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Will the enterprise market spend significant IT budget on Windows Vista in 2007?

Yes

No


2005: A Transition Year for Enterprise Software
continued... page 2


Most Exciting Moments
The most exciting moment for us in 2005 happened at our annual UserForum where large, global service providers, enterprises and managed service providers presented first-hand about the adoption, usage and effectiveness our software is providing them.

These companies talked about the business opportunities and support challenges brought on by the rapidly changing blend of technologies impacting professional and personal lifestyles, and the need of enterprises and service providers alike to cost-effectively provide high quality service delivery to meet the new technical requirements of end-users.

SupportSoft customers talked about how our service automation software is helping them to increase customer satisfaction, drive down support costs and help usher in a new era of converged devices and technologies in the home and at work.

If Time Comes Back…
I would have invested more in what's turned out to be a high growth area for SupportSoft - our international digital service provider market. Fortunately, we have gained tremendous momentum in the past year, announcing deals with customers such as Casema, TDC Cable TV, Auna, Net Lynk, TV Cabo and Sunrise, and strengthening partnerships with companies such as Thomson.

Expectations For 2006
We see convergence as a key trend that will help drive demand for our solutions. By "convergence" in this example, I mean the intersection between wireless and wired solutions delivery, IP-based applications, VoIP and IPTV - all enabled by a pervasive broadband backbone. Consequently, the telco and cable industries will continue to revamp their infrastructure, including increased deployment of fiber to the home. For us, this form of convergence will drive demand for automated service activation, remote problem diagnosis and resolution, home gateway management and ongoing customer service automation. In all cases, companies are looking to significantly reduce OPEX, efficiently scale to demand and ensure customer satisfaction.

The Better Year - 2005 or 2006?
As CEO of a publicly traded company I can't make predictions on SupportSoft's performance. I can say, however, that I'm excited about the prospective market growth associated with the digital service provider and managed service provider segments of our business. In particular, we intend to focus efforts on maximizing the strategic value of our managed service provider customers and partners.

Obviously no one can ensure that the anticipated growth will actually occur though the signs are positive. Presuming the growth accelerates, our challenge will be to harness our resources and execute flawlessly to gain advantage for our customers and our shareholders. On the enterprise side, we will be more cautious in our expectations and related investments until we get a clearer sign on which direction the market is moving.

Technologies In 2006
We believe that service automation software is just hitting its stride. In a world where products, service and technology are quickly commoditized, customer service will continue to emerge as a key competitive differentiator. Software that can automate this process will add value to the customer experience and can help customer service to achieve new levels of customer satisfaction for the companies that take this path. Moreover, it can reduce the cost of service delivery. More broadly, we can expect to see even wider adoption of open source solutions, hosted software delivery, fulfillment of the requirements for the digital home, hot spot ubiquity and much, much more. The energy and enthusiasm for new technologies is back. Enterprising software companies will adapt to the new realities, tweak their business models if needed, and harvest the benefits.



Radha Basu has served as President and Chief Executive Officer of SupportSoft since July 1999, and was appointed Chairman of the Board in January 2001. She worked at Hewlett-Packard, a computing and imaging solutions provider company, from November 1978 to January 1999, and held various general management positions, most recently General manager of the Electronic Business Software organization. Radha also serves as Chairman of the Board of directors of SEEC, Inc., an eBusiness solutions company. She holds a BS in Engineering from the University of Madras, a master's degree in Electrical Engineering and Computer Science from the University of Southern California and is a graduate of the Stanford University executive management program. For article feedback, contact Radha at radha.basu@supportsoft.com

     






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