Cloud Valuations

Entering the industry are what I call the “Sophisticated Variant” - these are characterized by the telephone sector (See my Visi/TDS and 8x8 blogs). Telephone companies are hurting as VOIP firms (Like 8x8) are riding the IP rails of Comcast and Time Warner, in a sense for free. In my home state of Florida, landline telephone lines are down 1 million in one year. Did I say “one year”? Did I say "One Million"?. Talk about wireless and VOIP eating their lunch. Telephone companies are against the ropes and they are will continue to fight back with cash, acquisitions and forays into the hosting industry. That fight is in the first round folks.

Stuck in the mud? Public valuations: Hosting trends at 8.9X EBITDA (27% EBITA), Telephone 4.4X EBITDA (38%), Big Box Software 8.9X (36%) ---- WOW??? SaaS 31.5X (7%).

Tom Millitzer provides merger and acquisition services to Internet service firms including Web Hosting, Data Centers and similar sectors. In 1994 he founded and is President of  NCC International /New Commerce Communications, Inc. He has been involved in 300 mergers and acquisitions , fina... (Read full bio)