Deal flow in the Software-as-a-service (SaaS) and Cloud sector picked up slightly in the opening half of 2017 compared the last half of 2016. The information management and enterprise applications & networking subsectors contributed much to the uplift, with the former increasing by 36% on previous half year numbers, contributing to a total value of $7.22 billion across the entire SaaS and Cloud sector.
<p>1| 10 SaaS and Cloud M&A Overview 2H 2017
The ongoing evolution of cloud computing and
Software-as-a-Service (SaaS) means the ability for
enterprises to navigate an increasingly complex
environment in the coming years remains one of the
leadership challenges. Underpinning the
transition from legacy systems is the drive towards
better efficiency, cost and speed.
Big data and analytics has been one of the bright
spots in the sector, with enterprises flocking to
internet-based tools in order to avoid spending on
data centres. As the amount of data stored by companies accelerates, many are updating their systems to help
them understand, predict and influence customer behaviour both online and offline.
As a result, in today's competitive business environment, the need to be well equipped for the shift to cloud
computing, a technology which spans across all industries, has significant implications for M&A activity. Legacy
vendors such as IBM, Oracle, Salesforce and SAP are locked in a perpetual rivalry with each other to acquire
assets to speed up their transition, while tech giants such as Google continue to join the buyer universe in efforts
to boost their enterprise credentials. And further validating investment in cloud and SaaS models private
equity investors are giving strategic buyers a run for their money when it comes to paying premiums.
Looking ahead, developments in artificial intelligence and cloud-hosted voice assistants such as Siri, Cortana,
Google Assistant and Alexa are tipped to be one of the biggest drivers of future growth in the sector.
1H 2011 2H 2011 1H 2012 2H 2012 1H 2013 2H 2013 1H 2014 2H 2014 1H 2015 2H 2015 1H 2016 2H 2016 1H 2017
Total number of Saas and Cloud M&A deals 2011 - 2017
Introduction: New era of computing
2| 10 SaaS and Cloud M&A Overview 2H 2017
Total transaction volume since
Trailing 30 Month Median
Trailing 30-Month Median
Deal flow in the Software-as-a-service (SaaS) and C