Yes, NetSuite is definitely pricey, especially after the stock jumped 12% last week on another solid earnings report. Q4 calculated billings rose 36% y/y, accelerating from 33% growth in Q3. Customer additions remain strong (350 in Q4, vs. 265 in Q3), the large-deal pipeline doubled y/y and ASPs continue to rise. The only problem is valuation: the forward price/sales ratio is greater than 10.
Thanks. NetSuite a bit pricey, no?
I will check out Jive.
Re: The cloud is important - but
cat tail
2/6/2012 12:37:19 PM
Enjoyed this Rob. Thanks for the information.
I think the most likely SaaS buyout targets right now are NetSuite (N), Taleo (TLEO), Cornerstone OnDemand (CSOD) and Constant Contact (CTCT).
Also, recent IPO Jive Software (JIVE), which generates about 60% of its revenue from the public cloud, was rumored to be in buyout talks with SAP right up until its December offering.
Re: The cloud is important - but
TelecomFreq
2/6/2012 11:20:11 AM
tokyogai,
Connectivity is becoming less of an issue as next gen wireless technology is rolling out. The cloud is still very young in its development and has a lot of growth ahead of it as far as I can see.
As the cloud market matures I am sure that the platforms will become more refined.
Re: The cloud is important - but
driven
2/6/2012 11:01:38 AM
I've sort of grown up with the cloud so I see less of the disadvantages than workers who are used to in-house programs. For me, the access from almost anywhere is a huge advantage.
More acquisitions expected
ProfR
2/6/2012 11:00:45 AM
SaaS is the cloud sector that has been around the longest. SaaS does have some drawbacks but it does allow businesses to get applications up and running quickly. The business model normally is pay per user which can often be better than the development and licensing cost of software.
Yes, I would expect more acquisitions of SaaS vendors by software companies.
Good Stuff Rob. I think there are going to be a lot more deals in this space. Who do you think is most likely to be acquired next?
The cloud is important - but
tokyogai
2/6/2012 8:57:10 AM
While there is not doubt there is huge growth in the cloud right now, it really doesn't solve every problem. There actually are times you do not have good access to the Internet and yet would like to be productive. The cloud solves some issues, but it just is not universal. I think we will always have a mixture of cloud based and non cloud based services and software.
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