Enterprise Opportunities

businessinsider.gifI have long said that I think many mobile opportunities lie outside the traditional consumer app store model. Hence, I was interested to read an article over the weekend that quotes Sequotia’s Jim Goetz (a VC) as saying "It’s shocking we don’t see more engineers and entrepreneurs interested in enterprise".

and…

"Twice as many enterprise startups have become billion-dollar companies compared to consumer startups"

yet…

"At Sequoia, upwards of a hundred entrepreneurs a week present and if we’re lucky, maybe a dozen of them are focusing on the enterprise"

There was a time, pre-iPhone, when emphasis was on the enterprise. For example, Nokia put a lot more effort into chasing the enterprise than enabling consumers to easily download and use apps. Along came the consumer targetted iPhone and the emphasis changed. Microsoft’s change from Enterprise friendly Windows Mobile to consumer driven Windows Phone confirmed the trend.

Enterprise is, perhaps wrongly, perceived as being a boring area. However, enterprise apps tend to do a lot more than the majority of consumer apps that just display information. Enterprise apps tend to do more with the information and rely much more on phone features. This actually makes inventing, designing and developing enterprise apps more interesting.

Enterprise apps also tend to have a much longer life. They can be used every day for years. Development isn’t just a one-off event and instead products tend to evolve over time providing a long term revenue stream.