In many cases, software managers are struggling with the problem of how to find potential foreign customers for their innovative products and how to serve customers that are located around the globe. While the extant literature offers some insights about the role of the firm’s software offering in a foreign entry mode strategy, a more detailed consideration is needed. Using an in-depth, qualitative approach, this study attempts to understand more about the connection between the nature of the firm’s software and its internationalization strategy. Findings in this study reveal that although software firms used very similar entry modes, the roles of the entry modes varied considerably based on the type of software provided. That is, the nature of the software offering is clearly related to the firm's entry mode strategy, driving what types of activities distributors and subsidiaries are able to undertake in foreign markets.