Software as a service (SaaS), accessed via the Public Cloud, has become the most efficient way to develop and deliver software. As a result, a new breed of ‘Cloud native’ SaaS players are emerging.
Cloud computing accounted for 5.8% of a global IT market that was worth $2,040bn in 2016, according to IDC. Whilst global IT expenditure is growing at a headline rate of 3%, Cloud revenues - which reached $124bn in 2016 - are growing at closer to 20%. In theory, the entire IT market could shift to the Cloud, so the disruption yet to be unleashed onto the global software and IT services sector is likely to be substantial.
Inside this report, we look at the key trend impacting the Cloud computing industry, drilling down into the value chain and identifying winners and losers.
- This report is part of the ecosystem of thematic investment research reports, supported by the “thematic engine”.
- About the Thematic Research Ecosystem
- The author has developed a unique thematic methodology for valuing technology, media and telecom companies based on their relative strength in the big investment themes that are impacting their industry. Whilst most investment research is underpinned by backwards looking company valuation models, the author’s thematic methodology identifies which companies are best placed to succeed in a future filled with multiple disruptive threats. To do this, the author tracks the performance of the top 600 technology, media and telecom stocks against the 50 most important themes driving their earnings, generating 30,000 thematic scores. The algorithms in the author’s “thematic engine” help to clearly identify the winners and losers within the TMT sector. The 600 TMT stocks are categorised into 18 sectors. Each sector scorecard has a thematic screen, a risk screen and a valuation screen. The thematic research ecosystem has a three-tiered reporting structure: single theme, multi-theme and sector scorecard. This report is a Single Theme report, offering in-depth research into a specific theme. It identifies winners and losers based on technology leadership, market position and other factors.
- The thematic investment research product, supported by the thematic engine, is aimed at senior (C-Suite) executives in the corporate world as well as institutional investors.
- Corporations: Helps CEOs in all industries understand the disruptive threats to their competitive landscape
- Investors: Helps fund managers focus their time on the most interesting investment opportunities in global TMT.
- The unique differentiator, compared to all rival thematic research houses, is that the thematic engine has a proven track record of predicting winners and losers.
Defining Cloud computing
The Cloud computing stack
Business benefits of Cloud computing
User benefits of Cloud computing
Cloud professional services
Cloud model (IaaS and PaaS)
Cloud model (SaaS)
Cloud professional services model
The industry backdrop
Cloud is the th computing wave
Market size and growth forecasts
Strategically, IaaS is the best place to be in the Cloud computing stack
SaaS is the largest segment of the Cloud
The Hybrid Cloud is growing fast
and so is the open-source Cloud
What does the future of the Cloud look like?
Total Cloud services market shares
IaaS/PaaS market shares
SaaS market shares
Cloud professional services market shares
MERGERS AND ACQUISITIONS
All the big tech giants have made significant Cloud acquisitions
CLOUD COMPUTING SECTOR SCORECARDS
Application Software Sector Scorecard
Who’s who in application software
Thematic screen - application software
Valuation screen - application software
Risk Screen - application software
Internet Infrastructure Software Sector Scorecard
Who’s who in Internet infrastructure software
Thematic screen - Internet infrastructure software
Valuation screen - Internet infrastructure software
Risk Screen - Internet infrastructure software
Cybersecurity Sector Scorecard
Who’s who in cybersecurity software
Thematic screen - cybersecurity software
Valuation screen - cybersecurity software
Risk Screen - cybersecurity software
IT Services Sector Scorecard
Who’s who in IT services
Thematic screen - IT services
Valuation screen - IT services
Risk Screen - IT services
APPENDIX: “THEMATIC” RESEARCH METHODOLOGY
- Callidus Software
- Check Point Software
- Cornerstone OnDemand
- Ellie Mae
- Palo Alto Networks
- Trend Micro
- Ultimate Software
- Veeva Systems