Archive for the ‘Investors and the cloud’ Category

Wall Street debates: just how do you value data center stocks?



21 February 2013 – A favorable feature article in Barron’s can lift some stocks with a “Barron’s Bounce,” while a tough critique will also be felt in the markets. Last Saturday Barron’s followed up on a slide in Rackspace shares by taking a critical look at the methods used to value data center companies on Wall Street. That kicked off a series of articles in the financial press and blogosphere debating the merit of data center investments.

For more from Data Center Knowledge here’s a review of this week’s action (click here).… Read more

For Big Data and analytics, it’s initial public offering time

23 February 2012 –  Despite all its grandeur and prominence in “the cloud”, the financial markets have not been kind to  Earnings were off and stock suffered mightily for it.   But, ah, what a difference a quarter makes.  Let’s put it simply:  Salesforce killed it this quarter, and the shares are soaring after hours. As of 5:40 pm ET, Salesforce shares are trading at $146 even, up $14.23 or nearly 11 percent. That is what we call a bullish pattern.   So what happened? Results beat the consensus, for one thing. Earnings per share were 43 cents on a non-GAAP basis, beating the consensus of 40 cents. Sales were $632 million, knocking the consensus of $624 million on its hindquarters.   Then came the guidance, which was in truth a mixed bag. The revenue forecast stomped on the consensus: Salesforce said it expects revenue of $673 million to $678 million, well ahead of the $663 million consensus.  But?  The EPS forecast is a bit off at 33 to 34 cents, below the 36 cent consensus.   So what’s got investors so giddy? … Read more

SaaS valuations: off the charts and staying that way


25 November 2011 – Legacy software companies get no respect — or market valuation — compared to Software-as-a-Service (SaaS) players. New research shows that over the past year, SaaS company valuations grew twice as much as valuations of legacy software companies rooted in the client-server world. And that SaaS valuation trend will continue for the next 12 to 24 months, according to new research from Martin Wolf M&A Advisors.

For an old-line company it makes sense to freshen up with a SaaS purchase, even paying top dollar in anticipation that the target’s value will rise as more companies get comfortable offloading tasks from on-premises to a service model. At the same time, existing SaaS players want to broaden their services portfolio with more vertical SaaS options, said Martin Wolf, president and founder of the company.

For more click here.… Read more

ETF Chart of the Day: Cloud Computing

26 October 2011 — “Cloud Computing” made its way to the exchange traded fund landscape in July of this year, with First Trust ISE Cloud Computing Index (SKYY) and E-TRACS Monthly 2X Leveraged ISE Cloud Computing (LSKY), which listed earlier this month.

SKYY has gathered approximately $57 million in assets since its launch and we expect it to be even more active amidst Amazon’s earnings release last night after the closing bell, as the stock will likely be extremely active. Amazon shares were down 10% in morning trading Wednesday.

AMZN is the top holding in SKYY (4.64% weighting), as the index follows a modified equal dollar weighted methodology. Other holdings that round out the top five in the fund are BBBB (4.47%), RNOW (4.42%), CSCO (4.10%), and TDC (4.04%). Other familiar names in the index include GOOG and ORCL.

For more click here.… Read more

The Big Business of “Big Data”

We are going to collect more information about ourselves and the world than we knew existed. Expect a bust, along with a benefit.

24 October 2011 — Is Big Data a Bubble? In case you’re in a hurry: Of course it is. And that is good.  Longer version: Last week there were several events that convinced me that one of the great tech bubbles inflating right now is around what people have agreed to call “Big Data.” Basically the term reflects the fact that its now so easy to digitize and put on the Internet all kinds of information — things as diverse as the measurements of passive sendors,  most or all the world’s books,  200 million tweets a day and most of the world’s significant financial transactions — that the data is growing enormously.

