The COVID crisis is upping interest in cloud software, VC Jai Das says - Business Insider

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The coronavirus crisis is force-feeding 2 big changes into the stodgy enterprise software market. Here's why some startups are already benefiting.

, but a pair of trends may help buoy the industry, one expert says.

Many big companies have long operated their own data centers where they host applications and corporate information. But for many, the COVID-19 outbreak has made those setups seem more like a liability than an asset, Das said. Offices have been closed around the nation and world in an effort to limit the spread of the virus, which has made it difficult to get IT managers into corporate data centers to keep them up and running, he said.

Companies are saying: "That is a budget that we don't need to spend, let alone having the people there any more," Das said. In terms of the applications they choose and use, he continued, "people are trying to move those as quickly as possible to the cloud."In recent years, many enterprise software companies have moved to a subscription-based business model, charging customers monthly fees on a per-user basis.

 

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