Profit In The Cloud: How Epazz, Inc Growth Signals Investment Potential

 
NEW YORK - Oct. 22, 2014 - PRLog -- Investor News Source issues industry report and Company focus on Epazz, Inc. (EPAZD). For more information and to receive exclusive industry articles, the members at INS offer a free subscription service here: http://www.investornewssource.com :

"The Cloud"…is more than a physical technology that our movies and photos are stored on, it's become a catch phrase and of course it's become huge business. We've come to explain the storage of data that isn't on our computers as 'The Cloud' and all that data is stored on servers in a multitude of data centers for easy access around the world. But did you ever think about it beyond just that? Did you ever think of the layers of businesses that are perpetually looking for new ways to make money on the information and cloud users?

There's so much more to this than saving files like sound bites or documents on an external server and there's HUGE business behind the scenes with big money being invested each and every day. The worldwide cloud based software market will grow at a 36% compounded annual growth rate through 2016, reaching a market size of $19.5B by 2016 according to 451Research which is one of many who have come to this approximate figure.

With more than 38% of enterprises surveyed in the study who actually are breaking out cloud computing budgets and another 60% including cloud-related expenditure as part of their enterprise-wide IT budgets, the flow of spending by the companies has made room for organizations to come in a capture market share in an ever expanding sector.

This is not just for ease of storage or increased bandwidth; Corporations, Institutions, and Government agencys are utilizing cloud-based software to streamline their business process, reduce costs, decrease time-to-market (or the time it takes from a product's creation to its release and availability for sale) and of course data mining. The previously mentioned study found that the median enterprise cloud-software budget is $675k and the mean enterprise budget is $8.2M. That same study also found the largest enterprise cloud-software budget at $125M. What does that mean?

With stats like this, there's an obvious industry booming right now in the tech space specific to cloud based software not just storage of data. The average investment that companies are making just in this aspect alone is large enough to take note. Tonight I'm focusing on a company that's rooted within the cloud software space, has just reported strong revenue growth for its second quarter, and has completed several acquisitions that are slated to add several hundred thousand dollars of revenue each year.

Epazz, Inc (OTCPK-EPAZD (http://seekingalpha.com/symbol/epazd)) is a leading cloud based software company on the OTC that specializes in providing customized cloud applications to the corporate world, higher education institutions and the provision of software and applications for the growing public sector.

Its unique BoxesOS product is designed to provide the tools for an integrated, one-stop communication suite and from Banking to Media Entertainment, this product delivers a feature set that allows organizations to regulate work flow and implement project management tools allowing their teams to effectively assign and track assignments, securely share documents and files from remote locations and easily monitor the status of each project.

EPAZD's software revenue model is built around licensing. Products range in price from one time fees of $4k to as much as $250k for a full enterprise solution and you better believe there are several add-ons that could make a total cost jump another $75k for support and integration systems.

Cloud based software enables companies to access software and servers located in a secure data center, maintained by the software provider. To this end, EPAZD has had a banner year thus far seeing quarter over quarter revenue growth of 29.7% from the first quarter to the second quarter this year. In addition to that, EPAZD is also outpacing its numbers from 2013 by almost 20%!

A major contributing factor to this as noted by the most recent quarterly filing was the company's progress with new acquisitions, which include Cynergy Help Desk (adding and estimated 15% to EPAZD's reoccurring revenue) as well as "a surveillance software company used by US colleges and universities" that is expected to bump revenue numbers by upwards of $300k per year according to a recent press release.

With a successful mix of new, profitable acquisitions and strong accelerated growth through EPAZD's licensing model the company should be able to maximize its revenue and pass the dividend to its shareholders. At this point I think the market has reacted positively to the company's most recent progress and after seeing how trading has went during the last few weeks, I feel that EPAZD could be in the early stages of a new wave of positive market momentum.

Volume has progressively increased over the last 10 trading days and EPAZD has seen highs in the last month of $0.60. In my opinion, if this trend continues and Epazz catches traction, there could be a breakout in the making.

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Tags:Cloud, Computing, Software, Epazz Inc, Epazd
Industry:Business, Software
Location:New York City - New York - United States
Subject:Earnings
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