In just two years the start-up, 37 Signals, has become a model for how to build products and revenue in the exploding Web2.0 environment. Their approach bypasses the complexity of the enterprise model choosing instead to focus on niche products. Their products include the wildly successful "Basecamp," an Internet-based project management system.

"I think the idea of enterprise software is dead. Enterprise software is kind of a dirty word--big bulky things that never work, were never delivered on time, and are too expensive," Jason Fried, 37 Signals' founder, said.