Investing in the enterprise sector is flourishing, with a notable shift from consumer to enterprise technology. A surge in mobile usage and cloud-based solutions has led to a new wave of enterprise software, disrupting traditional industries. Companies are now more willing to pay for software that solves specific problems, leading to the rise of ‘vertical software’ companies. These firms are targeting niche markets, such as construction or agriculture, and are experiencing rapid growth.
Despite the boom in enterprise software, it isn’t without challenges. The sales process can be lengthy and complex, requiring a deep understanding of the customer’s needs and industry. Moreover, the competition is fierce, with many companies vying for the same customers.
Yet, the rewards are substantial for those who can navigate these challenges. Enterprise software companies are often more profitable than their consumer counterparts, with higher margins and more predictable revenue streams.
The enterprise software landscape is evolving rapidly, with new technologies and business models emerging. As such, investors need to stay abreast of these changes, understanding the trends and opportunities that lie ahead. The shift to mobile, the rise of vertical software, and the challenges of selling enterprise software are all key factors shaping the future of this sector.
Exciting times lie ahead for enterprise software, and investors are well-positioned to capitalise on this opportunity if they can understand and navigate the complexities of this evolving landscape.
Go to source article: https://medium.com/@IndexVentures/investing-in-the-enterprise-in-2015-1f6ca465758a