Multi-tenant cloud computing does not have a low barrier to entry. Quite the contrary

View GFio's Comments BY TICKER:

CRM

Latest | Highest rated

• Salesforce.com: Operating Margin Dwindles But What About Business Growth? [View article]

  Profitability is an obvious concern for investors, but I believe the reason for the current profitability constraints are based on decisions by the company to continue to "over invest" for market share growth. The subscription model requires significant up front investment expense (not just equipment & infrastructure, but people) to drive growth, but revenue trails that investment due to revenue recognition over time-so profitability will be impacted up until this is no longer a growth play.
  
  I could not disagree more with the perspective that multi-tenant cloud is more risky, less efficient or more costly. Cloud software CAGR is significantly higher than traditional on premise software, indicating companies are gravitating toward Cloud BECAUSE OF risk & cost profile is favorable. The disrupted traditional software is spreading FUD about multi-tenant Cloud while they invest billions trying desperately to catch up by acquisition.
  Aug 25 03:44 PM | 0 Likes |Link to Comment

• Salesforce.com: Operating Margin Dwindles But What About Business Growth? [View article]

  Multi-tenant cloud computing does not have a low barrier to entry. Quite the contrary. You should note that Oracle was never able to build a meaningful multi-tenant cloud offering with meaningful revenue, and therefore had to resort to buying Taleo and RightNow. SAP same story, no cloud business to speak of, acquired SuccessFactors for a ludicrous valuation.