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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?
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