Software Pulse

Business Strategy for Software Executives

November 11, 2009

Byron DeeterBessemer’s Top 10 Laws for Cloud Computing and SaaS

Running an on-demand company means abandoning many of the long-held tenets of software best practices and adhering to these new principles.

By Byron Deeter, Bessemer Venture Partners

At Bessemer Venture Partners we fundamentally believe that the emergence of Cloud Computing – and the three core components of Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS) – is going to completely change the economics of the multi-billion dollar software industry. We have been fortunate to be investors in many of the early Cloud winners (such as Postini, Netli, Trigo, and Cyota), and continue to invest actively behind one of the largest Cloud portfolios in the venture capital industry. Periods of tremendous transformation create tremendous opportunity, and we consider ourselves privileged to be working with many of the great entrepreneurs who are currently creating the next giants of the “software” industry.

When we first published Bessemer’s Top 10 Laws for Being “SaaS-y” two years ago in conjunction with our annual Cloud/SaaS CEO Summit, we were overwhelmed with the positive response and feedback we received. We continue to incorporate the most compelling elements of this feedback into our evolving Cloud Computing best practices profile that follows below. We have modified many of the best elements that we believe are still relevant, and have added several concepts that are entirely new for this publication.


Position Your Software Company for Acquisition

Those of us watching the software landscape know that despite the economic downturn M&A is still the predominant exit for startups. Acquisitions of Vignette, SPSS, Wind River, DataSynapse, Omniture and SpringSource underscore this fact.
If you are you thinking about the best way to position your startup for a possible acquisition then you should attend Software Day at TiE Entrepreneurs Week, Tues. Nov. 17 from 2:30-8:30pm at the TiE Conference Center, 2903 Bunker Hill Lane, Santa Clara.

At this event corporate development executives from SAP, HP, Cisco and other major companies will discuss trends they are watching, segments that are of most interest to them, and ultimately how they identify startups for acquisition. You will also hear lessons learned from the CEOs of the two big M&A headliners in 2009: Omniture and SpringSource, moderated by publisher M.R. Rangaswami. Attendance is limited so click here to find out more and to reserve your spot. Tickets are $95 for members and $125 for non members.

Tales from the Front: Where Marketing Delivered Explosive Growth

Britton Manasco Britton Manasco of Manasco Marketing Partners talks with top execs at Infusionsoft about how their company’s marketing drove sales through the roof. Read the case study in his Blog, Tales from the Front.

Does Oracle Finally Get SaaS? Sort of. Kind of. Almost.

Gary DamianoGary Damiano examines Oracle’s words and actions at OpenWorld for evidence of a genuine commitment to SaaS. Hear his perspective in this post to the Blog on SaaS.

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.

Strengthening India’s Offshoring Industry

India’s technology and business services industry can defend and even expand its global market share, but only if it learns to innovate. Read how in this article from The McKinsey Quarterly.

The Week in Review: Taking Advantage

Microsoft's markdowns; forecast for partly cloudy, Jobs rises to top, Oracle ready to fight, and Yahoo opens up. Read these stories and more software news of the week in the latest Software News Summary.

Poll: Most Important Cloud Law?

What is the most important of Bessemer’s Top 10 Cloud Computing laws?
Take our Pulse Poll >>

Last week, readers told us whether they measure the value of their software products.
Give us your opinion and see the results >>

More at

SaaS market growth defies recession.
Read the most important enterprise software industry news of the week >>

Thing Labs received $2 million.
Monitor the latest software venture capital deals >>

Microsoft to buy SourceGear assets.
Size up last week’s software M&A deals >>

Former SAP/Business Objects EVP John Nugent named CEO of Serena Software.
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 he who can see the invisible can do the impossible.”
— Frank Gaines

Courtesy of Malcolm Kusher, The Kushner Group



OpSource delivers a complete Web operations solution for software as a service and web companies. Many of the largest software companies and the most innovative web companies have selected OpSource as their Web operations partner. By doing so, they are able to focus their resources on building on-demand businesses, rather than investing in and managing the complex and costly infrastructure 24x7, staff and services necessary for successful web application delivery. Providing everything but the application itself, OpSource is the only Web operations company whose customers pay only for what they sell, not for the resources they consume.
Find out more.


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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.