A Wall Street Transcript Interview with Alex Zukin, a Research Analyst Covering the Enterprise Software as a Service Sector with Stephens Inc.: Transition Phase Drives Enterprise Application Software Growth

Wall Street Transcript

67 WALL STREET, New York - November 19, 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, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Cloud Computing Secular Trends - International Enterprise and Consumer Demand - Application Software Consolidation Activity - Cloud Computing and SaaS Trends - Health Care Transition to ICD-10

Companies include: SAP AG (SAP), Adobe Systems Inc. (ADBE), Salesforce.com (CRM), Ultimate Software Group Inc. (ULTI) and many others.

In the following excerpt from the Business and Application Software Report, an expert analyst discusses the outlook for the Enterprise SAAS sector for investors:

TWST: In which customer end markets do you think we will see the best demand for enterprise software solutions, and what is happening in those end markets to drive demand? Which of your companies are well-positioned to serve those markets?

Mr. Zukin: In terms of end customer demand, I don't think it's necessarily changing much. I think it's across verticals. I think it's across customer sizes. I think what I've seen from all of my companies is that almost all the companies that I cover are seeing larger deal sizes, are seeing more enterprise-size deals, are seeing greater acceptance at both the CIO level as well as the CEO level. And I think you're seeing even stalwarts like the financial services industry, a more highly regulated industry, start moving in that direction.

I think one area where you've seen a disruption, in particular, is e-commerce. Those customers have kind of been left, I'd say, trying to catch up to the technology disruption that they've seen, and I think the prevalence - the other common theme that I'm getting besides larger/more enterprise acceptance. One of the reasons that that's happening is the need for agility. Businesses need to be more nimble today more than ever, because otherwise they lose business, and the spending on these solutions from the companies that I cover is a fraction of the amount of business that they would lose basically if they weren't investing in these areas.

TWST: What are the metrics you find most meaningful for analyzing the companies in your group that investors in the space should also analyze?

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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