Cloud Computing Industry Reaches a Milestone – Net Worth Crosses $100 Billion
30 Jul. 2013 Enterprise Tech News
Bessemer Venture Partners report that the cloud index has risen up by nearly 70% within a time frame of just 18 months.
The cloud computing industry sent shockwaves throughout the software and technology industry by hitting a massive milestone this month. Experts believe that the cloud computing industry has officially come of age, what with 30 large public cloud companies collectively being now worth $100 billion and $12.5 billion in the estimated 2013 revenue.
Bessemer Venture Partners in honor of this milestone released a BVP Cloud Computing Index (shown in the figure below). It is a comprehensive and dynamic market index tracking the weekly market fluctuations of the leading public cloud companies.
This index margin includes hybrid companies – with web-hosted, single tenant models such as Jive, apart from ones with multi-tenant, subscription business models such as Salesforce.com.
Image Source: LinkedIn
The BVP Cloud Index is currently up by 68% from January 1, 2012. It has outperformed other market indexes – NASDAQ and S&P 500 by nearly 30%. The M&A market are also active and more than $10 billion of public cloud M&A has occurred within a span of just 18 months and over $20 billion within the last two years.
However, assessing financial metrics and quickly ascertain key insights from this data is at times difficult. Bessemer Venture Partners provides updated cloud comps, forecasts and operatic metrics in a package that anyone can download via BVP Cloud Comp Sheets.
For experts, who are interested more in raw data, they have included cloud-specific metrics such as sales & marketing spend, retention and free cash flow in the subscription of their business model of the BVP Cloud Comp Sheets.