-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 GsC4RKm8dtOdH4FfliB6z/7PM1oWxwvU8bPKN4fp/dXBYhjjAkRhpxJU+yqR2Jj2
 5snNhBmRgyP4pOMmeXs/xA==

<SEC-DOCUMENT>0000919574-04-002995.txt : 20041110
<SEC-HEADER>0000919574-04-002995.hdr.sgml : 20041110
<ACCEPTANCE-DATETIME>20041109184109
ACCESSION NUMBER:		0000919574-04-002995
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20041105
FILED AS OF DATE:		20041109
DATE AS OF CHANGE:		20041109

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			NEEDHAM & CO INC
		CENTRAL INDEX KEY:			0000767538
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25857
		FILM NUMBER:		041131032

	BUSINESS ADDRESS:	
		STREET 1:		445 PARK AVE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

	MAIL ADDRESS:	
		STREET 1:		445 PARK AVE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PERSISTENCE SOFTWARE INC
		CENTRAL INDEX KEY:			0001084400
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				943138935
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1720 SOUTH AMPHLETT BLVD., 3RD FLOOR
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94402
		BUSINESS PHONE:		6503417733

	MAIL ADDRESS:	
		STREET 1:		1720 S. AMPHLETT BLVD, 3RD FLOOR
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94402
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>p524519_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-11-05</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0001084400</issuerCik>
        <issuerName>PERSISTENCE SOFTWARE INC</issuerName>
        <issuerTradingSymbol>PRSW</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000767538</rptOwnerCik>
            <rptOwnerName>NEEDHAM &amp; CO INC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>445 PARK AVE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10022</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2004-11-05</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F4"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>15156</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>5.70</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>Footnote 1</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Warrant (Right to Buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>7.50</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-11-05</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F2"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>4816</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2007-11-26</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>4816</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>Footnote 3</value>
                    <footnoteId id="F3"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">This amount includes the pecuniary interest of Thomas P. Shanahan for shares which are beneficially owned by Needham Capital
Partners III, L.P., Needham Capital Partners IIIA, L.P. and Needham Capital Partners III (Bermuda), L.P., which Mr. Shanahan
may be deemed to have a pecuniary interest by virtue of his position as Manager of Needham Capital Management, L.L.C. (the
general partner of Needham Capital Partners III, L.P. and Needham Capital Partners IIIA, L.P.) and Manager of Needham
Capital Management (Bermuda) L.L.C. (the general partner of Needham Capital Partners III (Bermuda), L.P.).</footnote>
        <footnote id="F2">These warrants were immediately exercisable and expired unexercised.</footnote>
        <footnote id="F3">This amount included warrants to purchase shares which are beneficially owned by Needham Capital Partners III, L.P., Needham
Capital Partners IIIA, L.P. and Needham Capital Partners III (Bermuda), L.P., which Mr. Shanahan may be deemed to have a
pecuniary interest by virtue of his position as Manager of Needham Capital Management, L.L.C. and Manager of Needham Capital
Management (Bermuda) L.L.C.</footnote>
        <footnote id="F4">All the shares of the Issuer were purchased by Progress Software Corporation on November 5, 2004, pursuant to an all-cash
transaction for a purchase price of $5.70 per share.</footnote>
    </footnotes>

    <remarks>(+) The above filing is filed by Needham &amp; Company, Inc. on behalf of Thomas P. Shanahan and will be amended upon Mr.
Shanahan receiving the appropriate EDGAR filing codes.</remarks>

    <ownerSignature>
        <signatureName>By: /s/ Thomas P. Shanahan(+)</signatureName>
        <signatureDate>2004-11-09</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----