Software Pulse

Business Strategy for Software Executives

July 16, 2007

Brian Zanghi

10 Lessons from a SaaS Transformation

After three years of hard work, one software CEO shares best practices for a successful transition to the SaaS model.

By Brian Zanghi,  Pragmatech

When I reflect on the experience of transforming Pragmatech from a traditional enterprise software vendor to a Software-as-a-Service (SaaS) company, the expressions “extreme makeover” and “creative destruction” spring to mind. But the reality is that even those phrases don’t quite capture the full impact of the undertaking.

After three years of transition, we are beginning to absorb some of the lessons learned as we approach the culmination of the transformation process. Based on our experience, here are some guidelines that might help other software vendors considering adopting the SaaS model improve their chances of success.


Last Chance to Register for Enterprise 2007

The 10th anniversary conference takes place next week!

There are only a few invitations left for the software industry's most exclusive event, taking place next week in Pebble Beach, Calif., from July 22-24, 2007. For ten years, software CEOs, investors and thought leaders have gathered at the annual Enterprise conference to candidly share strategies and discuss the future of the industry.

Enterprise 2007 will be the tenth anniversary gathering and will feature some of software's most compelling speakers: Scott Cook, Dave DeWalt, Bill Janeway,  Ray Lane, CK Prahalad, Tony Zingale, John Wood - and more (see the complete agenda.) Don't miss this opportunity to network, golf and celebrate with this elite group of visionaries. Request your invitation today!

GPLv3 Sabers Rattle

The release of GPLv3 has fueled the simmering battle between open source, Microsoft and SAMBA. Guy Smith of Silicon Strategies Marketing says a “bar fight” is brewing and Microsoft is ready to punch. Read why and place your bets on the winner in this week’s post to the Blog on open source.

The 11g Release: Bored but Loving It

Compared to Oracle’s last release, the 11g festivities were subdued. But Tony Baer of onStrategies says that’s a good thing. Read why in this week’s post to the Megavendor Watch blog on

Publish Your Perspective!

The Blog wants your opinions. Send your thoughts on the enterprise software industry to and we’ll publish them in our blog.

How Businesses are Using Web 2.0

By and large, executives are satisfied with their previous investments in Internet technology, and most are investing in trends that promote automation and networking online. Read more results from this McKinsey Global survey in this article from The McKinsey Quarterly.

Relive the Highlights from Software 2007

All videos and podcasts from the general sessions of Software 2007 and the Innovation Showcase theatre are online now. Don’t miss the lively panels – the CIO panel, the innovation panel and “Communities and Corporations” panel. Visit the Software 2007 post-conference site and download the latest strategic insight from the software industry’s leading executives.

News Update: One Hot Summer

The market heats up after a long, cool period; plus, Oracle debuts 11g, Microsoft talks “Cloud” and VMware values its IPO. Read these stories and more software news of the week in the latest Software News Summary.

Poll: America as Tech Leader?

A new study says the U.S. remains the top country in terms of IT industry competitiveness.
Take our Pulse Poll >>

Last week, readers gave their opinions on whether software IPOs are making a comeback.
Give us your opinion and see the results >>

More at

The merging of SOA and Web 2.0.
Read the most important enterprise software industry news of the week >>

Verdiem receives $8.3 million.
Monitor the latest software venture capital deals >>

Motorola buys Leapstone Systems.
Size up last week's software M&A deals >>

Critical Path names Mark Palomba as CEO.
See who’s made it to the top in our list of recent software executive appointments.

Send us your feedback on this newsletter and the site.

Parting Thought

"The problem in my life and other people's lives is not the absence of knowing what to do, but the absence of doing it."
 Peter Drucker

Courtesy of Malcolm Kusher, The Kushner Group