Of course, if by saying "enterprise software", you mean "a market no one else is interested in, and thus I can build any old technology I want and people will h

Of course, if by saying "enterprise software", you mean "a market no one else is interested in, and thus I can build any old technology I want and people will have to buy mine", then sure. No matter where you are, you'll do fine. But what happens when an agile web-based competitor arrives who are using modern techniques and have hired the best nerds they could find in the technology center where they're based (which are, let's face it, better than the nerds you can find in a non-tech-focused city)? Isn't it presumptuous to think that one's city would dictate one's knowledge of "modern" technology? If you're going to stagnate, you'll do it wherever you live. I'll concede the point about local staffing but, again, if you've got your team together and build your startup so that it's profitable, you'll have no problem hiring when you need to.