Enterprise Social Softwareas a CommodityAcquia Drupal Business SummitGleacher Center, Chicago, ILNovember 30, 2010
Commodity: a good for which there isdemand, but which is supplied withoutqualitative differentiation across amarket. Commo...
Utility: a basic service                              Source: InvestorWords.comUtility: a program or routine designedto pe...
Enterprise Social Software has    Become a CommodityProfiles            FilesSocial Network     Discussion ForumsStatus Upd...
Commoditization of Proprietary      Software Leads To:price decreases absent innovationvendor reliance on services to prod...
Proprietary v. Commodity    Software Pricing
Open Source Software CommoditiesSoftware commodities can be opensourced so others can create new valuewith them
Open Source Software CommoditiesSoftware commodities can be opensourced so others can create new valuewith them           ...
Social Software as a Utility   93% of adult Americans using social   media think that a company should   have a social med...
Social Software as a Utility58% of teens would consider theirability to access social networks atwork when considering a j...
Social Software as a Utility                                                              N = 346         Source: Symantec...
Social Software as a Utility“Social networks will be like air. Justalways there.”           Source: @BerlinerMax tweet dur...
Social Software Evolution:       What’s Next
Enterprise Social Software Market     Evolution: Social Layer
Enterprise Social Software Market Evolution: Single Function Apps
Enterprise Social Software Market Evolution: Embedded Services
Next Wave: ConvergenceSocialCollaborationPortalWeb Content ManagementSearchAnalyticsBusiness Process Management
Next Wave: Convergence
Enterprise Social Software as a Commodity
Enterprise Social Software as a Commodity
Enterprise Social Software as a Commodity
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Enterprise Social Software as a Commodity

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Enterprise Social Software functionality has become commoditized, by definition. ESS is also taking on characteristics of an utility. Open sourcing software commodities allows others to create value with them at price points lower than those charged by providers of proprietary solutions.

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Enterprise Social Software as a Commodity

  1. 1. Enterprise Social Softwareas a CommodityAcquia Drupal Business SummitGleacher Center, Chicago, ILNovember 30, 2010
  2. 2. Commodity: a good for which there isdemand, but which is supplied withoutqualitative differentiation across amarket. Commoditization occurs as agoods or services market losesdifferentiation across its supply base. Source: WikipediaCommodity: a good or service whosewide availability typically leads tosmaller profit margins and diminishesthe importance of factors (as brandname) other than price. Source: Merriam-Webster Dictionary
  3. 3. Utility: a basic service Source: InvestorWords.comUtility: a program or routine designedto perform or facilitate especially routineoperations (as copying files or editingtext) on a computer. Source: Merriam-Webster Dictionary
  4. 4. Enterprise Social Software has Become a CommodityProfiles FilesSocial Network Discussion ForumsStatus Updates BookmarksActivity Streams TaggingCommunities Mobile AccessBlogs SharePoint IntegrationWikis Analytics
  5. 5. Commoditization of Proprietary Software Leads To:price decreases absent innovationvendor reliance on services to produce revenuemarket consolidation favoring platform vendors
  6. 6. Proprietary v. Commodity Software Pricing
  7. 7. Open Source Software CommoditiesSoftware commodities can be opensourced so others can create new valuewith them
  8. 8. Open Source Software CommoditiesSoftware commodities can be opensourced so others can create new valuewith them Tomcat app server Struts app framework Lucene search Jackrabbit repository Jetspeed portal Lenya CMS
  9. 9. Social Software as a Utility 93% of adult Americans using social media think that a company should have a social media presence. 41% said businesses should use social media to solicit consumer feedback. 43% said businesses should use social media to solve consumer problems. Source: 2008 Cone Business in Social Media Study
  10. 10. Social Software as a Utility58% of teens would consider theirability to access social networks atwork when considering a job offer froma potential employer. Source: 2009 Junior Achievement/Deloitte Teen Ethics Survey
  11. 11. Social Software as a Utility N = 346 Source: Symantec “Social Networking at Work” Survey, June 2010
  12. 12. Social Software as a Utility“Social networks will be like air. Justalways there.” Source: @BerlinerMax tweet during Webciety, March 2010
  13. 13. Social Software Evolution: What’s Next
  14. 14. Enterprise Social Software Market Evolution: Social Layer
  15. 15. Enterprise Social Software Market Evolution: Single Function Apps
  16. 16. Enterprise Social Software Market Evolution: Embedded Services
  17. 17. Next Wave: ConvergenceSocialCollaborationPortalWeb Content ManagementSearchAnalyticsBusiness Process Management
  18. 18. Next Wave: Convergence
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