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Amazon’s Huge Cloud Lead – Looking for #2

Posted by Andrew Dailey
Andrew Dailey
Andrew Dailey is a Managing Director of MGI Research
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on Monday, 18 November 2013
in Cloud Computing

Road Notes – Amazon re:Invent Conference in Las Vegas, Nov. 11-14, 2013

The re:Invent conference, Amazon’s annual gathering of its cloud computing customers, prospects, and partners, has become the barometer of industry adoption of cloud computing. It’s become a massive event, hosted in Amazon’s distinct style, and underscores Amazon’s lead in the nascent, but growing market for cloud-based IT services.  Organizations of all sizes are looking at Amazon, and practical hurdles limit the path of adoption.  The success of the event also highlights the lack of a clear #2 player in the market.  This is a real issue for competitors, because there is ample room for Amazon to improve its messaging and sales pitch.

© 2013 MGI Research, LLC
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How Can Blackberry Come Back from the Dead?

Posted by Igor Stenmark
Igor Stenmark
Igor Stenmark is a Managing Director of MGI Research.
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on Monday, 04 November 2013
in Mobile Computing

Blackberry today announced a termination of its planned buyout and a replacement of its CEO Thorsten Heins with former Sybase CEO John Chen as an interim Chief Executive. A smaller ($1 Billion) round of funding will take place instead.

Going private and restructuring the company is in our view the most viable long-term path forward for Blackberry. Company needs a real strategy that is different from everything management has tried during the last 24 months. As a mobile phone maker Blackberry is "dead". It still has many users worldwide, it still has great technology, but the game is over and all the rest of it matters little. The question is: What's next?

We believe that Blackberry could be re-born as a mobile device company. Five years from now, mobile smartphones and tablets will be only one of many Internet-enabled smart devices. A broad spectrum of connected gadgets and sensors ranging from smart alarm clocks and thermostats (a la NEST) to cars, cargo containers and heavy industrial equipment, is likely to hit the market. The opportunity in this space is wide open and Blackberry at least has the technology and some remaining talent to deploy in this area. The company has hinted at the automotive market apps a while ago, but we do not believe it really focused and funded this effort in earnest.

One thing is clear, - if the new management team tries to once again revive Blackberry as only a smartphone maker, its chances for success are limited. Our expectation is that Blackberry will be bogged down for a while in survival mode and not be able to refocus on new opportunities till at least mid-2014, if at all.

Related Past Blog Posts:

CIOs talk about not renewing RIM Contracts - Next Six Months Critical

Is Leon Cooperman Right? Can QNX Save RIM?

© 2013 MGI Research, LLC
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Twitter Ups IPO Valuation Closer to Our Estimate of $17Bil

Posted by Igor Stenmark
Igor Stenmark
Igor Stenmark is a Managing Director of MGI Research.
User is currently offline
on Monday, 04 November 2013
in MGI Quant

This morning Twitter raised the price of its proposed IPO from $11.1 Billion to $17.4 Billion. The Internet Valuation Model we published last week predicted $17Bil market cap for Twitter. The revised Twitter valuation is also inline with average EV/Revenue multiple for LargeCap Internet stocks. The price increase must be reflective of demand for Twitter IPO shares. There is a high probability that at the open of trading, Twitter shares will trade above the trend line for its peer group. As a reminder, - there are numerous LargeCap social media stocks (Facebook, Linkedin, et al) that trade above the valuation trend line.

© 2013 MGI Research, LLC
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Replay of Primary Access Oct 10 2013 Conference Call on Cloud ERP is now available

Posted by MGI Research
MGI Research
MGI Research Analyst Team
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on Tuesday, 15 October 2013
in SaaS
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Replay of Primary Access Sep 25 2013 Conference Call with Jaspersoft

Posted by MGI Research
MGI Research
MGI Research Analyst Team
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on Monday, 30 September 2013
in Big Data

The replay of Primary Access September 25 2013 conference call with Karl Van den Bergh of Jaspersoft is now available. If you are a current subscriber, please CLICK HERE to access. If you are not a subscriber, please contact Vince Conrad at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

© 2013 MGI Research, LLC
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