Cloud Hunter

Reposted from an OT Thread:

Although I am still learning quite a bit about many of the high growth/high margin/high retention/high valuation companies discussed on this board; I consider myself all-in and remain all-in on “Cloud” based technologies and the companies operating in that market segment.

My plan going forward, as we push through this rotation, is to become more educated about the “Cloud” and what the Cloud actually entails, identifying the faster growing sectors of the Cloud market and the leading companies within those sectors:

  • Cloud Business Process Services (BPaaS) CAGR = 7.47%
  • Cloud Application Infrastructure Services (PaaS) CAGR = 19.51%
  • Cloud Application Services (SaaS) CAGR = 15.78%
  • Cloud Management and Security Services CAGR = 14.28%
  • Cloud System Infrastructure Services (IaaS) CAGR = 25.89%

From a recent presentation I attended, according to Gartner (April 2019) the overall Cloud market will grow at 16.08% annually from 2018 to 2022; $182.4B to $331.2B worldwide. The CAGR rates for each of the segments, according to Gartner, are noted above.

As a fisherman, my fishing analogy is that if I was going to be looking for Cloud oriented, high growth, high quality companies, I would want to be fishing in the IaaS pond, the PaaS pond and the SaaS pond, in that order. It may sound rather simplistic; but that’s right up my alley.

I own quite a number of companies in this market segment already; perhaps many that would not make the cut for discussion on this board, but the first phase of my search is on for IaaS that demonstrate revenue growth, great margins, high retention and expansion rates and founder ownership.

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