According to a Market Study Report published earlier this month, the global accounting software market is estimated to grow 7% annually to $17.3 billion in 2024. The report pegs the industry at $11.4 billion last year. Cloud-based financial software provider BlackLine (Nasaq: BL) recently announced its fiscal fourth quarter results that continued to surpass market expectations.
I have been analyzing SaaS companies for over a decade. More recently, I have been looking into their acquisition strategies, as many have now reached critical mass and need to expand beyond the one product that made them successful to begin with.
Some clear trends are evident in the industry:
First, SaaS companies are acquiring capital efficient startups much more readily than heavily funded ones. Bootstrapped startups are particularly popular as acquisition targets. We’ve covered several prolific acquirers of small startups:
Sramana Mitra: But that’s not the basis of the Indian BPO industry. Indian BPO industry has to do exactly what you’re doing with technology – to automate how to outsource all these routine mundane tasks.
Ondrej Bartos: I do agree. Also, BPO is already not among the top verticals that UiPath is going after. But I still believe that it’s an interesting proposition to the BPO industry as well.
Sramana Mitra: I have a lot of thoughts on this because I’ve long believed that the entire BPO industry is going to disappear because of automation. I think UiPath is a very good example of a company that’s going to enable that transition. Sooner or later it will happen. >>>
Cloud computing software vendor Twilio (NYSE:TWLO) has had a phenomenal stock rally this year. In the last twelve months, the communications platform provider has seen its stock climb an impressive 250%. But analysts are beginning to wonder if the stock has reached its peak.
Sramana Mitra: Can you talk a bit about your pricing model? How did you come up with that pricing model?
Anand Janefalkar: For a lot of companies in this sector, innovation is very rare. Their revenue models were based on trying to fit in one-time fees or maintenance fees and all of that to service that technical debt. We decided that we don’t have any of these hidden fees. >>>
Sramana Mitra: What’s been UiPath’s strategy? Have they set up in Silicon Valley very early on? What is their geographical location and headquarters? How was the company’s run from a scaling perspective?
Ondrej Bartos: The truth is that they started expanding fairly early on. They started with two territories. One is the US. It’s not the Silicon Valley but New York. It’s the East Coast. For a company like UiPath, it may make sense because they focus on the big Fortune 500 companies as potential customers. The East Coast is a good option. >>>
Entrepreneurs are invited to the 435th FREE online 1Mby1M mentoring roundtable on Thursday, March 14, 2019, at 8 a.m. PST/11 a.m. EST/4 p.m. CET/8:30 p.m. India IST.
If you are a serious entrepreneur, register to “pitch” and sell your business idea. You’ll receive straightforward feedback, advice on next steps, and answers to any of your questions. Others can register to “attend” to watch, learn, and interact through the online chat.
According to a Gartner report, VMWare (NYSE:VMW) accounts for 91% share of the virtualization infrastructure software market. Even after including vendors like Microsoft that provide virtual machine capabilities bundled with their other server offerings, VMWare still leads with about 60%-75% share of the market.