67 WALL STREET, New York - June 12, 2013 - The Wall Street Transcript has just published its Business and Application Software Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Application Software Consolidation Activity - Cloud Computing and SaaS Trends - Cloud Computing - SaaS and PaaS
Companies include: Fidelity National Information (FIS), Fiserv Inc. (FISV), Jack Henry & Associates Inc. (JKHY), Total System Services, Inc. (TSS), ACI Worldwide, Inc. (ACIW), Heartland Payment Systems Inc. (HPY), Global Payments Inc. (GPN) and many more.
In the following excerpt from the Business and Application Software Report, an expert analyst discusses the outlook for the sector for investors:
TWST: As you mentioned earlier, the outsource providers have gotten involved in a lot of segments of the business. Are there more for them to get involved in, are they pretty well covering the waterfront or it's just more penetration?
Mr. Huff: It depends on the vendor, is the short answer. Some vendors, such as the core processors like FIS (FIS), Fiserv (FISV) and Jack Henry (JKHY), started out as providing a very a broad product set even just in the core processing system. But all three of them have since invested in what we call ancillary systems.
These systems provide ways that you and I or corporates access the money in a bank, such as using Internet banking or a treasury management solution. Then they have also invested in even another group of products around payments including bill pay, card issuing, debit card issuing, that kind of thing. So those bigger companies have become real conglomerates and can serve many, many product niches, but then some of them that are smaller, while they are broadening, are still very focused just on one or a few things.
So there is for example TSYS, Total System Services (TSS), as a company that has focused mostly on card-issuing processing, so a particular payments niche. Although they are very good at that, it was just one particular niche, and they have since broadened out to be a provider of not only the issuing processing but also the merchant side.
Then they just recently they announced, but haven't closed yet, their intent to buy NetSpend (NTSP), which would be another product including prepaid-card processing. So the larger vendors continue to broaden their scope, and there is still room to go for them, but the very largest vendors - it is probably more about a penetration move than it is about expanding the number of products that they serve...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
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