The business of software is now marketing (which includes design). - Seth Godin

What’s the business of software?

At its heart, you need to imagine (and then execute) a business that just happens to involve a piece of software, because it’s become clear that software alone isn’t the point. There isn’t a supply issue--it’s about demand. The business of software is now marketing (which includes design).

So, the questions I’d ask:

• Who can I reach?
• Is the product so remarkable that they will talk about my product with their peers?
• Can I earn and maintain permission to continue the conversation?
• Once they learn about the utility offered, will they pay for it?

When building a software business that uses the network effect, I’d ask:

• Does the connection this enables create demonstrable value?
• Is there an easy and obvious way for someone who benefits to recruit someone else to join in?
• Is it open enough to be easy to use but closed enough to avoid becoming a zero-cost commodity?

What you’re looking for in a connected world is a piece of software that sits in the middle of a sphere, enabling the user to make valuable connections, to build utility in a way that they couldn’t without you. That’s worth paying for and not worth switching out of.

http://sethgodin.typepad.com/seths_blog/2010/10/the-business-of-software.html