MissionIR would like to highlight GlobalWise Investments, Inc. (OTCBB: GWIV). The company, via its wholly owned subsidiary Intellinetics, Inc., is a Columbus, Ohio based Enterprise Content Management (ECM) pioneer with industry-leading software that delivers cloud ECM based solutions on-demand. Their flagship platform, IntellivueTM, represents a new industry benchmark and game-changing solution by enabling clients to access and manage the content of every scanned document, file, spreadsheet, email, photo, audio file, or video tape – virtually anything that can be digitized – in their enterprise from any PC, laptop, tablet or smartphone from anywhere in the world.
The article, titled "A Cloudy Forecast," discusses the growth of cloud computing. This year it is estimated that fully 80% of new commercial computer enterprise applications will have a cloud-based offering. Whether this turns out to be true, when it comes to the future of information processing, virtually every forecast sees clouds on the horizon in leading roles. It's a market seen as too disruptive to ignore, expected to top $200 billion in revenues before 2020. It threatens the status quo, much as did the rise of the Internet itself. (Microsoft was late in embracing the Internet. Don't look for it to be as slow when it comes to clouds.)
Cloud computing is simply a way to deliver software and applications over the Internet and manage data stored remotely. For the customers of cloud providers, it eliminates the need for your PC to be connected to a server. The information accessed by users is found in the "cloud," data and software stored in remote servers. Space on these servers is usually leased from the cloud provider. Software can be modified company-wide much more quickly, lowering upgrade costs and downtime. It also permits employees to work remotely from any place they can establish an Internet connection. Furthermore, the expense of maintaining the cloud is passed on to the cloud provider.
The key revenue drivers in this industry are licensing revenue (income from leasing software and applications to end-users), leasing revenue (income from leasing data-storage space), consulting revenue, and sales income from the sale of specific software and applications to the end users. Any company that uses computers could potentially benefit from cloud computing. The distribution channel is the same for all providers: the Internet. Companies in this sector can literally compete on a global basis because all the customer needs is a reliable Internet connection.
Consolidation is anticipated among providers, so underlying it all, of course, is the question of who will gobble up whom. IBM, SAP, and Oracle have all sought to acquire cloud and SaaS technology companies, a quick way to establish a cloud presence. In the meantime, Amazon, Google, and Apple have already planted their flags.
A brief sampling of the investment opportunities in cloud computing can be found by looking at the following 3 companies, one new-comer, and 2 old-hands:
GlobalWise Investments, via its wholly-owned subsidiary, Intellinetics, is an example of a company that offers investors a chance to experience significant growth. GWIV has developed a platform that defines a new industry benchmark and game-changing approach by combining advanced virtualization and automated content management with an open and service-oriented architecture using web services. Trading at $1.55 a share, the company has a market cap of $50.51M. Because GlobalWise only recently became a publicly traded company, available historical financial data is limited. However, revenues increased 26.7% YOY for 2010 to 2011. Gross profit increased 26% in the same period. The company has multiple growth initiatives in place to accelerate the pace of future expansion.
Broadvision offers a cloud-based "network of networks" enterprise social platform, for the virtual, mobile, social enterprise. Basically, it's designed to help businesses connect with employees, customers, and partners, and it's fully cloud-based. Trading at $25.29 a share, the company has a market cap of $116.11M. Although recently falling on hard times -- last year, revenues declined by approximately 19.8% compared to the numbers reported for 2010 -- the company is well established in the industry and could be poised for a turnaround.
More risk-adverse investors wanting a piece of the cloud action should look at Salesforce.com. Salesforce.com, an enterprise cloud computing company, provides a social enterprise cloud platform and apps to help employees collaborate easily and connect with customers. Trading at $154.67 a share, the company has a market cap of $21.11B. Revenues for 2011 were 37.1% greater than the value reported for the prior year. According to MSN Money, over the last five years revenues have grown by an average of 35.45% per year.
Investors wanting growth or diversification should take a close look at the clouds. In so doing, they will get a forecast of the future of large-scale computing and the companies that will provide out-sourced IT services, an area that shows potential signs of significant growth.
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This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.