Big Data is really about, however, the benefits we will gain by cleverly sifting through it to find and exploit new patterns and relationships. You see it now in things like Facebook ads, which are put in front of you because the posts you have … Read more

Cloud Storage Start-Up Zetta Lands $9 Million Funding Round

14 September 2011 — Cloud-based storage and backup services are suddenly getting a lot of attention from venture capitalists in recent days. A few days ago we saw Backupify, which backs up data on social networks and Google Apps land a $5 million round.   Now there an enterprise-specific play that aims to use the cloud to replace those creaky old backup tapes that are still used surprisingly often.

The company is Zetta, and it will today announce that it has landed $9 million in a third round of funding from Foundation Capital and Sigma Partners. So what does Zetta do? It offers small and medium sized businesses offsite data protection.

For more from All-Things-Digital click here.… Read more

Intel Capital Bets on Future of Cloud, Gaming

9 September 2011 – Intel Capital has long been a model of a company using its capital clout to feed its future. Thursday, the investment arm of the world’s largest chipmaker gave an indication of where it thinks the future of startups lies, announcing $24 million in funding for seven companies.

“The best computing experiences unite leading-edge hardware with amazing software,” Arvind Sodhani, president of Intel Capital and Intel executive vice president, said in a release. “These investments in best-of-breed software vendors play an integral part in Intel’s software strategy by fueling the creation of compelling and unique user experiences across devices.”

And Intel is betting on startups involved in cloud computing, energy management, and online games.

The Intel Capital investments are no guarantee of success for the companies. But as Timothy Prickett Morgan points out in The Register:

Intel Capital, which has been around since 1991, has backed some pretty good horses, including Linux distributors Red Hat and SUSE, middleware maker JBoss (now part of Red Hat), database maker MySQL (part of Oracle these days), and Zend Technologies (amazingly, … Read more

Amazon’s Selipsky bullish on AWS profitability

7 September 2011 – Ever since Amazon Web Services emerged as the next big thing for e-commerce giant Inc a few years ago, Wall Street has debated whether the business mints money or just breaks even.

In a recent interview with Reuters, Adam Selipsky, a vice president at the unit known as AWS, made it clear the business is solidly profitable and will be for years to come.

“We’re very happy with the economics of AWS,” he said. “It can be a strong free cash flow generating business for the company.”

AWS started offering computing power and storage remotely more than five years ago, making it a pioneer in the hot cloud-computing sector. While the business accounts for only about 2 percent of Amazon’s revenue, it is growing rapidly. Chief Executive Jeff Bezos said last year it has the potential to be as big as the company’s giant online retail operation.

For more click here.… Read more

New Products From Brocade and NetApp Gain Popularity

23 August 2011 – Cloud storage is a model of storage where data is stored on multiple virtual servers, generally hosted by third parties. Driven by the growth of cloud computing, cloud storage is rapidly growing from a small percentage of the IT market to a significant opportunity. The Bedford Report examines the outlook for companies in the Computer Storage Devices Industry and provides stock research on Brocade Communications Systems, Inc. and NetApp, Inc.

According to AMI Partners’ report, US SMB Playbook, the surge of cloud computing is growing rapidly, with the market for hosted storage set to increase 11 per cent yearly until 2015. Cloud computing is highly appealing to today’s organizations, not only because of its projected cost savings but also because of the cloud’s flexibility.

The Bedford Report releases investment research on the Technology Sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns.

For more click here.… Read more

Born from NASA, Nebula Aims to “Disrupt and Democratize” Cloud Computing

11 August 2011 – Nebula and its investors are betting that the movement Amazon started, and that Rackspace and many other “Infrastructure as a Service” providers are pushing forward, is destined to roll through most of the corporate computing world, the way minicomputers did in the 1970s and 1980s and client-server computing did in the 1990s. Nebula will “disrupt and democratize cloud computing,” Kleiner’s Doerr predicted in a statement released on the day of Nebula’s launch. He went on to say that Kemp’s team “has the unique expertise” to deliver the technology in a simple, scalable, low-cost manner. That remains to be seen—the company doesn’t expect to begin field trials of its appliance until the fourth quarter of this year, and there are plenty of other companies, including big ones like IBM and EMC, developing their own private-cloud appliances.

For more click here.… Read more