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MGI Latest Research

MGI Research coverage enables IT executives, users and investors to make more informed, timely and critical go/no-go decisions on issues that directly affect valuations, market entry and exit, major investments, acquisitions and divestitures. MGI core quantitative research helps technology vendors and investors to more accurately assess and benchmark company operating performance and strategy and identify ways for improvement in growth, gains in market share and valuation multiples. MGI core quant data underpins MGI Advisory Services and Benchmarking engagements. Research themes focus on the major non-linear industry trends such as virtualization, cloud computing, SaaS, emerging mobile platforms, 4G, social media and Agile and their impact on the user, vendor and investor strategies. Access to MGI research materials is available by Subscription. Select research notes are available in our Research Store. Subscribers get priority access to all published research as well as analyst consultation. Among companies covered are, Oracle, Google, Microsoft, SAP, IBM, HP, CA, BMC and others.

Open Source Outlook - Do or Die Time?

27 March, 2009 - The outlook on 2009 enterprise IT spending looks grim.   The silver lining in the doom and gloom surrounding technology spending in 2009 may be found in open source technologies.  The popular business press is touting the notion that the recession could boost market share gains for open source technology companies.  To date, open source technology has not proven to be nearly as disruptive or profitable as once predicted.  Based on funding activity in 2008 and the distance open source companies have to go in reaching sustainable profitability, 2009 looks to be a make or break year for open source companies.

Attachments: (For Subscribers)
Download this file (2009_Open_Source_Outlook_-_Do_Or_Die_Time_032809.pdf)2009_Open_Source_Outlook_-_Do_Or_Die_Time_032809.pdf

MGI Research - Model Portfolio Updates January 2009

For 2008, MGI Research Model Portfolios have significantly outperformed major market indices and hedge fundbenchmarks. This research note reviews 2008 performance results for MGI Research Model Portfolios and provides an overview of portfolio construction methodology and assumptions.
Attachments: (For Subscribers)
Download this file (mgi research - model portfolios update - january 09.pdf)mgi research - model portfolios update - january 09.pdf

Software Maintenance Revenue - Sacred Cow or Hamburger Meat?

The current economic downturn has given rise to numerous pieces of fundamentally good analysis on software company valuations that use software maintenance payments as a basis for valuing a business. Comments like "this company sells at only 2X or 3X its maintenance revenue stream" have popped up in numerous conversations with tech investors and sell side analysts as well as in Barrons™. To access the full content of this Research Note, please CLICK HERE.

What is the Impact of Lehman Brothers Bankruptcy on the Technology Sector?

Today's filling by Lehman for Chapter 11 bankruptcy further highlights how the economic meltdown in the financial services industry will translate into significant demand destruction for technology providers. Techmarket is entering a new phase where the toxic effect of bankruptcies and mergers in finance spreads from a few companies to industry as a whole and makes all tech companies vulnerable regardless of size. Click here to read the entire research note.

Applications Software Vendors Benchmark July 2008 - The Strong Get Stronger and the Weak Get Weaker

This report is a comprehensive look at 75 publicly held applications software companies that range in size from micro-cap firms to the leading large capitalization software companies such as Microsoft, Oracle and SAP.   Using the MGI scores the study highlights key trends in financial performance of the sector and whether the overall sector is strengthening or weakening, and which companies are improving or deteriorating.  As the title of the report states generally the poor economic backdrop accentuated the already sharp differences between the winners and losers.   The report also highlights the exceptions to the trend, as well as discussing the outlook for the sector overall.

Attachments: (For Subscribers)
Download this file (MGI_ASV_Benchmark_July_1st_2008_-_FULL_REPORT.pdf)MGI_ASV_Benchmark_July_1st_2008_-_FULL_REPORT.pdf

Are SaaS (Software-as-a-Service) Companies Vulnerable in a Recession?

Whether a real recession hits the US and spreads to the global economy or the US economy simply slows down in 2008, all software companies- enterprise-license oriented and software-as-a-service (SaaS)on-demand vendors alike will see a meaningful impact in terms oflicense revenue growth and maintenance renewals. This research note examines risks that an economic slowdown would pose to SaaS companies. To see the full content of this Research Note, please CLICK HERE.

Oracle's Bid for BEA: A Mexican Stand-off?

The events in the potential Oracle acquisition of BEA Systems seem to be following a B-movie script with tough talking characters angling to resolve their differences publicly while not losing face. It isn't a Mexican standoff just yet - the third opponent - another bidder or a white knight, is still missing and making it hard for BEA. Carl Icahn - a likely participant in this shoot-out - is sitting this one out for now. To access the full content of this Research Note, please CLICK HERE.

SAP Buys Business Objects: Defensive Move?

On Sunday, October 7, 2007, SAP AG (NYSE: SAP) announced an agreement to acquire Business Objects(Nasdaq: BOBJ) via a cash tender offer valued at EUR4.8billion. The acquisition of Business Objects was not unexpected - the company has been in on-again, off-again conversations with Oracle (Nasdaq: ORCL) and other potential suitors for many months. The French press had leaked news of the SAP/BOBJ dialogue several weeks ago. Did SAP act defensively to thwart perceived interest in Business Objects by Oracle and others? Did SAP - as a result, pay too much for technology that is either at its peak or will require significant investment in the next five years? To access the full content of this Research Note, please CLICK HERE.

MGI Scores: Applications Software Vendor (ASV) Benchmark Oct 2007

This research report provides benchmarks and comparisons of operating efficiency for applications software vendors. The research is based on a proprietary quantitative benchmarking model developed by MGI Research and referred to as the MGI Index. The data helps management teams, boards and investors benchmark operating performance vis-a-vis their peer group of companies and identify areas for improvement. 16 pages. Companies mentioned include ORCL, SAP, MSFT, CRM

Attachments: (For Subscribers)
Download this file (MGI_ASV_Benchmark_Oct_2007.pdf)MGI_ASV_Benchmark_Oct_2007.pdf

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