Are SaaS Valuations Sustainable? MGI Research Announces Breakthrough SaaS Valuation Report
March 22nd, 2011 - San Francisco, CA - Today MGI Research LLC announced the latest update to its widely popular "SaaS Valuation - What Price is Right?" research report. With data on more than 100 SaaS and Enterprise Software companies, this in-depth analysis addresses many of the questions facing technology executives, investors, and entrepreneurs.
"The question is - are we at the peak of inflated expectations for SaaS or are we in in the very early stages of what can be potentially a $50Bil+ market?" said Igor Stenmark, Managing Director of MGI Research. "Software-as-a-Service (SaaS) has become the dominant deployment architecture and business model for software, and valuation multiples of SaaS companies are near all-time highs. Yet, our field research shows that production adoption of SaaS solutions amongst large organizations still represents only a small fraction of their application portfolio." he continued.
The new MGI Research report provides an in-depth analysis of what drives valuation multiples and market performance for SaaS companies and provides a simple formula for estiamting valuation of SaaS companies. The report examines the following key questions:
- How do SaaS and Enterprise Software firms compare in terms of valuation and performance?
- What is the valuation outlook for SaaS companies?
- Should SaaS companies be focused on growth or profitability?
- Does size matter for SaaS valuation?
- Are current SaaS valuation multiples sustainable?
- Which companies and segments of the SaaS sector are under/over valued, and why?
The report contains data on software firms such as Salesforce, SuccessFactors, Taleo, Concur, Intuit, and many others.
This research report is available immediately to MGI Research subscribers. Individual copies may be purchased in the MGI Research Store. For additional information, visit www.mgiresearch.com
About MGI Research LLC
MGI Research specializes in quantitative research and benchmark data and provides clients with confidential, partner-only strategic advisory services. Founded in 2008, MGI Research counts some of the largest and smallest tech companies, institutional investors, and Fortune 500 CIOs among its clientele.
Andrew Dailey, Managing Director, MGI Research, LLC
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This research report contains data on the following companies:
ACI WORLDWIDE, INC. ADOBE SYSTEMS INCORPORATED AUTODESK, INC. ADVENT SOFTWARE, INC., ANSYS, INC., Ariba, Inc., Asiainfo-Linkage, Inc., ATHENAHEALTH, INC., ASPEN TECHNOLOGY, INC., BLACKBOARD INC., ACTUATE CORPORATION, BLACKBAUD, INC., BMC SOFTWARE, INC., BSQUARE CORPORATION, BROADVISION, INC., CA, INC., CALLIDUS SOFTWARE INC., CADENCE DESIGN SYSTEMS, INC., CERNER CORPORATION, CLICKSOFTWARE TECHNOLOGIES LTD., CONCUR TECHNOLOGIES, INC., CONVIO, INC., COMPUWARE CORPORATION, SALESFORCE.COM, INC., CSG SYSTEMS INTERNATIONAL, INC., Constellation Software Inc., CONSTANT CONTACT, INC., CITRIX SYSTEMS, INC., COMMVAULT SYSTEMS, INC., DEMANDTEC, INC., DIGIMARC CORPORATION, Amdocs Limited, BOTTOMLINE TECHNOLOGIES (DE), INC., EPICOR SOFTWARE CORPORATION, SOURCEFIRE, INC. FORTINET, INC., GUIDANCE SOFTWARE, INC., HEALTHSTREAM, INC., INTRALINKS HOLDINGS, INC., INFORMATICA CORPORATION, INTERACTIVE INTELLIGENCE, INC., INTUIT INC., JDA SOFTWARE GROUP, INC., KENEXA CORPORATION, MAGMA DESIGN AUTOMATION, INC., LIVEPERSON, INC., LAWSON SOFTWARE, INC., MANHATTAN ASSOCIATES, INC., MEDASSETS, INC., MEDIWARE INFORMATION SYSTEMS, INC., MENTOR GRAPHICS CORPORATION, Merge Healthcare Incorporated, MICROSOFT CORPORATION, MICROSTRATEGY INCORPORATED, NETSUITE INC., NOVELL, INC., NETSCOUT SYSTEMS, INC., NUANCE COMMUNICATIONS, INC., OPNET TECHNOLOGIES, INC., OPENWAVE SYSTEMS INC., ORACLE CORPORATION, OPEN TEXT CORPORATION, PDF SOLUTIONS, INC., PARAMETRIC TECHNOLOGY CORPORATION, PROGRESS SOFTWARE CORPORATION, PROS HOLDINGS, INC., DELTEK, INC., PERVASIVE SOFTWARE INC., QLIK TECHNOLOGIES INC., QUEST SOFTWARE, INC., QUALITY SYSTEMS, INC., RADIANT SYSTEMS, INC., RED HAT, INC., RENAISSANCE LEARNING, INC., RIGHTNOW TECHNOLOGIES, INC., RADISYS CORPORATION, SABA SOFTWARE, INC., SAP AG, SCIENTIFIC LEARNING CORPORATION, SOUNDBITE COMMUNICATIONS, INC., SUCCESSFACTORS, INC., SMITH MICRO SOFTWARE, INC., SYNCHRONOSS TECHNOLOGIES, INC., SYNOPSYS, INC., SUPPORT.COM, INC., SPS COMMERCE, INC., SciQuest, Inc., SRS LABS, INC., SS&C TECHNOLOGIES HOLDINGS, INC., SOLARWINDS, INC., SXC Health Solutions Corp., SYMANTEC CORPORATION, TALEO CORPORATION, TELENAV, INC., DEALERTRACK HOLDINGS, INC., MONOTYPE IMAGING HOLDINGS INC., THE ULTIMATE SOFTWARE GROUP, INC., VASCO DATA SECURITY INTERNATIONAL, INC., VMWARE, INC., VOCUS, INC., Vital Images, Inc., XATA Corporation, ZIX CORPORATION
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