Software as a service (SaaS) stocks remain on a losing streak. MSPmentor's SaaS 20 stock index fell 11.86 percent for the week ended November 21. The index has fallen more than 55 percent since January 2008 -- proving that SaaS companies are not immune to the economic turmoil around us.
Among this week's developments: Mixed news from Salesforce.com but good news from Dell on the SaaS front. Here are the details.
Salesforce.com: Nearing A Bottom?Salesforce.com's shares declined Nov. 21 "after the Web-based software provider's fiscal fourth-quarter outlook essentially met Wall Street expectations, but some analysts expressed concerns about a drop in its third-quarter cash flow and increasing competition" according to the Associated Press.
Here's a look at Salesforce.com's (Symbol: CRM) stock performance:
Dell Does SaaSMeanwhile, Wall Street was pleased to see Dell cutting costs but MSPmentor's sister site -- TheVARguy.com -- stumbled onto a bigger Dell SaaS story. The PC giant is part of a massive IT outsourcing deal involving the State of Georgia. Sources say Dell Managed Services and SaaS offerings will play a central role in managing the state's IT infrastructure.
There are indicates Dell may generate more than $20 million in revenue from the State of Georgia SaaS/Managed Services deal.
Here's a look at Dell's stock performance:
I remain convinced that more and more businesses will embrace SaaS and managed services. But the transition to those technologies will require multiple years, and there will be bumps along the way -- including the bruising economy we're all facing right now.
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