Market for Lemons and Enterprise Software

http://lists.canonical.org/pipermail/kragen-tol/2005-April/000772.html

A couple of interesting points are made here - mainly that there is no difference between so called enterprise software and other forms of software except the manner of the sales process. Enterprise software is sold by (non-technical) people to primarily non-technical people who then enforce its use throughout and organisation

This sets up a perfect market for lemons (http://en.wikipedia.org/wiki/The_Market_for_Lemons) - as the non-technical manager cannot tell the difference between effective software and non-effective software they also cannot tell the difference between good and bad consultants / sales people. So eventually the good second hand cars (sorry good enterprise software) is removed from the market, as are the good sales people.

This also provides for the "no-one ever got fired for buying IBM" maxim. THe best way to defeat the market for lemons is to introduce trusted brands (ie Indian Milk solution) - if IBM is a trusted brand then buying it works.

Sadly however it seems IBM is becoming a sales force that is pushing faceless software. The IBM brand will lose out.


Fascinating insight I feel.