BlueTie has distinguished itself from Google in that it is filling its private-label offering with revenue-generating tools.

Partnering with media consulting firm Performance Pricing, BlueTie will provide publishers the opportunity to provide site visitors with branded e-mail suites. The application is embedded with Featuretisements, ad-supported services and search that functions on a CPA model. The suite is offered for free because of a revenue-sharing agreement. The Web publishers, advertisers and BlueTie each obtain direct revenue every time customers complete transactions.

David Koretz, president and CEO of BlueTie expressed the satisfaction over the success of the new program, “We’ve already exceeded our annual goal for advertising partners. We set out to have three signed partners by the end of the year and now we have 19.”

Koretz added that BlueTie is sticking to its original target group. “We know that our product meets the needs of small and medium businesses, and we’re better served by putting all our energy into that. Google can choose to play in the enterprise market with industry leaders like Microsoft, but whether their application even meets the needs of the small businesses they serve still remains [a question].”

The company will expand to some extent beyond the core clientele of small and medium businesses. But unlike Google, BlueTie has no plans to move into the larger arena of enterprise SAAS.

Postini started out with a service to identify and eliminate spam, and it expanded to offer other services, such as the monitoring of communication for brokerage firms to insure regulatory compliance. Postini has messages routed through its own servers, which filter the spam, and then send them off to its client companies.

The concept of software as a service, of course, is one of the hottest fads in technology.

Eric Schmidt, Google’s chief executive, said, “with this transaction, we’re reinforcing our commitment to delivering compelling hosted applications to businesses of all sizes.”

Google has already taken several steps in this direction. Many have commented that the highly publicized acquisition of DoubleClick is another move in the direction of offering software to clients. In the case of DoubleClick, their software essentially services online publishers and advertising agencies.

Google claims 100,000 business customers for what it calls Google Apps. These services are offered in free versions that have advertising, and paid versions that come with extra features.

So Google’s entry into the corporate software business promises to shake up an industry that was already in turmoil due to a shift from selling software to software as a service. Google can offer software for free or at very low cost in order to insert advertising.

The implications are far reaching to be sure. But Google has always operated as a company aiming at paradigm shift not just variations on a theme.