Phillip Morse writes for TMT Finance
The transition from traditional on-premise to software-as-a-service (SaaS) is creating exciting opportunities for investors.
In the TMT Finance article, “Opportunities for investors in the transition to SaaS,” EY-Parthenon Director Phillip Morse highlights that SaaS is growing quickly as it captures value from hosting services, and creates new market demand. Investors are attracted by this growth and by the revenues generated through the SaaS subscription mode. SaaS businesses are generally valued at much higher multiples than traditional on-premise software businesses.
Phillip explains that there is a role for investors in helping traditional business in transitioning to SaaS, as this shift often requires new investment, technology skills and management expertise while retaining value from legacy products.