Software Pulse
March 9, 2011

amesh PemmarajuCloud Leaders Face a Changing Tide

A new research study finds software execs are optimistic about their cloud business forecasts and the adoption of cloud apps and platforms, but identifies a need to work harder to meet customer expectations.

By Kamesh Pemmaraju, Sand Hill Group

What do senior software executives predict about cloud computing for the next three to five years? One thing is clear: the software industry is in the middle of a major inflection point not seen since the client-server days. The year 2011 is already proving to be a decisive one for cloud software and services vendors.

Like a tidal force’s change in direction that affects the entire Earth, there are indicators that the world of software is shifting to the cloud. The new market reality is that—no matter their size—software vendors can no longer simply push customers to their products; rather, vendors’ products need to be where their customers want to be—in the cloud.


Join Us Tonight for a Networking Cocktail Reception at Cloud Connect

Join Sand Hill Group’s M.R. Rangaswami and Kamesh Pemmaraju for an exclusive cocktail reception taking place following the close of the Cloud Connect event this evening, March 9 from 6:00-7:00pm. Join us for an insightful dialog and networking with senior technology, executives and thought leaders to share ideas about the state of cloud computing and the results of a new survey of Cloud Leaders. The event is sponsored by Ingres and will take place as part of Cloud Connect at the Santa Clara Convention Center in Meeting Room 212.  Please RSVP to Susan Marfise at to attend.

How to Design an Enterprise Software Agreement

Jeremy Aber

Jeremy Aber of explains how software companies can leverage the cloud to speed their time to market in this post to the Blog "SaaS Secrets for Success."

The Race to Win Mobile Transaction Fees

Guy Smith

Guy Smith of Silicon Strategies Marketing handicaps the vendors in the mobile market's competition to engineer Near Field Communication systems and cash in on service fees. Read how Google's strategy has Android in the lead in this post to the Blog, Mobile Moves.

Get the Latest Cloud Research

Sand Hill Group's new "Leaders in the Cloud 2011: The Changing Tide" study contains directional insight by and for software executives. What is the forecast for future cloud revenue? What type of cloud products will dominate the market? What do customers need to see to adopt cloud computing? What geographies and verticals are driving the cloud business? Find out the answers to these and other issues in this important new report. Click here to get your copy today.

The Cloud Simplifies SaaS Delivery

Larry Steele

Larry Steele of Savvis talks to Mark Yablonski, chief technology officer at Valogix about how the cloud has improved the company's SaaS delivery model in this post to his Blog, "SaaS Secrets for Success."

Raising Performance by Reducing IT Complexity

An interview with TalkTalk's CIO David Cooper explores revamping siloed IT systems that were raising costs, hurting customer service, and dampening growth opportunities. Read more in this analysis from The McKinsey Quarterly.

Poll: Cloud Revenue Forecast?

A total of 43% of Leaders in the Cloud 2011 respondents say their software company will earn most of their revenue from cloud products and services within 5 years. What portion of revenue will your company earn from the cloud?
Take our Pulse Poll >>

Top Stories from the Past Week

  1. Talent-poaching Revs Up Among Tech Firms (SF Chronicle)
  2. IBM Fires Back at Oracle in Middleware
    Fray (Computerworld)
  3. Microsoft Azure Named Fastest Cloud Service (InformationWeek)
  4. and SAP: Corralling the Social Cloud for Business Purposes (Seeking Alpha)
  5. NetSuite Embarks on Richer Reseller Program (ZDNet)

Join Global Innovation Leaders at Confluence 2011

Taking place March 11 at the Santa Clara Convention Center, Confluence 2011 is an exclusive globalization summit for executives to understand latest trends in global innovation, engineering optimization and opportunities in emerging markets. Sand Hill Group's M.R. Rangaswami will be moderating a panel at this 2nd annual event which brings together senior decision makers from the Software, Semiconductors, Telecom/Networking, Healthcare (Medical Equipments) verticals. Find out more and register at

The Latest Software Business News on

All Headlines: VMware launches vCenter operation.

VC Activity: Origo Networks receives $2.7 million.

M&A Deals: Outsourcing companies on an acquisition roll.

Executive Moves: Joe Sorrentino named Senior Vice President of Worldwide Sales at ShareVault.

Quote of the Week

Companies are now becoming very concerned about retention... You are seeing them do equity grants not during standard cycles. They are really taking a look at the top 10 percent of performers and asking themselves, 'Are they locked in?'

- Jeff Sanders of search firm Heidrick & Struggles on the struggle to retain tech talent

This Week's Sponsor

Iron Mountain

Iron Mountain is a world leader in information management services, assisting more than 140,000 organizations in 39 countries on five continents with storing, protecting and managing their information. We currently safeguard and provide access to more than 440 million cubic feet of records, 75 million computer backup tapes, 7.4 petabytes of raw storage, 2.5 million PCs and 20,000 servers, and the list is exponentially growing.  And while we are proud of what we've accomplished, we continually work to ensure our partners get the most from their information, while reducing their costs and risks associated with storing and protecting it.
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Software Pulse

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

Publisher: M.R. Rangaswami
Editor: Maryann Jones Thompson

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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.

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