Software Pulse

Business Strategy for Software Executives

May 8 , 2006

Bill McNee

Get Ready for SaaS 2.0

A new study reveals seven key trends as software-as-a-service evolves beyond its current focus on cost-effective software application delivery toward an integrated business service provisioning platform.

By Bill McNee, Saugatuck Technology

Software-as-a-Service (SaaS) is one of the most compelling and challenging IT and business innovations of the past two decades. Not surprisingly, SaaS is generating tremendous interest, heated debate, and a broad spectrum of opinion regarding its impact on users and vendors.

A new study from Saugatuck Technology, SaaS 2.0: Software-as-a-Service as Next-Gen Business Platform, shows that SaaS is at a fundamental tipping point between the current generation of software functionality delivered as a cost-effective service or SaaS 1.0 - and the emerging generation of blended software, infrastructure, and business services arrayed across multiple usage and delivery platforms and business models or SaaS 2.0.

The move to SaaS 2.0 will bring with it new business trends and key points of caution for users and vendors alike.


Dollars & Sense?

Software vendors report a mixed bag of earnings; plus IBM rounds out Rational, Lego goes open source and Microsoft & SAP sing a Duet… Read this and more news of the week in the weekly news summary. Visit every Friday when editors compile the most important software news and deliver readers a quick capsule of the week’s developments.  

The Debut of The Picky VC

Matt MillerMatt Miller joins as a featured blogger with the debut of his blog, The Picky VC. This week, Matt shares his perspective on the recent first quarter venture capital totals and what they say about the health of software investing today.

Publish Your Perspectives!

The Blog wants your opinions. Send your thoughts on the enterprise software industry to and we’ll publish them in our blog.

Need a New Job?

A new batch of executive searches from recruiter Sterling Hoffman is available on the job page. receives visits from tens of thousands of veteran software executives every week. Post your job on the site and reach the Webs most qualified pool of candidates. Visit the community page and click on ‘Want to Post a Job?’ at the bottom of the Software Jobs section.

Dont Miss McKinsey on Managing Services

Measuring the performance of a services business is more difficult than it is to monitor manufacturing results – but it isn’t impossible. The McKinsey Quarterly examines what it takes to effectively analyze services productivity and improve performance in this week’s article from the journal.

Poll: A Decent “Duet?”

What do you think of “Duet,” the new name for Project Mendocino from Microsoft and SAP?
Take our Pulse Poll >>

Last week, readers gave their opinions as to whether CA’s guilty plea would impact the reputation of the software industry.
Give us your opinion and see the results >>

More Highlights from Software 2006!

Every week, new content from the Software 2006 conference appears at Online this week: video of key speakers, slides from popular presenters and the Software 2006 Industry report from McKinsey & Co. and Sand Hill Group. Visit each week for more new conference content.

More at

Forrester says SAP leads Oracle in order management.
Read the most important enterprise software industry news of the week >>

InSync Software receives $7.5 million.
Monitor the latest software venture capital deals >>

Plaxo buys HipCal.
Size up last week's software M&A deals >>

Mental Images names Andre Wolper as CEO.
See who's made it to the top in our list of recent software executive appointments >>

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Parting Thought

“Life is pleasant. Death is peaceful. It's the transition that's troublesome."
– Isaac Asimov 

Courtesy of Malcolm Kusher, The Kushner Group