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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000921530-08-000119.txt : 20080214
<SEC-HEADER>0000921530-08-000119.hdr.sgml : 20080214
<ACCEPTANCE-DATETIME>20080214165133
ACCESSION NUMBER:		0000921530-08-000119
CONFORMED SUBMISSION TYPE:	SC 13G/A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20080214
DATE AS OF CHANGE:		20080214
GROUP MEMBERS:		PEQUOT CAPITAL MANAAGEMENT, INC.

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KANA SOFTWARE INC
		CENTRAL INDEX KEY:			0001089907
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				770435679
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13G/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	005-56923
		FILM NUMBER:		08618149

	BUSINESS ADDRESS:	
		STREET 1:		181 CONSTITUTION DRIVE
		CITY:			MENLO PARK
		STATE:			CA
		ZIP:			94025
		BUSINESS PHONE:		6506148300

	MAIL ADDRESS:	
		STREET 1:		181 CONSTITUTION DRIVE
		CITY:			MENLO PARK
		STATE:			CA
		ZIP:			94025

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	KANA COMMUNICATIONS INC
		DATE OF NAME CHANGE:	19990702

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PEQUOT CAPITAL MANAGEMENT INC
		CENTRAL INDEX KEY:			0001071955
		IRS NUMBER:				061524885
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13G/A

	BUSINESS ADDRESS:	
		STREET 1:		500 NYALA FARM ROAD
		CITY:			WESTPORT
		STATE:			CT
		ZIP:			06880
		BUSINESS PHONE:		2034292200

	MAIL ADDRESS:	
		STREET 1:		500 NYALA FARM ROAD
		CITY:			WESTPORT
		STATE:			CT
		ZIP:			06880

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PEQUOT CAPITAL MANAGEMENT INC/CT/
		DATE OF NAME CHANGE:	19981118
</SEC-HEADER>
<DOCUMENT>
<TYPE>SC 13G/A
<SEQUENCE>1
<FILENAME>kanasoftware_13ga1-123107.txt
<DESCRIPTION>AMENDMENT 1; 12/31/07
<TEXT>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                 SCHEDULE 13G/A

                    Under the Securities Exchange Act of 1934
                               (Amendment No. 1)*

                               Kana Software, Inc.
                               -------------------
                                (Name of Issuer)

                         Common Stock, $0.001 par value
                         ------------------------------
                         (Title of Class of Securities)

                                    483600300
                                    ---------
                                 (CUSIP Number)

                                December 31, 2007
                                -----------------
                      (Date of Event which Requires Filing
                               of this Statement)

Check the  appropriate box to designate the rule pursuant to which this Schedule
is filed:

                                [X] Rule 13d-1(b)
                                [ ] Rule 13d-1(c)
                                [ ] Rule 13d-1(d)


*The  remainder of this cover page shall be filled out for a reporting  person's
initial filing on this form with respect to the subject class of securities, and
for any  subsequent  amendment  containing  information  which  would  alter the
disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).

                          Continued on following pages
                                Page 1 of 5 Pages


<PAGE>


                                                               Page 2 of 5 Pages


1        Names of Reporting Persons
         I.R.S. Identification Nos. of above persons (entities only)

                  PEQUOT CAPITAL MANAGEMENT, INC.
                  06-1524885

2        Check the Appropriate Box If a Member of a Group (See Instructions)
                                        a.   [   ]
                                        b.   [   ]

3        SEC Use Only

4        Citizenship or Place of Organization

                  CONNECTICUT

                            5             Sole Voting Power
Number of                                          1,962,900
  Shares
Beneficially                6             Shared Voting Power
  Owned By                                         0
    Each
Reporting                   7             Sole Dispositive Power
    Person                                         1,962,900
    With
                            8             Shared Dispositive Power
                                                   0

9        Aggregate Amount Beneficially Owned by Each Reporting Person

                                    1,962,900

10       Check Box If the Aggregate Amount in Row (9) Excludes Certain
         Shares (See Instructions)

                                    [   ]

11       Percent of Class Represented By Amount in Row (9)

                                    4.8%

12       Type of Reporting Person (See Instructions)

                                    IA, CO


<PAGE>


                                                               Page 3 of 5 Pages


Item     1(a)     Name of Issuer: Kana Software, Inc.  (the "Issuer").

         1(b)     Address of the Issuer's Principal Executive Offices:
                  181 Constitution Drive, Menlo Park, California  94025

Item     2(a) - (c)        Name, Principal Business Address, and Citizenship of
                           Person Filing:
                           Pequot Capital Management, Inc.
                           500 Nyala Farm Road, Westport, CT, 06880
                           which is a Connecticut corporation.

         2(d) Title of Class of Securities: Common Stock, $0.001 par value

         2(e) CUSIP Number: 483600300

Item     3.       This statement is filed pursuant to Rule 13d-1(b)(1)(ii)(E).
                  Pequot  Capital  Management,  Inc.  is an  investment  adviser
                  registered under Section 203 of the Investment Advisers Act of
                  1940.

Item     4.       Ownership:

                  Ownership  as of December 31, 2007 is  incorporated  herein by
                  reference  from  items (5) - (9) and (11) of the cover page of
                  the Reporting Person.

Item     5.       Ownership of Five Percent or Less of a Class:

                  If this statement is being filed to report the fact that as of
                  the date  hereof  the  Reporting  Person  has ceased to be the
                  beneficial  owner of more  than five  percent  of the class of
                  securities, check the following [X]

                  The  Reporting  Person is  submitting  this amended  report on
                  Schedule 13G to correct its prior  submission  on Schedule 13G
                  on February 13, 2008. The Reporting  Person's prior submission
                  reported beneficial  ownership by the Reporting Person of 5.3%
                  of the Issuer's  outstanding  common stock,  based on the most
                  recent  outstanding  share  number  available  in the Issuer's
                  public  filings.  As  of  the  date  of  this  amendment,  the
                  Reporting Person has confirmed with the Issuer that based on a
                  more recent  outstanding share number as of December 31, 2007,
                  the Reporting Person's beneficial ownership of common stock of
                  the  Issuer  does not  exceed  five  percent  of the  class of
                  securities.

Item     6.       Ownership of More than Five Percent on Behalf of Another
                  Person:

                  Not applicable.

Item     7.       Identification and Classification of the Subsidiary Which
                  Acquired the Security Being Reported on by the Parent
                  Holding Company:

                  Not applicable.

Item     8.       Identification and Classification of Members of the Group:

                  Not applicable.


<PAGE>


                                                               Page 4 of 5 Pages


Item     9.       Notice of Dissolution of Group:

                  Not applicable.

Item     10.      Certification:

                  By signing below I certify that, to the best of my knowledge
and belief,  the securities  referred to above were acquired and are held in the
ordinary  course  of  business  and were not  acquired  and are not held for the
purpose of or with the effect of  changing  or  influencing  the  control of the
Issuer of such  securities  and were not acquired and are not held in connection
with or as a participant in any transaction having such purpose or effect.


<PAGE>



                                   SIGNATURES


         After reasonable inquiry and to the best of my knowledge and belief,
the undersigned certifies that the information set forth in this statement is
true, complete and correct.

Date:  February 14, 2008          PEQUOT CAPITAL MANAGEMENT, INC.

                                  By:      /s/ Aryeh Davis
                                           ---------------------------
                                  Name:    Aryeh Davis
                                  Title:   Chief Operating Officer, General
                                           Counsel and Secretary




</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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