SaaS valuation boom slowed but remained strong in 2012
December 17, 2012
Grazed from GigaOM. Author: Barb Darrow.
The hypergrowth that the SaaS category saw last year has leveled off, but these companies are still outperforming traditional software rivals and legacy IT providers who are mired in a hardware-oriented world, according to new research from martinwolf Global M&A Advisors.
The growth in value of software-as-a-service (SaaS) companies may not be white hot anymore, but the sector as measured still showed not-too-shabby double-digit growth last year — according to new data that measure enterprise value of tech companies. The SaaS numbers for 2012 looked particularly robust compared to enterprise value of traditional IT vendors which are trying to negotiate a tricky transition from hardware providers to more well-rounded IT services companies, said Marty Wolf, president of martinwolf Global M&A Advisors, a company that consults on merger and acquisition strategies…
“While SaaS growth has been flat the past six months, it is still up 20 percent year to date. Salesforce.com is outpacing the SaaS market—up 20 percent in the last six months and up 50 percent year-to-date. In the same time period,[by contrast] Dell and HP have dropped 30 to 40 percent, and year-to-date are down nearly 50 percent from their highs, respectively…
Read more from the source @ http://gigaom.com/cloud/saas-valuation-boom-slowed-but-remained-strong-in-2012/