Jason at Signal vs. Noise has written a great post about the future of software companies. As he points out:
"The most innovative software designed over the next 10 years will 1. be web-based, 2. will come from small teams, 3. will come from self-funded companies, and 4. will be for the “side-business” or 1-10 person business market."
I couldn't agree more. I think the stress here should be on "innovative." I think we can already start to see this happening, with apps like del.icio.us. And the "long tail" is why these companies will succeed.
"When you think small business, think 1-10 people not 50-100. There’s an endless supply of 1-10 person companies. Who cares about the Fortune 500? It’s time to care about the Fortune 5,000,000. Forget the enterprise market. Forget the mid-sized company market. Build for the smallest of small companies and you’ll find a thirsty, neglected market waiting for you."
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