Is Cloud Computing Hurting Software Companies?
Large enterprise software companies have been reporting decreased profitability over the past several years. This has been explained as a byproduct of the cloud computing trend. Is this true? An analysis of SAP’s financial data suggests that the cloud transition and not a system set of problems is to blame. Profitability will likely be hurt in the short-term but will abate in the future. Customers can continue to purchase software from large traditional vendors without fear that they are in permanent distress.