As a former technology correspondent, tech stories are near and dear to my heart, and our March cover story on how cloud computing is fueling middle-market deals is no exception.
As contributing editor Danielle Fugazy reports, the beauty of the cloud is that it leverages a network of remote servers hosted on the Internet to store, manage and process data, rather than a local server or a personal computer. By enabling on-demand delivery of IT resources and applications via the Internet with pay-as-you-go pricing, cloud computing has paved the way for a slew of efficient, inexpensive services. You couldn't ask for a technology more tailor-made for private equity investors, whose appetite for efficient, cost-effective strategies is legendary.
"The trend toward the cloud is irreversible," explains Orlando Bravo, a managing partner at Thoma Bravo, who appears on our cover. "The cloud is the preferred model of consumption. There are three reasons for its popularity: First, it is feasible, given developments in communication and data infrastructure. Second, it's a more efficient way to engineer and deliver software, since it allows customers to use the latest software releases all the time, taking away the need for multiple versions of software to be supported. Third, when you adopt the cloud model, you are tapping into customers operating budgets that are much larger than capital expenditure budgets."
We expect tech dealmaking to continue soaring in 2015, and cloud computing will remain one of the innovations driving the activity.