Software Pulse

Business Strategy for Software Executives

February 1, 2005

The Coming Service Revolution

More than a change in pricing or business model, software as a service is an inevitable, fundamental shift in enterprise software culture.

By Ray Lane, Kleiner Perkins

Software as a service is transforming our industry. It’s more than a new way of pricing or a business model change, it will drive a whole new mindset for enterprise software suppliers and customers. First, let me be clear about what I mean by software as a service. I’m not referring to ASPs — although they are a big part of it. I define software as a service as tying supplier revenue to a business outcome: the supplier sees the client’s end result, measures its success, and receives revenue based on the results achieved. Read more >>

A New Destination for Software Executives provides an online resource for software business strategy.

This new electronic newsletter, Software Pulse, will point you to the most compelling content on every week. Why a new Web site and newsletter? Like many of you, I got started in the software business more than 20 years ago.Read more >>

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CEO Outlook 2005

A new Sand Hill Group study finds execs bullish about the year ahead.

The software business may finally be emerging from four lackluster years, according to a new study from Sand Hill Group, CEO Outlook 2005. The study examines CEO’s opinions about what 2005 holds for the industry, as well as for their own company. The study marks the first release in a new Software Business Strategy Research Series, which aims to provide software executives with timely, actionable insight on key issues impacting the industry. Take part of the survey and see how your answers compare to that of your peers, or purchase the full report.

Deals of the Week

The latest on software M&A and VC Deals.

Get updates on software deals at Through its partnership with Venator Partners, will publish the lastest venture capital financings and merger-and-acquisition deals every week. Last week, Pragmatech Software received $8 million from Commonwealth Capital Partners (read more VC deals), and IBM bought Corio for $182 million (read more M&As).

More This Week at

SAP to Increase Workforce:
Read More Software News >>

Thomas McPherson was named CEO of Cognio:
Read more software executive moves >>

Look ahead to the year’s events >>

Review or post a software executive job opportunity >>

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Parting Thought

"Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat." - Sun Tzu

Courtesy of Malcolm Kusher, The Kushner Group


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Click here to send us your feedback. is published by Sand Hill Group, which provides investment and management advice to emerging leaders in the $600 billion enterprise software, services and solutions market. Sand Hill Group produces the Software and the Enterprise series of conferences for industry executives, and authors research reports on cutting-edge technology topics. Click here to find out more.