A great mix of panelists for this one: Marc Benioff of Salesforce.com, Jeremy Allaire of Brightcove, Leonard Liu of Augmentum, and Eric Rudder of Microsoft. Did Benioff face resistance to his business model? Yes, the enterprise market has a lot of resistance to change, he said. But finding the right app (not just a platform) was the key for Salesforce.com. “Build it, let people use it, then pop the top and let them build on it. Our AppExchange service now has 200 apps, and we’re adding 5 to 10 more per week.” Jeremy Allaire’s startup is based on “a direct model for multimedia content.” (Note he didn’t just say video.) “The distribution models of old are quickly eroding.” he said. “We’re actually allowing 031406busmodels individual websites to do global broadcasting.” What’s interesting now, Jeremy said, is that his firm is encountering an incredible willingness to experiment” (presumably by the traditional video distribution businesses, and by video producers). Why? “Out of fear, to pursue new revenue opportunities, just to stay out in front.” Esther asks what friction he’s seeing…. “It’s similar to the early days of e-commerce,” he said, “where manufacturers worried about going direct, then ended up discovering that blended distribution worked best. It’s the same now.” When asked what challenges he sees, Leonard Liu of Augmentum, whose firm is providing software development services for U.S. firms via a staff of 450 in China, says the challenges are many, including language. “But China is the next big player” in this space, he said. “We’ve seen in India what can happen. But it takes a true understanding of China — for example, the young people are different than the old — as far as how the cultures work together.” Liu said 60% of what his firm does is total product development, “from beginning to end.” Intel is one big customer. And how does Microsoft react, now that it isn’t such a target, Esther asked of the fourth panelist. “How can we marry all this friction-free software to the Windows environment,” was his obvious first answer. “But we see many opportunities — advertising, subscription models, Office Live. This is an exciting time, now that we’re unleashed to an extent. We think we’re responding well to what people want and don’t want.”

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