October 15, 2008
I just spotted this on The Wall Street Journal’s Business Technology blog:
In a study released Wednesday by the University of San Francisco, Mark Cannice, founder of USF’s Entrepreneurship Program, found that venture capitalists’ confidence is at its lowest level since the university began surveying venture investors in 2004.
But that doesn’t necessarily mean bad news for the managed services industry. Here’s why.
Fact is, many managed service software providers are privately held and/or self funded. As a result, they don’t need to press the panic button. Plus, they don’t have irate investors or concerned venture capitalists dialing their investor relations phone lines.
A few examples:
Of course, many MSP software companies have raised venture capital and will need to pursue IPOs (initial public offerings) at some point. This could lead to a market shakeout or accelerated M&A activity in 2010 or so, I believe. And I’m starting to hear that the economic crisis is slowing down some MSP customer decisions.
But overall, I believe the MSP market is holding up better than the broader economy.
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