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”:
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.
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.