LucidEra CEO Ken Rudin did stints at salesforce.com, NetSuite and led Siebel's OnDemand business unit. Speaking on a panel of the Office 2.0 conference, Rudin shared his view of why the established companies, such as Microsoft, Oracle and SAP, are slow to adopt the business models based on demand and open source technologies.
"In reality, they want to enter a market to create speed bumps for competitors. When I ran the Siebel OnDemand group, the purpose was to stop salesforce.com, but we didn't succeed as well as we would have liked," Rudin said. "If you don't do anything, you cause a slow death; if you react, you create an internal civil war between the new and the old models, and as a result you die faster."
It will be interesting to see if the entrenched enterprise software companies can overcome their civil wars and focus more attention on creating on demand services, not just products. If they don't, they will end up paying billions for the maturing startups that eroded their market share or they will slowly fade away.