In the world of information technology, the megatrend of cloud computing is in its infancy.
Cloud computing entails providing software as service.
Cloud computing stocks are very expensive, face stiff competition and are subject to rapid technological changes. However, these stocks are being taken over at a rapid clip.
Oracle (ORCL) just announced that it will buy Taleo Corporation (TLEO). Taleo provides on-demand talent management software. The company is being bought by Oracle at Price/Sales(P/S) of about 6.3.
Previously SAP (SAP) announced purchaseof SuccessFactors (SFSF) at P/S of about 11.5.
Oracle and SAP are the two big software behemoths. For a long time Oracle’s strategy has been to grow through acquisitions. On the other hand, SAP has touted a strategy of organic growth. Now it appears that SAP is on the hunt for more software acquisitions.
Here are five cloud software application stocks that are ripe for a takeover.
Salesforce.com (CRM)
Salesforce.com is the leader in customer relationship management software as a service (SaaS). Users can access the application from anywhere as the application runs on the cloud.
Salesforce.com was founded in 1999 by Marc Benioff, Frank Dominiguz, Dave Moellenhoff and Parker Harris.
The stock of the company is trading at P/S of about 8.2
Concur Technologies, Inc (CNQR)
Concur Technologies provides software to automate management of employee spending.
Concur is run by Steve Singh and Rajeev Singh.
The stock of the company is trading at P/S at 8.4.
Cornerstone On Demand (CSOD)
This company provides talent management and learning solutions as SaaS..Read more at MarketWatch
