BVP Cloudscape: Top 300 Private Cloud Companies

June 3, 2014
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In the three years since we created the first BVP Cloudscape to document the emerging Cloud Computing hyper-trend, the movement has only gained more momentum. No longer a rogue approach, the Cloud model (encompassing SaaS, PaaS and IaaS) is now the default choice for end users seeking better applications, CIOs making strategic investments, and entrepreneurs building new businesses.

When a Fortune 10 company like GE decides to roll out Box to 300,000 employees, it’s clear the trend is real – as is the potential for ubiquity.  The value being created is enormous.  We’ve seen a wave of IPOs as the early vanguard enter the public markets, with our BVP Cloud Index now tracking 38 companies, and recent market correction notwithstanding, over $130Bn in market cap.

 

Even more exciting, companies in the BVP Cloud Index represent just the (publically visible) tip of the iceberg.  There are literally thousands of private companies, many with triple-digit growth at scale, vying to be the next out the gate. Given our view into the private markets, we’ve featured the 300 most promising private companies in this 4th installment of the BVP Cloudscape.

 
We kept the familiar stack of SaaS, PaaS and IaaS, then layered in new organizational categories along three axes:

1. Functional Buyers (and their budgets): Sales, Marketing, HR, IT Ops, etc.

2. Horizontal Solutions: Collaboration, BI / Analytics

3. Industry-Specific Solutions: Healthcare IT, Real Estate, Education, etc.  

This structure not only features the leaders within each category, it also highlights just how broadly Cloud adoption is happening at every layer, and in every area of the software landscape.

 
Looking at past Cloudscapes, it’s clear the M&A market has been just as frenzied as the IPO market, both in volume and in multi-billion dollar takeouts.  Certain categories saw particularly rapid consolidation, such as the Social Media Marketing Category with Buddy Media, Wildfire, Vitrue, Involver.  Or Email Marketing, with ExactTarget, VerticalResponse, iContact.   Interestingly, consolidation didn’t extinguish these categories; in both cases, new entrants have quickly emerged and are growing rapidly.
 
Looking to the future, there are three sectors that we’re particularly excited about:

1. Developer-focused businesses as our investments in Twilio, SendGrid, CrowdFlower and others have shown that developers can not only be strong advocates, they can drive budget.

2. Securing the Cloud and the host of new challenges it brings; our investments in Cloudlock, Internet Identity, Defense.net help businesses protect themselves and their customers in this new world.

3. Vertical SaaS solutions like MindBody, XTime, DocuTap and others show that an elegantly designed solution that fits an industry’s specific needs can be compellingly valuable.

We believe that the move to Cloud Computing is only just beginning.  After all, today’s cloud market represents only 2% of the $1.4Tn that IT spends annually.  With the BVP Cloud Index tracking the public markets, we’ve attempted to highlight the most promising private companies with this next installment of the BVP Cloudscape.  Let us know what you think – you can drop a line in the comments below, or reach us anytime at cloudvc@bvp.com