March 20, 2012
FORT LEE, NJ, March 20 — After years of rumors about cloud computing going mainstream around the world, the cloud computing boom is now finally here. The National Inflation Association believes that by the year 2013, cloud computing could become a bigger boom on Wall Street than the dot-com boom was in the year 2000. Cloud computing is currently a $74 billion industry that accounts for 3% of global IT spending, but in 2013 cloud computing is expected to become a $150 billion market.
2012 will be remembered as the year in which cloud computing started to become widely adopted worldwide. Cloud computing is expected to create 14 million new jobs globally by year 2015. In the consumer space, Gartner is predicting that cloud services will be on 90% of personal consumer devices by year 2015 so that consumers can store, connect, stream, and synchronize content across multiple platforms at different locations.
There have been three IPOs so far in 2012 of cloud computing stocks and all three of these IPOs have been major successes.
Demandware went public last week at $16 per share, which was above its projected $12.50 to $14.50 pricing range, and finished the week up 69% to $17.50. Guidewire Software went public in January at $13 per share, which was above its projected $10 to $12 pricing range, and has risen in 8 of the past 9 trading days to finish yesterday at $33.04 for a gain of 154% since its IPO. Brightcove Inc. went public in February at $11 per share and finished last week at $21.12 for a gain of 92%.
There are two cloud computing stocks that NIA believes stand out from the rest with the biggest upside potential for 2012 and beyond. The only industry that is as hot as cloud computing on Wall Street today is social networking. With Facebook set to have its IPO in May, social networking stocks could be ready for a major breakout.
Although consumer social networking stocks like Facebook have already experienced their biggest growth, NIA believes enterprise social networking is still in its infancy and will experience dramatic growth over the next 5 years. The enterprise social networking industry is projected to grow from being a $600 million market in 2011 to a $6.4 billion market in 2016. There are only two publicly traded enterprise social companies today and they are both also cloud computing plays.
Jive Software is an enterprise social networking company that went public in December at $12 per share, above its initial projected range of $8 to $10. Jive has reached new 52-week highs the past 6 trading days in a row and yesterday reached a high of $27.04 for a gain of 125% from its IPO price.
Jive currently has 61.31 million shares outstanding. This means at Jive's new 52-week high set yesterday, it reached a market cap of $1.658 billion. This is a huge premium for a company with only $77.29 million in trailing twelve month revenues, with a net loss of $50.8 million.
Jive gives businesses the ability to create their own internal social network over the cloud for employees, partners, and customers. Although Jive is a cloud play, it isn't a pure cloud play because approximately 40% of Jive's customers don't use the cloud and instead host Jive's software on their own. There is another enterprise social company that offers their enterprise social platform exclusively over the cloud. While Jive developed their platform before the cloud became a dominant trend, this company developed their social platform for businesses to specifically take full advantage of the power of cloud computing.
The company is BroadVision Inc. and it is currently trading for $46.33 with only 4.6 million shares outstanding and an extremely low market cap of $213.12 million. BroadVision has $54.4 million in cash and no debt. BroadVision also offers a variety of legacy products that NIA estimates are roughly worth $17 million. After subtracting BroadVision's cash and estimated legacy product value from its market cap, BroadVision's Clearvale enterprise social platform is currently receiving an insanely low valuation of only $141.72 million.
NIA believes that BroadVision's Clearvale is the best enterprise social platform available on the market today. If the company can capture just a 10% market share in 2016, their revenues in 2016 could potentially reach $640 million. With Facebook trading on the private marketplace for 27 times sales and the enterprise social space projected to grow in the upcoming years like Facebook has grown in previous years, if BroadVision generates $640 million in revenues in 2016, it could potentially trade for 27 times sales and become a $17.28 billion company. Even a more conservative 5% market share or $320 million in revenues and a price/sales ratio of 10 would value BroadVision in 2016 at $3.2 billion.
BroadVision was already once a $13 billion company during the year 2000 dot-com boom and BroadVision's CEO Dr. Pehong Chen has perfectly positioned the company to take advantage of the biggest two new technology booms, cloud computing and enterprise social networking. With Jive soaring to 52-week highs the past 6 trading days in a row, NIA believes BroadVision could soon surpass its 52-week high set on March 6th of $56.46.
NIA recently released a new report entitled '2012 Social Network Stocks 2.0 Report.' NIA's new report features many enterprise social networking companies both public and private including BroadVision Inc., Jive Software, Yammer, Telligent, Moxie Software, Lithium Technologies, and NewsGator. Enterprise social networking combines social networking with cloud computing and mobile technologies, the three hottest industries on Wall Street. NIA believes that enterprise social networking stocks could potentially be the biggest gainers on Wall Street for the rest of 2012 and 2013. To receive NIA's extremely valuable exclusive new report, go to: http://inflation.us/social2012.html.
NIA owns 184,901 shares of BroadVision Inc. and 58,000 shares of Jive Software at the time this press release was distributed. NIA intends to sell its shares and can sell them at any time. NIA reserves the right to accumulate more shares at any time. NIA's co-founders have also been referred business in the past from somebody who has filed as a large BroadVision shareholder. NIA's report is intended for informational purposes only and does not provide investment advice. Neither NIA nor its co-founders are investment advisors or broker/dealers. Past performance is not an indicator of future returns. NIA's stock suggestions are not a solicitation or recommendation to buy or sell any security. Never make investment decisions based on anything NIA says. Do not rely on information from NIA to make investment decisions. Only use the information contained in NIA's report as a starting point for you to conduct your own research and make your own investment decisions. NIA does not guarantee the accuracy of information in its report. Stock market investing is extremely risky. NIA's co-founders may have previously discussed some companies in other media outlets.
The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation. NIA offers free membership at http://www.inflation.us and provides its members with articles about the U.S. economy and inflation, daily news stories and blog updates, and important charts not shown by the mainstream media. NIA is the producer of economic documentaries that have received a combined 17 million views including the critically acclaimed 'Meltup,' 'The Dollar Bubble,' 'End of Liberty,' 'Hyperinflation Nation,' and brand new 'College Conspiracy.' NIA provides unbiased reviews of the major online sellers of gold and silver bullion and also offers profiles of gold, silver, agriculture, oil, and alternative energy companies that could prosper in an inflationary environment. NIA is the creator of 'NIAnswers,' the world's most comprehensive database of questions and answers about inflation, currencies, debt, and precious metals.
Source: National Inflation Association
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