwmsnews.com/2009/02/discussion-the-credit-crunch-and-iwms/ Intelligent Workplace Management Tips and News Wed, 10 Mar 2010 00:35:33 -0400 http://wordpress.org/?v=2.9.2 hourly 1 By: Steven Hanks http://www.iwmsnews.com/2009/02/discussion-the-credit-crunch-and-iwms/comment-page-1/#comment-58 Steven Hanks Wed, 04 Feb 2009 19:42:32 +0000 http://www.iwmsnews.com/?p=718#comment-58 Marty, your last phrase is definitively spot-on. To me it all depends on delivering real business value to a customer! It's the ability to execute that ensures your feature funding! I'd love to hear what other readers think of this thesis. Marty,

your last phrase is definitively spot-on. To me it all depends on delivering real business value to a customer! It’s the ability to execute that ensures your feature funding! I’d love to hear what other readers think of this thesis.

]]> By: Marty Chobot http://www.iwmsnews.com/2009/02/discussion-the-credit-crunch-and-iwms/comment-page-1/#comment-57 Marty Chobot Wed, 04 Feb 2009 18:55:55 +0000 http://www.iwmsnews.com/?p=718#comment-57 I don't know that I'd call VC a threat. I'd say that companies that have overstated their ability to deliver business results to their investors are the real threat. VC’s are often much maligned in the software biz but my personal experience has been that they’re thoughtful business people that care about both their portfolio companies and their partners. Clearly, they realize the economy is in trouble but they’re also looking for real opportunity now. However, if software companies set unrealistic expectations about the sales cycles or complexity of selling in this market, they’re also setting themselves up for trouble with their VC. Another area that can cause trouble is expectations about the potential synergies from M&A activity. Unless the M&A is thought through carefully from a customer, technical and market perspective, the synergies won’t be realized and a lot of cash gets burned. At the end of the day, regardless of the source of funding, it’s the companies that can deliver real value to the customer in a reasonable timeframe that will succeed. If you can’t execute, you’ll find you won’t be getting cash from investors OR customers! I don’t know that I’d call VC a threat. I’d say that companies that have overstated their ability to deliver business results to their investors are the real threat. VC’s are often much maligned in the software biz but my personal experience has been that they’re thoughtful business people that care about both their portfolio companies and their partners. Clearly, they realize the economy is in trouble but they’re also looking for real opportunity now.

However, if software companies set unrealistic expectations about the sales cycles or complexity of selling in this market, they’re also setting themselves up for trouble with their VC. Another area that can cause trouble is expectations about the potential synergies from M&A activity. Unless the M&A is thought through carefully from a customer, technical and market perspective, the synergies won’t be realized and a lot of cash gets burned.

At the end of the day, regardless of the source of funding, it’s the companies that can deliver real value to the customer in a reasonable timeframe that will succeed. If you can’t execute, you’ll find you won’t be getting cash from investors OR customers!

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