Significant ROI and Increased Comfort in Security Drive Corporations' Shift to the Cloud: A Wall Street Transcript Interview with Daniel Ives, Managing Director at FBR Capital Markets & Co.

Wall Street Transcript

67 WALL STREET, New York - June 11, 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: EMC Corporation (EMC), Check Point Software Technolog (CHKP), Symantec Corporation (SYMC), Nuance Communications, Inc. (NUAN), Synchronoss Technologies, Inc. (SNCR), j2 Global Communications, Inc. (JCOM), Oracle Corp. (ORCL), SAP AG (SAP), VMware, Inc. (VMW), Sourcefire, Inc. (FIRE), NICE Systems Ltd. (NICE), Verizon Communications Inc. (VZ), AT&T, Inc. (T), International Business Machine (IBM), Citrix Systems, Inc. (CTXS) 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: Let's touch on the communication side. What's going on there?

Mr. Ives: I mean there you have a number of technologies that, I would call them almost under the radar, because they are not maybe as prominent as Big Data or security virtualization, but you've seen some of these sector trends hold up pretty well, because while the communication software names such as a Verint (VRNT) and NICE (NICE) - they are basically analytics companies that have historically focused on the call center, but now what's happened is that there's so much data that's come to the call center.

These guys have been able to, I think, focus more on almost a Big Data theme and have started to see some pretty strong spending trends around that theme, and I think that's benefited guys like NICE and Verint.

And then, you have names like Synchronoss, which have shifted from traditional activation for carriers such as Verizon (VZ), AT&T (T), and they've helped build these cloud businesses, cloud platforms, which are really starting to take flight. And that's been a major growth catalyst for a name like Synchronoss, which speaks to the stock's performance over the last six months.

And then on the communication software, there's names like JCOM, j2 Communication, a traditional eFax player, hosted fax, they've done a number of acquisitions which have gotten them into backup as well as the media business, and they've been able to diversify pretty successfully, and that's something investors have applauded as they've been able to show some pretty strong growth as well as great margin improvement. So it's their overall communication software as well as secular themes that have held up better than most in this environment.

TWST: You mentioned a lot of small names, new technologies. Are we going to see another round of M&A activity...

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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