Software Pulse

Business Strategy for Software Executives

December 3 , 2007

Michael Gregoire

Between the Lines: SaaS Business Model Execution from Top to Bottom

One veteran CEO shares best practices for on-demand success based on his company’s experiences.

By Michael Gregoire, Taleo

The Software-as-a-Service (SaaS) model of software delivery has grown rapidly because it’s a revolutionary way to deliver business solutions. Gartner reports that “by 2011, 25 percent of new business software will be delivered as SaaS”.  IDC estimates that “by 2011, this opportunity will reach $14.8 billion, representing a compound annual growth rate (CAGR) of 32%.” 

In spite of this market potential, many SaaS vendors have struggled to balance growth with profitability., arguably the most well known on demand company in the world, has only recently achieved consistent profitability.   Many other SaaS companies have racked up significant losses in search of profitability.  Successful evolution from start-up mode to a profitable public company requires relentless focus on execution at all levels to fuel top line growth while delivering bottom line results.


NEW: Live Discussions on!

Now you can leave a comment or engage in a live discussion with other readers on all opinion pieces and blog posts. Simply scroll to the bottom of the page and click “Join live discussion” and enter your comment. It’s that easy!

The Art of Front End Negotiations

When crafting an outsourcing deal, the first interactions with the client are critical. Anirban Dutta of Satyam Computer Services Ltd. provides a list of tips for moving the deal forward in this post to the Blog on outsourcing best practices.

Selling to Business Execs? Be Prepared

Many software salespeople have trouble selling to top executives. Jeff Thull of Prime Resource Group says the key is being prepared. Read how to improve your sales results in the executive suite in this post to the Blog on software sales best practices.

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.

The Evolving Role of the CMO

Many chief marketers still have narrowly defined roles that emphasize advertising, brand management, and market research. They will have to spread their wings. Read why in this article from The McKinsey Quarterly.

What Makes Software Successful?

The business value created? User adoption rates? On-time and on-budget deployment? Take a short survey from and NeoChange and give us your opinion about the drivers of enterprise software success. Click here to participate. All respondents will receive a report of the study’s findings and one lucky respondent will be chosen at random to win a new iPod Nano – just in time for the holidays. Click here to take the study now.

News Update: Trials of the Top Dogs

Microsoft’s troubles with Vista and Office 2007 continue; plus, Ed Zander aims for the door, India aims for $15 billion in software, Intuit aims at SMBs’ online presence and HP aims to keep buying. Read these stories and more software news of the week in the latest Software News Summary.

Poll: Time to Profitability?

How many years does it take to build a profitable SaaS company?   
Take our Pulse Poll >>

Last week, readers gave their opinions as to whether their company was prepared for an economic downturn.
Give us your opinion and see the results >>

More at

Sand Hill Group celebrates the holidays.
Read the most important enterprise software industry news of the week >>

Qwaq, creator of virtual spaces for the enterprise, receives $7 million.
Monitor the latest software venture capital deals >>

Black Duck Software named Robert Lapides as EVP of Field Operations
Size up last week's software M&A deals >>

Send us your feedback on this newsletter and the site.

Parting Thought

"When a man tells you that he got rich through hard work, ask him: Whose?"
– Don Marquis

Courtesy of Malcolm Kusher, The Kushner Group