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Why proprietary enterprise software costs sooooo much

Moving up the Stack – Forget about Linux on the desktop. The next stage of open-source adoption will occur in enterprise software. An article by Erick Schonfeld, some months ago on Business 2.0. Fab observation:

Rather than being used to improve products, an astounding three-quarters of new license revenue in the enterprise software industry is instead plowed right back into sales and marketing.

That means, as Augustin likes to point out, that the business model of a traditional enterprise software company is effectively to charge customers a ton of money to convince those same customers that they need the software in the first place.

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