On returning from Educause, I noted common themes through the week. Certainly a theme causing much concern is "What management challenges does the future hold for software management?"
The sources of the concerns are several:
- Shrinking market
- The impact of patents on innovation
- Wall Street motivations that may not blend with higher education budgets (high costs)
- Lack of choice on the underlying base
- Quality issues
- The need for ongoing management
When vendor consolidation occurs, we see fewer choices among vendors, and we are less able to choose a low cost provider. Further, when one vendor has a lion's share of the market, what can we expect but higher prices? There's little viable competition in some areas.
Patents that are awarded for common processes that cross the market may further reduce market choices. The uncertainty of how patent questions will be treated in the court system may delay the entry of new vendors into the market.
If a company has made significant promises to Wall Street investors, the pressure may be on to increase pricing to meet sales projections.
