A number of business software companies are preparing for initial public offerings in the next 12 months, according to a Reuters article. With the rapid rise of cloud computing, these companies hope that their business models, which leverage the cloud, will enable them to go public. The business model that these companies use is called Software As A Service, or SaaS, whereby they essentially lease their software to companies on the cloud, and their customers pay them monthly based on the number of users (or to use the lingo, seats). Investors like the recurring revenue model as it gives better visibility to a forward revenue stream. The Reuters article identifies a number of companies planning IPOs. The article can be found here: http://in.reuters.com/article/2012/06/08/idINL1E8H773O20120608
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