Pegasystems is not your normal software company. It works to fix problems in the computer systems of some of American's largest corporations, helping companies like Ford, J.P. Morgan Chase, and Wells Fargo to identify fraud and manage payments, among other things.
For example, Ford was losing millions by inaccurately processing warranty claims. So Pegasystems created a new system that it expects to save the automaker $10 million in 2009 and more than $50 million by 2012. Pegasystems boosted sales by 31% last year to $211 million.
And investors are cheering its stock -- up 110% in the past year -- after it changed its business model to emphasize 3- to 5-year license agreements instead of its previous "one and done" model.