The "in" thing in software is on-demand, which uses the web to deliver business applications. After all, companies like Taleo (NASDAQ: TLEO), Salesforce.com (NYSE: CRM) and NetSuite have done quite well with this model.
But, it's not a cure-all. Just take a look at Model N, which has about $44 million in revenues and is growing 60% per year. Some of the customers include biggies like Johnson & Johnson (NYSE: JNJ) and Pfizer (NYSE: PFE).
Something else: Model N doesn't use on-demand. Basically, it installs software on client sites.
OK, so what's the catch here? Keep in mind that Model N is addressing a new category in software: "revenue management." Or, to put things in English, the software helps companies boost revenues. And what company can say "no" to that?
Should you sell into today's rally? Yes, if you think there are more surprises to come (I do)
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