Justin.tv to Twitch.tv Migration Goes Well for Amazon

Justin.tv to Switch.tv Migration Goes Well for Amazon

Confidence: Medium
Impact: Medium
Disposition of finding: Positive

Twitch.tv is a live video platform, which was introduced in June 2011 as a spin-off of a sister platform Justin.tv. Justin.tv was re-branded as Twitch Interactive which meant a migration and shut down in August 2014. Bated breath ensued for many, I’m sure, however in September 2014, Twitch was acquired by Amazon.com for a reported $970 million.

Since 2013, there was a steady decline of Justin.tv traffic leading up to the migration in the middle of 2014. Surprisingly, it didn’t just go well, it actually ended up being rather good for them, possibly in combination of the Amazon horsepower behind it. But traffic to twitch.tv has well more than doubled since early 2014.

Twitch represents a growing interest in streaming video online, and it makes sense in concern with Amazon prime and competing with the likes of Hulu, Google’s Youtube and so on. I wouldn’t be surprised to see more growth in this area as live events become an easier way to drive more ad revenue, subscriptions and reduced cost given that Amazon owns it’s own hosting infrastructure. It also puts them in a better position to move against Google’s Youtube, Hulu, Vimeo and other premier video hosting companies.

Obligatory legal disclaimer.

Salesforce Sees A Nice Growth Trajectory

Salesforce Sees A Nice Growth Trajectory

Confidence: Medium
Impact: High
Disposition of finding: Positive

Salesforce Inc. is a San Francisco, California headquartered business focused on customer relationship management. It was founded before the great .com crash in 1999, and has since expanded dramatically as a de-facto CRM tool for businesses. It is currently publicly traded on NASDAQ under the symbol CRM.

I’ve been seeing a very nice growth of Salesforce over the last year. Although there was a flatline just before the holiday season (in Q3 2014) they have recently grown quite a bit since December 2014. Seasonal variations are easily explained due to requirements on their retail customers who require stability leading up to the busiest shopping season. Since Q1 of 2014 I’ve seen around a 40-50% increase in their total size.

It’s totally possible that some company could come along and displace any individual feature, that Salesforce provides, but it’s really unlikely that they would be able to match the depth of features, customer support and sheer entrenchment of the Goliath CRM company. Things look good at the moment for their prospects.

Obligatory legal disclaimer.

Atlassian Aims to IPO after OutsideIntel predicts huge growth

Exactly one week after I talked about how Atlassian is poised to make a big IPO based on their huge upswing in growth, Atlassian management announces that they are hiring a new CFO to take them public. Amazing timing and best of luck to the Atlassian team.

This wonderfully demonstrates the power of OutsideIntel’s platform. Being able to identify companies with real growth from a huge array of companies is tricky. Not to mention the signal-to-noise ratio that marketing groups add to the mix. Those things make finding the real meat of a business’ worth is increasingly critical and increasingly difficult. Thankfully I found a way to do it, and it appears to be working in practice.

Atlassian Sees Huge Growth

Atlassian Sees Huge Growth

Confidence: High
Impact: Medium
Disposition of finding: Positive

Atlassian is a mid-sized software manufacturer headquartered in Australia that has become heavily entrenched in the enterprise development space. With products like Jira, Confluence and Hipchat they have already made themselves a relatively well entrenched player in the enterprise software development space.

Atlassian had seen a relatively large growth at the beginning of FY2014, but then had tapered off for the bulk of 2014 with almost no growth compared to what they had experienced previously. That was somewhat concerning at first glance, until I looked at the last few months when Atlassian enjoyed a massive jump. My estimates put Atlassian’s growth at as high or maybe even higher than 30% in a two month time period. Ideally a company preparing for an IPO would grow that much per year, not per quarter, but somehow they are doing just that. That puts them in the explosive growth category, and possibly well into the exponential realm. Is there a public event in their future? This looks promising.

I wouldn’t be surprised if we saw them continue to grow as they become more entrenched. As permeable as development teams tend to be in large companies, it stands to reason that many developers will leave to other companies and recommend Atlassian products to start-ups and other software development shops where Atlassian will get still further entrenched. My only concern with the products that Atlassian sells is that the industry is still young and there are plenty of players attempting to disrupt the market. For now though, Atlassian appears to be on a pretty dramatic up-swing.

Obligatory legal disclaimer.