Software Pulse

Business Strategy for Software Executives

July 7, 2008

Bob Calderoni

A Checklist for Change

After morphing Ariba’s on-premise business to an on-demand model, the CEO shares strategies for overcoming skepticism and resistance in order to put a company on a new and exciting path to success, whatever it may be.

By Bob Calderoni, Ariba

When the tech bubble burst, Ariba, like many companies, was in a bit of turmoil. It was very clear that if and when the market rebounded, a new way of doing business would be required. Companies would ultimately demand greater flexibility in the way they purchase and deploy software. And if we were to emerge from the downturn, we had to be able to deliver that. It wasn’t going to be easy – wholesale change never is. But as we saw it, we had no choice. On-demand was not only the future of software, but of Ariba.

In 2005, Ariba, Inc. launched an aggressive plan to transform itself from a traditional licensed software company to an on-demand provider. No company its size had ever willfully given up the addiction to license revenue and survived. But many companies today are at a similar crossroads and must make the tough decisions that can make or break their business.


One-Stop for SaaS Insight

The SaaS/On-demand topic page compiles all of the opinions, analysis and news you need on one page. And by clicking “Topics” on the top navigation bar on, you’ll receive a drop-down menu of all our other Topics Pages: Open Source, Offshoring, and M&A. Need more focused insight? Email us with ideas for more Topic Pages.

The BEA Roadmap Revealed

After much anticipation, Oracle detailed its product strategy related to the BEA acquisition. Tony Baer explains why the strategy is a conservative one but one that has paid off before in this post to the Blog on M&A.

The Right Way to Test Software

Savvy vendors manage the cost and risks associated with software testing even as they keep their client’s goals in mind. Shanthi Sridhar of Cognizant Technology Solutions explains why pre-production testing is essential and offers a framework for testing best practices in this post to the Blog, Enabling Innovation.

Publish Your Perspective! wants your opinions. Send your thoughts on the enterprise software industry to editor, Maryann Jones Thompson ( and have your opinions published on our site.

The Next Step in Open Innovation

The creation of knowledge, products, and services by online communities of companies and consumers is still in its earliest stages. Who knows where it will lead? Read the possibilities in this article from The McKinsey Quarterly.

News Update: Anti-Independence Day

If you can’t beat ‘em, partner with ‘em; plus, Microsoft fires warning shot with disruptive technology, Mac making Vista waves, U.S. economy is affecting software spend and Microsoft tries again with Yahoo. Read these stories and more software news of the week in the latest Software News Summary.

Poll: Drivers of Change?

Some software companies can make the business model switch. Some can’t. What’s the most important factor that leads to a transition’s success or failure?
Take our Pulse Poll >>

Last week, readers gave us their opinion about the importance of DRM solutions.
Give us your opinion and see the results >>

More at

Read the most important enterprise software industry news of the week >>

Monitor the latest software venture capital deals >>

Size up last week's software M&A deals >>

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

Only the wisest and stupidest of men never change.”
— Confucius

Courtesy of Malcolm Kusher, The Kushner Group



Cognizant is a global provider of IT, consulting and business process outsourcing services. Cognizant delivers a better Return on Outsourcing via our single-minded passion to making our customers’ businesses stronger.
Find out more.


Software Pulse is a publication of, the online resource for software business strategy.

To subscribe,
click here.

To unsubscribe, see the bottom of this email.

Send us your feedback,
click here. 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.

To remove yourself from this list, click here.