For example, my job -- the software is the just the control part of a complete package that we build to solve a customer's problem.

Software is a very broad world; there is the need for software skills (programming, analysis, DBA, etc) in all kinds of companies, despite outsourcing trends.

So start looking, and be flexible. Oh, and yes, connections are very helpful -- it's definitely very common here in Silicon Valley (guy moves to new company, and when they need to hire, recommends his friends). I've been impressed with the interns we've had, too.

Tony