We all have “enjoyed” working with some software that was purchased because “You can’t get fired because you bought…”. This software is known for being the industry leader. Not because it is easy to use, easy to integrate, easy to scale, easy to do anything with,… It often is quite the opposite.
So why do people buy it? First of all it is easy to find experts. There are people out there that have been “enjoying” working with this solution for the last 10 years. It is relatively stable and reliable. There is a complete solution for it with hundreds or thousands of partner solutions. People have just given up on trying to convince their bosses on trying something different.
5 steps to disrupt the Dinosaur
Step 1: the basic use cases
The Pareto rule. What are the 80% of the use cases that only reflect 20% of the functionality.
Step 2: the easy & beautiful & horizontally scalable & multi-tenant clone
Make a solution that reflects 80% of these use cases but make it beautiful and incredibly easy to use. Use the latest horizontally scalable backends, e.g. Cassandra. Build multi-tenancy into the software from day 1.
Step 3: make it open source
Release the “improved clone” as an open source product.
Step 4: the plugin economy
Add a plugin mechanism that allows others to create plugins to fill in the 20% use case gap. Create a marketplace hence others can make money with their plugins. Make money by being the broker. Think App Store but ideally improve the model.
Step 5: the SaaS version
Create a SaaS version and attack the bottom part of the market. Focus on the enterprises that could never afford the original product. Slowly move upwards towards the top segment.
The expected result
You will make have a startup or a new business unit that will make money pretty quickly and will soon be the target of a big purchase offer from the Dinosaur or one of its competitors. You will spend a lot less sleepless nights trying to make money this way then via the creation of the next Angry Bird, Uber 0r Facebook clone.