Technology investors betting big on cloud computing startups on hope of strong returns

December 12, 2012 Off By David

Grazed from Economic Times. Author: Peerzada Abrar.

Technology investors are raising the tempo of investments in cloud computing startups buoyed by strong returns and growing customer demand for software as a service. This week, venture funds closed two more deals in the sector with Norwest Venture Partners putting in $6 million (about Rs 32.6 crore) in first-round funding for Attune Technologies. The Chennai-based startup uses cloud technology for scheduling, billing and management of patient data with a base of 2 million patient records.

Angel investment network Mumbai Angels has made a seed investment of under Rs 5 crore in Pune-based startup MaxiMojo, which provides cloud-based distribution and revenue management solutions for hotels…

"Savvy investors are racing to get ahead of the next wave and pick up great opportunities in the cloud and enterprise software space before valuations rise and competition for deals heats up," says Ravi Gururaj, vice-president for cloud platforms group at Citrix Systems, a global technology firm. His startup venture, VMLogix, was acquired by Citrix in 2010.

The attractiveness of cloud-based applications across sectors from hospitality to healthcare is driven by ease of use and lower cost. The startups offer products where information is stored and processed on computers ‘in the cloud’, or the web, instead of local servers. This data can then be remotely accessed through a personal computer, cellphone or any other device, with users typically paying for the service when they use it...

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