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But then, perhaps it’s not surprising since Google, ranked second on the list, largely does the same.

That’s amazing.

While the list is predominately comprised of proprietary-software companies, CIOZone points out that these vendors are succeeding precisely because they, too, are changing the game from a proprietary license model to a subscription model:

For smaller companies (more than $50 million in sales and less than $150 million), Omniture (Utah-based - hurray!) leads the pack with a 79.5 percent growth rate on a $143 million base. Not too shabby.

While it was a good year for many software vendors, it was particularly good for companies that have discarded the older paradigm of install-and-maintain and are making their products available as online subscriptions.

Here is the first third of CIOZone.com’s list of the top 60 fastest-growing, public software companies with revenue of at least $150 million.

commentary

Software that increases the efficiency of corporate data centers, or that runs as an Internet-delivered service, is on a roll. Most of the fastest-growing software companies are doing one or the other….

What’s most impressive in the list, however, is the growth rate being sustained by Oracle and Microsoft, because they’re growing from a much larger base. It’s fantastic that Red Hat is growing at 33 percent on a ~$500 million base. But Microsoft is growing by 25.7 percent on a $57 billion base, and Oracle is rising 24.9 percent on a $20 billion base.

This bodes well for open-source companies, for two reasons. One, many SaaS companies depend on open source (and will pay for it) to run their businesses.especially as an increasing number operate with a dual-mode model wherein they make their software available as an open-source download, with a pay-for-SaaS model to complement that. Kaltura, Loopfuse, and others are adopting this model, and I think it promises to be a highly profitable model for those that can pull it off.

(Credit:
CIOZone.com)

CIOZone.com has ranked the top-60 fastest-growing (public) software companies of at least $150 million in revenue, with VMware leading the pack and Red Hat claiming 12th place with a 33.6 percent growth rate. Not bad for a company that gives away its software for free.