- What’s different about the social business category is there are multiple entry points for a sale. The sale could come from IT, Sales, Marketing, Customer Support, HR, Corporate Communications or more often than not a Business Unit. < Key learning: this is different in software investing. Buyers abound.
- The Social Business story has reached a tipping point. No longer are sales “missionary” sales. There are line item budgets for social business software, and large RFPs are on the market from F1000 companies who are investing in these platforms. Further, every software company is now incorporating social into its product suite, albeit mostly still relegated to “silo” functional software for specific departmental needs (Sales, HR, etc.)
- Social Software is not a “replacement” category of software like Salesforce was with Seibel or Workday is with various ERP modules. This is not a cloud v. on premise alternative. (Jive sells both on and off premise).
- The deals are larger. Jive closed three million dollar plus deals in the fourth quarter of 2011. Large institutions in various industry segments (PwC, Thomson Reuters, and Ace Insurance) chose Jive to introduce a new way of working to their firms.
- Social Business software delivers real value to every knowledge worker in the enterprise. The market opportunity exceeds that of traditional enterprise software which typically serves a discrete business unit function (manufacturing, HR, finance, sales, etc.).
Following on from my post yesterday, my Dachis Group colleague Susan Scrupski has posted some points (from a Jive investor call) about the value of the social business software market. I’m sharing this not because I think you are necessarily interested in how much money companies might make from “social business software”, but rather because its an indicator of what defines “social business” and how it is different from other technology driven initiatives.