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 (NASDAQ:ORCL), and Microsoft (NASDAQ:MSFT). While (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...

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