His marketing group is mostly correct about this. Most large companies ( the ones that buy software ) have rules that say they cant buy 1.0 software. They don't look at the software to see if its working well, talk to other customers, etc -- its just off the approved purchase list. With that kind of arbitrary behavior about what should be an internal release number -- the only sensible thing to do if you actually need to sell software to pay your employees is change the version number. Now -- version 5 is silly -- I always like version 2.2 myself. Then you can talk about how version 1.0 was a beta that only a few early customers had -- you used that feedback to make version 2 -- and now that were on version 2.2 -- we are really stable. This is the narrative that an internal IT staff is expecting -- if you don't play into it, then your saying that release number purity is more important than having a market for your product. If you believe that - you have no place in commercial software. Regardless of version number, you will still have to convince someone that your product is worth buying. With a version 1.0 product -- your telling corporate IT -- you don't understand their purchasing requirements.