Colleague Stephen Andriole preempted me with his excellent 2012 prediction Valuation Models Will Overweight the Importance of Cloud Delivery. I could not agree more with his over-arching message: Wall Street will dramatically modify their valuation models of software and technology services companies to overweight the importance of cloud delivery. Human nature being what it is, I expect we will be witnessing a ton of “washing” in 2012 and beyond. In particular: Cloud washing SaaS washing Multit-tenant washing Your investment style is, of course, your own private business. For example, you might be very successful using The Greater Fool Theory. However, if you are into Value Investing, I would allow myself a word of caution. For Read more
Posts Tagged 'Annie Shum'
In her October 4, 2011 HBS blog post Can HP Change its DNA?, Judith Hurwitz contrasts corporate DNA for hardware versus DNA for software, as follows: The DNA that has been in HP’s bones from the start is all about excellence in hardware engineering…. With hardware markets, money is spent upfront to develop a system. However, once that product is launched, revenue streams in quickly and evenly. .. By contrast, when software is delivered to the market, it may take a year or even several years before it becomes a well-accepted and profitable endeavor… This is what I’ve observed at HP. As it has tried to invest in software, again and again it has killed products off before Read more
My friend Annie Shum has drawn my attention to prosumers and their effect on the value chain. According to Annie, three things are happening in an interlinked manner: Consumers become prosumers – they both consume and produce; consequently, The value chain becomes composite; hence, The whole product is transformed. Consider, for example, a keep-the-memories photo storing, sharing, processing and printing service like Snapfish. The company must have hundreds of millions of customers, many of which are obviously creative. A creative customer who prepares a photo album of her son’s wedding, might design a template she will use to produce the album. This template could be posted and sold on the Snapfish web site for Read more
San Francisco, CA Aging Israelis like me are very fond of the song San Francisco on the Water . We actually melt when we hear Arik Einstein sing it. His golden voice brings back to our hearts precious memories of what we call Good Old Israel: being in harmony with ourselves, with one another and with the mission. In our youth we did not need the inspiring words of JFK – we were really really really asking what we could do for our country. I am literally sitting at this very moment on the water in San Francisco. I am sure I look absolutely lost to the world. I did not have the time to Read more