Comments on: SaaS Stocks Continue Weekly Winning Streak

By: Joe Panettieri

Joe Panettieri — Wed, 22 Apr 2009 14:44:47 +0000

Vincent: Please don’t consider the SaaS 20 Stock Index the “top 20″ SaaS providers. We aren’t out to name the “best” or “top” SaaS companies. Instead, we us the index to track the overall Software as a Service market.

The vast majority of pure-play SaaS companies remain privately held. In fact, we struggled to find 20 companies to qualify for the original index more than a year ago.

In terms of “on premise” SaaS skewing the results, all the SaaS 20 Stock Index members are equally weighted. If Salesforce.com goes up 5 percent and another index member falls 5 percent, the net result on the index is zero change.

By: Vincent

Vincent — Wed, 22 Apr 2009 10:38:12 +0000

How may companies were evaluated prior to selecting the top 20? You had mentioned there were 4 others requesting to be added. I'm wondering if the pool of companies up for nomination in the top 20 are in the double or triple digits. I see SaaS growing and there are more being built from the ground up every day. Another question I have is whether or not including on-premise to SaaS companies skews the results. Most on-premise solutions are deriving revenue from existing maintenance licensing. Vincent Service Management Link MHelpdesk, Service Management Software

By: Joe Panettieri

Joe Panettieri — Mon, 20 Apr 2009 02:36:39 +0000

Rick D.M.: When you’re ready to share more info I’ll be ready to listen.

By: Rick D.M.

Rick D.M. — Mon, 20 Apr 2009 01:44:06 +0000

Joe thank you for the answers. I’m with a hosting company that may have a strong SaaS story to share soon. Sorry I can’t share any more information at the moment.

By: Joe Panettieri

Joe Panettieri — Mon, 20 Apr 2009 00:45:22 +0000

Rick: The main SaaS 20 Stock Index page explains quite a bit about our original efforts for the index. The original criteria was to find companies that generated the bulk of the revenues from SaaS (examples: NetSuite, Salesforce.com) while mixing in a few companies that are shifting from shrink wrap/on premise to SaaS (examples: Intuit and Ingram Micro through their Seismic division).

The index isn’t perfect but it does a reasonably good job of tracking SaaS trends and providing a market reality check.

We’ve considered rotating companies in and out of the index. At least 4 companies have requested being added. We may rotate them in (and four out, naturally) at the end of Q2/start of Q3. That is, close of business June 30, 2009. Still not sure.

Are you associated with a SaaS company? Wondering what prompted you to post your question? Thanks for reading MSPmentor.

By: Rick D.M.

Rick D.M. — Sun, 19 Apr 2009 23:35:33 +0000

Joe a few questions.

1. What is the criteria to become part of the stock index?
2. Do you rotate companies in and out of the index?
3. If so how often?