Top Software And Cloud Computing Picks From Award Winning Barclays Capital (BCS) Equity Research Analyst In This Exclusive Interview

Wall Street Transcript

67 WALL STREET, New York - September 17, 2012 - The Wall Street Transcript has just published its Data Hosting Centers and Data Storage 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, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Data Hosting Centers - Flash Memory - Cloud Computing Secular Trends - Internet Infrastructure Build - IT Consolidation Activity - Mobile Computing - Cybersecurity

Companies include: Microsoft Corporation (MSFT), Oracle Corp. (ORCL), SAP AG (SAP), Symantec Corporation (SYMC), Intuit Inc. (INTU), Salesforce.com (CRM), Informatica Corp. (INFA), Teradata Corporation (TDC), Tibco Software Inc. (TIBX), NetSuite, Inc. (N), DealerTrack Holdings, Inc. (TRAK), Citrix Systems, Inc. (CTXS), Parametric Technology Corporat (PMTC), Autodesk, Inc. (ADSK), CA, Inc. (CA), Ariba Inc. (ARBA), International Business Machine (IBM), Kenexa Corp. (KNXA), Apple Inc. (AAPL) and many more.

In the following excerpt from the Data Hosting Centers and Data Storage Report, a top ranked Institutional Investor equity analyst discusses the outlook for the software sector for investors:

TWST: Would you give us a snapshot of your coverage universe?

Mr. Lenschow: I cover the U.S. software sector, starting with the large-cap stocks such as Microsoft (MSFT), Oracle (ORCL) and SAP (SAP); and moving down to midsized names like VMware (VMW), Symantec (SYMC), Intuit (INTU) and Salesforce (CRM).

My coverage also incorporates important themes, such as Big Data, which includes Informatica (INFA), Teradata (TDC), Splunk (SPLK) and Tibco (TIBX); software-as-a-service companies, including Salesforce, Netsuite (N), Cornerstone (CSOD) and DealerTrack (TRAK); and virtualization, where I look at VMware and Citrix (CTXS). I also cover Parametrics (PMTC) and Autodesk (ADSK).

TWST: What are some of the macro trends that are impacting your space right now?

Mr. Lenschow: Macrowise, what we have seen so far this year is that the software companies I cover are not undergoing a major disaster in terms of the IT spending they receive, since they typically have value-added offerings. The companies that have suffered more are the ones who made internal errors, so their failure is not so much due to macro, but rather specific individual issues.

There's also a clear divide in my space between the companies that are structurally exposed to new themes - like software as a service, Big Data or cloud - which have been working very well, and the more legacy software vendors, such as Symantec or Computer Associates (CA), who have struggled. Those companies that continue to produce the same products that they were selling 10, 15 years ago are seeing a slowdown, while those businesses selling next-generation products have been relatively well insulated so far. Nonetheless, if you look at the general economy, it is slightly weak, and that does impact my space, but the key point is the extent of any impact will vary by company.

TWST: Is end demand still looking healthy though?

For more from 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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