Message Font: Serif | Sans-Serif
No. of Recommendations: 1
"Either one has an excellent understanding of a niche or one has to pick the top of the heap but in such a widely distributed industry that top of the heap is elusive indeed."

Agreed, the small software area is tricky. In general, most of these players deal in transactional software. Basically administrative functions like accounting, enrollment, billing, etc. and then integrating them.

The problem is that this kind of software is pretty easy to do, so there's a lot of competition which means the margins aren't that great. An interesting case study is Salesforce. They pushed way ahead of everybody in the sales management area by basically going full bore marketing. Even now with all their growth, I'm not sure how much they actually book in real profit but last I looked their marketing and sales expense is huge and probably needs to continue to grow.

In cases like Ebix, and other small transactional software co's, a big advantage is actually being able to test the product and know the competition and the relative pricing.

So, anybody out there ever used an Ebix product or competitors?
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.