In a report released last year, research firm IDC provided its view on the global Software-as-a-Service (SaaS)and cloud software performance by vendor in 2013 and outlook through 2018. The research firm noted that the worldwide cloud software market reached $39.3 billion in 2013. While the year-over-year growth in the cloud software market was impressive at 22.6% on a year-over-year basis, there is more to come.
According to IDC, the cloud software market could exceed $100 billion by 2018 at a compound annual growth rate (CAGR) of 21.3%. Importantly, SaaS delivery is likely to outpace traditional software product delivery. In fact, the SaaS space is expected to grow five times faster than the software market as a whole, according to estimates from IDC.
Indeed, the SaaS market has seen substantial growth in recent years. While there are a number of major players in this space, it is useful to keep an eye on smaller, emerging players as they may offer tremendous returns over the next few years. One such player is Iveda Solutions Inc. (OTCBB:IVDA), which is a Mesa, Arizona-based company enabling cloud-based video surveillance through its SentirTM platform.
This morning Iveda Solutions announced that it has made progress with the largest Vietnam telecom provider for cloud video surveillance. IVDA had first announced the partnership last month. The company said that it has executed a framework agreement with the major telecom player in one of the fastest growing Asian countries.
David Ly, Chairman and CEO of Iveda, said that its goal will be to implement the Sentir platform into the telecom major’s data center for immediate market launch. Commenting on the opportunity the agreement offers, Ly had this to say, "With more than 70 million subscribers represented by this Telecom alone, we anticipate this Telecom to bring us significant results."
This is the second major announcement from Iveda this week. Earlier in the week, the company had announced the signing of a definitive agreement for the private placement of shares for its Series B preferred stock and associated warrants to acquire shares of its common stock. The offering has been made to institutional and accredited investors and the proceeds from the offering will be used to fund working capital, inventory purchases and general corporate expenses.
Iveda has been on a roll over the past six months or so, winning a number of contracts. In September of last year, the company had secured a $1.4-million contract with the Taiwan Stock Exchange. This was followed by a $1.8-million contract from Chunghwa Telecom in October.
These developments will certainly boost Iveda’s top line, even as the company continues to benefit from the ongoing growth in the SaaS market. And with the company also boosting its balance sheet with the latest offering, it has the money in the bank to fund growth.
