Software Predictions for 2013
What is your SaaS Company Worth?
I recently had the oppportunity to hear Todd Gardner from SaaS Capital talk about valuing your SaaS company. SaaS Capital provides credit line financing to SaaS companies. Some key takeaways were that recurring revenue is the major valuation criteria and that reducing churn increases the value of your SaaS business in several ways. A white paper from SaaS Capital is available here. There is also a webinar and a set of slides that you may be interested in.
There are several financial reasons to reduce churn in a SaaS business but increasing the valuation is an excellent reason why CEOs and CFOs should understand how churn is measured and what improvement plans are in place. Here are some resources on how to reduce churn and increase upselling:
|Cisco Acquisitions: Software, Services & the Cloud
Cisco CEO John Chambers has indicated that Cisco will be focusing more on software and services. During November Cisco announced two acquisitions, Cloupia
and the Meraki acquisition was of considerable size, $1.2B. Cisco's new strategy is one reason why I believe that they are one of the software vendors to watch in 2013
I've looked particularly at the Meraki products and although they do make hardware products the cloud based management software is much more interesting.
Bloomberg has a good article on the Meraki acquisition. It's also interesting to see what Cisco says about the Cloupia acquisition and the Meraki aquisition.