Cloud Computing - Managing the Transition

By Edison Investment Research, PRNE
Tuesday, November 23, 2010

Sector Report From Edison Investment Research

LONDON, November 24, 2010 - The emergence of cloud computing will reshape the software industry; at a
disruptive pace in some areas and evolutionary one in others. This presents
significant opportunities for companies and investors alike but threats and
pitfalls also lie on the transition path ahead. Sales from US-listed
software-as-a-service (SaaS) pure-plays alone are expected to be $4.2bn in
2010 and estimates call for 18% annual growth over the next two years versus
c 7% for the rest of the software sector. Given the predominant subscription
model of SaaS businesses versus upfront licensing in software, it is possible
these figures underestimate the extent to which SaaS businesses are winning
share. We offer advice to investors and corporates on how to manage this

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The following companies are featured in this report:

SAP (SAP), NetSuite (N), (CRM), Allocate (ALL), EMIS
, FFastFill (FFA), K3 Business Technology (KBT), Kewill (KWL), Maxima
(MXM), SDL (SDL), smartFOCUS (STF), StatPro (SOG), WorkPlace (WSI)

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