Another year, another look back at how the Cloud Computing and SaaS industry is faring.
Despite Gartner’s “hype cycle,” and its recent (August 2015) report stating that “the perpetuation of myths and hype regarding cloud computing continues,” it also summarizes that: “when used properly, cloud computing offers IT leaders real benefits, such as organizational and operational agility and, in some cases, cost savings.”
And there’s the crux: anyone who speculates on cloud computing simply because it’s the shiny new thing (it isn’t, and hasn’t been for decades) is a fool. That’s not to belittle the spending of VC money – investment in any area, not least SaaS firms – is to take a calculated risk. Separating the black swans from the black sheep is not an exact science.
Now we hear reports of SaaS stock getting “clobbered,” but the real question is why anyone would be surprised. To belittle SaaS and cloud-based products based on any perceived market volatility is foolish. It’s a good thing that stock’s getting corrected. That’s what prevents gargantuan bubbles being blown up in the first place. Let’s not forget how many jobs and what incredible growth SaaS technologies are fuelling. If the market gets overexcited for extended periods of time, it’s pretty clear to see why.
The problem is when we get too obsessed with the delivery platform, rather than the product (or service) itself. Ultimately, this is so difficult to do with cloud-based solutions precisely because they can afford such an incredible platform for the agility and cost savings Gartner recognizes – something that will only grow as high-speed internet becomes increasingly ubiquitous.