Cloud computing services have become a mission critical component for almost all companies. Software applications, platforms, and infrastructure can all be delivered remotely through private, public and hybrid cloud services. Start-up companies can get up and running and scale rapidly using third party cloud computing services.

Use of cloud computing to deliver core business operations or cloud based products to customers introduces risks as well as benefits. These risks need to be understood and carefully managed to avoid pitfalls. A company’s use of cloud computing services is therefore a vital consideration in the context of M&A/Investment transactions.

Our short video series looks to highlight the benefits and drawbacks of cloud, starting with some basic explainers to those who might be new to the industry and then onto common issues that arise during the course of M&A and investment transactions, and what our top tips are for both the investor and the target company during a deal.

What is cloud computing?

Cloud computing is the on-demand delivery of computer resources over the internet. In particular, data storage and computing power.

Cloud computing has grown significantly over the last 30 years and is omnipresent in businesses of all shapes and sizes. In this video our leading experts, Murray Cree and Denise Pryde highlight the benefits of cloud computing and describe the popular models that have evolved to meet rapidly changing technology needs of organisations including “Public”, “Private” and “Hybrid” models.

What is the "as a service" model?

In this video we explore the “as a Service” offering and how this has exponentially grown over the last 15 years.

The team introduce the main categories that cloud computing services tend to fall into including well known categories such as Infrastructure as a Service (“IaaS”), Platform as a Service (PaaS), Software as a Service (SaaS) and the newer concept of anything as a Service (“XaaS”).

Six top tips when buying or investing in a XaaS provider

With the bullish approach to software M&A over the pandemic period and a more cautious approach of late, our team dive deep into top tips to consider when buying or investing in a XaaS provider.

Key considerations are explored in relation to:

(i)    Software Ownership & Rights,
(ii)   Service Quality,
(iii)  Gap Risk,
(iv)  Operating v. Capital Expenditure,
(v)   Discounts & Incentives and
(vi)  Pricing and Retention.

Ten top tips when buying or investing in a business which relies on XaaS products

With several factors to be aware of when a target company discloses a heavy reliance on “as a Service” products, Murray and Denise explain their top 10 tips to navigate the main considerations when considering buying or investing in businesses that rely on XaaS products.

Six top tips for businesses developing their own XaaS offering

Growing businesses may consider developing their own “as a Service” offering and this video addresses the practical steps that will need to be considered and potential questions that will be forthcoming from potential customers or investors. 

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