Software Pulse

Business Strategy for Software Executives

March 12, 2007

Treb Ryan

Are You Really a SaaS Vendor?

Here’s why the most successful SaaS vendors think of themselves as business-to-business Web companies – not software companies.

By Treb Ryan, OpSource

Most software companies think on-demand applications are a replacement for traditional business software.

They couldn’t be more wrong.

Sure, these software-as-a-service (SaaS) applications are sold as a service and paid for per-transaction, but they are developed, sold and delivered in the same manner as traditional licensed software.

The most successful software-as-a-service (SaaS) companies do not think of themselves as software companies selling software on-demand, but as Web companies with business users accessing a service over the Internet. These companies realize that to effectively start and grow a SaaS business, they need to act more like a consumer-based Web company than a traditional enterprise software company.


New Podcast: India Ascending’s M.R. Rangaswami and globe-trotting industry veteran, Bruce Richardson of AMR Research discuss and debate their recent trip to India and the Nasscom conference. Click here to listen and gain on-the-ground insight about the latest changes in India.

Tech VCs to Get Gobbled?

M.R. RangaswamiCould private equity firms be ready to start buying technology VC firms? That’s what Sand Hill Group’s M.R. Rangaswami thinks. MR spoke to Optimize magazine’s Brian Gillooly about what investment insights may come out of the Software 2007 conference. Click here to hear the full podcast.

Consolidation: The New Mediocrity

As Oracle swallows Hyperion and sets off a wave of buying in business intelligence, Erik Keller of Wapiti LLC wonders why software makers are pursuing a 100-year-old strategy of consolidation. Read his argument for why consolidation is driving down software product quality in this week’s post to his Blog, The Software Critic.

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.

Find Out the Latest on EMC’s Strategy

EMC’s CTO and senior VP, Jeff Nick, will deliver a keynote address at Software 2007. Hear what Jeff says the highly-active acquirer and growing software powerhouse has in store for the coming year. Register now to attend the conference May 8-9 in Santa Clara, Calif. and qualify for a special rate which enables you to bring 3 colleagues at no extra cost!

Making CEOs into Public Leaders: A McKinsey & Co. Survey

US business executives say they should play a much greater role in shaping debate about sociopolitical issues and leading efforts to effect change. Read the latest survey from McKinsey & Co. in this article from The McKinsey Quarterly.

News Update: A Mini Y2K?

IT and the media fret over the early onset of Daylight Savings Time; plus, Dave Dewalt defects, Gates testifies to improve U.S. competitiveness, Oracle modifies its pricing and Ingres goes to India.  Read these stories and more software news of the week in the latest Software News Summary.

New: Real-time Software M&A and VC Feeds has partnered with VentureDeal to deliver the latest deal news to its readers. Visit the Finance page to link to the latest software-related venture capital investments and software M&A deals, including details on the dealsí participants and terms.

Poll: Does Consolidation Lead to Mediocrity?

Some industry observers like Erik Keller believe consolidation is stifling innovation and breeding mediocrity in software products. What do you think?
Take our Pulse Poll >>

Last week, readers gave their opinions on which business intelligence vendor would be acquired next. What do you think?
Give us your opinion and see the results >>

More at

No big problems from early Daylight Savings Time change.
Read the most important enterprise software industry news of the week >>

Adaptive Planning receives $7.5 million.
Monitor the latest software venture capital deals >>

Open Text buys Momentum Systems.
Size up last week's software M&A deals >>

Juniper Networks names Michael Lawrie to the board of directors.
See who's made it to the top in our list of recent software executive appointments >>

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Parting Thought

“Once a new technology rolls over you, if you're not part of the steamroller, you're part of the road.”
–Stewart Brand  

Courtesy of Malcolm Kusher, The Kushner Group