where we are in the cloud transition

Puddinhead42 brought NOW to the board a couple of posts up. "http://discussion.fool.com/now-servicenow-33158894.aspx" Since puddinhead42 generally has some interesting ideas I took a look at NOW’s latest conference call. I’ll post more on NOW later but I found this answer to an analyst question very interesting. Basically they were asked, “how far into the cloud transition are we for NOW” but what ended up getting answered was a bit more of a hybrid question. here it is.

“With regards to what inning? Matt, I would say, let me answer that, that there’s a macro tailwind of cloud. And I would say, cloud is in the second or third inning of enterprises, governments and institutions embracing cloud, it reminds me of mobile may be in 2014. So I think we’re in the third inning of the cloud tailwind. And therefore, when we look at our share of wallet, so to speak, a share of what we think we can grow in many of these customers, I think, we’re – I don’t know, a quarter of the way there, max, more like maybe 20%.”

I’ve read it a couple of times as the answer is relatively convoluted. What i think he is saying is that for enterprise and government they are in the third inning (of 9 i’m guessing) of transitioning to cloud in a general sense. So between what NOW is selling and the macro trend of transition to cloud they think they have only captured about 20% of their business.