Why Wall Street Loves SaaS

Software-as-a-Service companies have shown a tremendous success on Wall Street—since July, the stock of Human Resources Management pioneer Salesforce.com rose a whopping 828% a share. Stock in enterprise software company Workday shot up 73% on opening day of trading.

The success of the wildly popular Salesforce.com Inc., as well as the Workday IPO from earlier this year, are indications that Software-as-a-Service (SaaS) is an attractive business model to investors—and getting lots of love on Wall Street.

The icing on the SaaS cake? It is that growth in this business sector is only going to continue, according to experts.

What makes SaaS so attractive is the business model. Instead of overpriced one-off software purchase, SaaS is a pay-as-you-go program—offering a steadier recurring revenue stream. Customers benefit from lowered start-up and continuing ownership costs, as well as more predictable future costs.

In an article by Justin Kuepper for TheOTCInvestor.com, all eyes are on the bigger players as they move towards a cloud-based service type, alternatives to having customers make one-time purchases of pricy software. Adobe Systems are already rolling out subscription services to their popular Creative Suite.

Read the original article at TheOTCInvestor.com…