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AppStore will be the one-stop shopping place for on-demand software, starting in Q1 of 2007.
But rather than sell the software outright, NetSuite distributes its software via subscription, a model known as on-demand software.
But Mr Kagermann questions whether on-demand software is as customisable or as reliable as the traditional kind.
Instead, he was eager to discuss larger companies like Microsoft and SAP, and he said their moves to on-demand software are a testament to Salesforce's success.
Companies using on-demand software manage their business functions over the Internet using a Web browser rather than running programs on their own servers.
This may signal a shift in the nascent market for on-demand software, away from single functions such as customer-relationship management (CRM), and towards integrated suites.
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DIVA, which licenses video-on-demand software to cable systems, says users typically order twice as many movies as those with mere pay-per-view access.
(See: "Phantom Phones" and "The Future Of Phone And Web Convergence") Tandberg's spokeswoman said Ericsson was probably more interested in its video-on-demand software, but she added that Tandberg was still in the process of developing the technology for mobile phones.
He said the company has been focusing on "demanding software in industries like enterprise software and internet infrastructure," which usually means working with large enterprises.
Sterling will reside in the software group under WebSphere, IBM's on-demand business software.
On-demand business software vendor NetSuite has confirmed that it is on target for an initial public offering around the turn of the year, which it hopes will see the company valued at $1 billion.
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