Conference Presentation

DEBATE - Is the Cloud a Profitable Business Model?

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Currently, many XaaS companies are unprofitable. This is due in large part to the high cost of sales required to ramp and subsequently sustain growth of a consumption-based, subscription revenue business model. Is this just a transitory state or a permanent problem? There's a case to be made that the traditional methods of corporate valuation don't apply well to the cloud and that what is needed are new approaches to assessing financial health and providing for the working capital needs of these high-growth business models. Others would argue that the cloud model is unprofitable as is. They assert that XaaS leaders must choose between growth and profits, but can’t have both. Hear both sides of this important debate to learn how you may need to understand and influence the thinking of your C-suite.

Presented By:

Thomas Lah

Executive Director, TSIA

Mark McCaffrey

Global Software Industry Leader, PwC

Tien Tzuo

CEO, Zuora

Publish Date: October 21, 2014

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