It's a good time to be a SaaS Company in the Cloud
Following in the steps of Oracle’s acquisition of RightNow Technologies in October, SAP announced their own acquisition of SuccessFactors just the other day at 10.7x revenue multiple. Traditional enterprise software companies are starting to see the future value of cloud offerings as they gain traction with users who are used to the simplicity of socially friendly user interfaces and multi-platform availability that SaaS companies offer. Although only 2% of SAP’s revenue came from the cloud, they are planning to use SuccessFactors in a big way as they reach for their target of 20 billion euros by 2015. SuccessFactors is the fastest growing cloud company and they intend to keep it running separately as in the case of Sybase.
Posted by AlinaSoltys, Senior Analyst on 06 December 2011