October 18, 2007
An SIIA Webcast

Moderator:
Scott Donahue, Principal, TripleTree, LLC
Speakers:
Jason Green, General Partner, Emergence Capital Partners
Scott Morrison, Vice President, Sircon
Neeracha Taychakhoonavudh, VP of Alliances & Channels Strategy and Business Development, Oracle

Changing capital market conditions and increased expectations for the Software as a Service (SaaS) delivery model have affected the strategic alternatives of many software vendors. The capital markets are strong but for many SaaS firms, valuation expectations will need to be reexamined as an increasingly tough microscope is put on their delivery model. In many respects, SaaS platform providers are entering new and uncharted waters as uncharacteristically small and unprofitable vendors are exploring the public markets. Other smaller, upstart SaaS vendors seeking capital infusions are finding it difficult to differentiate from the competition. Many vendors feel that they have a strong solution and simply need a seat at the table to raise awareness and create firm relevancy. As vendors search the market for ways to improve growth, profitability and go-to-market strategy, many are starting to shift from a pure-play model to a mixed “hybrid” approach that provides a combination of software and other services. In the next 12 months, TripleTree predicts a “separation of the pack” will define a number of options available to firms and ultimately determine where valuations settle. TripleTree will examine these changing market conditions and analyze how these developments will affect timing for both growth and liquidity options.