It’s no secret that software companies operate in a very competitive space where rivalry is increasingly fierce and where profit margins can be razor thin. New, smaller software companies are sprouting up each month and the leading software companies continually make strong advancements forward leveraging massive cash flow reserves. This cycle makes it difficult for the mid-sized software company to compete because (a) they don’t typically have the cash flow necessary to take giant leaps forward in the industry and (b) because they need to continually move forward to stay ahead of the smaller software companies that are vying for their slot in the marketplace. Consequently, making the jump from an unknown to a mainstream brand can prove to be very difficult for the mid-sized software company.
Finding ways to create new revenue streams and to decrease current costs is imperative to the success of companies caught in this cycle. They need to be thinking on their feet, thinking ahead and thinking creatively, all at the same time. This can be a daunting task, as any software executive will tell you.
Despite all of the challenges that face the mid-sized software market, there are several ways to create these much needed revenue streams and to decrease current costs. New advancements in technology and its use in training and development make generating these revenue streams possible.
Setting the Stage
It is almost taken for granted that when an organization purchases a software package from a reputable vendor, a certain amount of end-user, customer training will be either bundled into the purchase price or made available to them for an additional cost. If training isn’t available to the end-user customer, the learning curve on the new software package is going to be fairly steep, depending on the complexity of the software.
Typical training expense categories associated with most mid-sized software companies include: