Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Will A Different Model Lead To Sustainably Different Results For SolarWinds?

Over the last decade or so, a host of software companies have tried to build successful businesses with models different than those used by industry giants including IBM (NYSE:IBM), Oracle (NYSE:ORCL), and Microsoft (NASDAQ:MSFT). While Salesforce.com (NYSE:CRM) and NetSuite (NYSE:N) have gone the software-as-a-service (SaaS, or Cloud) route, others like Red Hat (NYSE:RHT) have looked to maintenance and support instead of the software itself as the source of value.

That brings us to SolarWinds (NYSE:SWI). There's nothing unusual per se about network management tools - companies like IBM and Hewlett-Packard (NYSE:HPQ) have been selling them for years. What's different about SolarWinds is both the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details