Big Data

Hudson Pacific Capital Partners is interested in Big Data.

According to Gartner, Inc., Big Data is among the IT technologies moving fastest through the “Hype Cycle for Emerging Technologies”:

 http://www.cmswire.com/cms/information-management/gartner-big-data-smart-devices-cloud-computing-maturing-as-technologies-boyd-rises-017038.php

Gartner researchers point out that what they are measuring is the “hype” around technologies compared to what has actually been delivered, and that knowledge about where a technology is in the cycle can have investment and strategic implications.

SaaS Increasing Valuations

Software-as-a-service, or SaaS, businesses, with monthly billing models instead of the traditional license and maintenance fee structure, deals have been increasing lately.

Many firms are scouting for SaaS-enabled companies to add to their portfolios, for a few key reasons:

  • It is not capital-intensive
  • The company can borrow a lot against it
  • The company only has to take care of server costs, for the most part, so incremental margins stand in the 80% and higher range.
  • The recurring revenue is a magnet for PE firms.

Players in the space include Veronis Suhler Stevenson, which bought financial software company Strata Decision Technology LLC last summer. SDT’s signature product StrataJazz offers a SaaS suite of corporate financial analytic services. Pamlico Capital invested $28 million of equity in T2 Systems Inc., a provider of SaaS to parking facilities, in October of 2011.