Technology Disrupts the Status Quo and Accelerates Business Evolution
While technology enablement is widespread through all areas of the economy, Cherry Tree primarily focuses on the B2B software and services segments of the Technology sector. B2B technology providers typically have limited short-term sensitivity to changing economic conditions due to their business critical solutions and high switching costs. Also, these providers often have recurring revenue components that results in less volatility of business results and favorable cash flow dynamics.
- IT Services
The IT Services subsector includes businesses that are engaged in the design, integration, development, implementation, operation, and support of commercial off-the-shelf (COTS) and customized solutions for business. These types of companies include firms engaged in IT Consulting, Outsourcing, Systems Integration, Staffing, and Security.
- Technology Enabled Business Services
The Technology Enabled Business Services subsector includes businesses that provide outsourced capabilities for customers’ business functions, and move beyond basic Business Process Outsourcing by using technology to automate and deliver solutions.
The Software and SaaS subsector includes providers that leverage their expertise in vertical markets or business processes to create configurable proprietary applications to guide workflows and automate the manual processing of information.
- Information Services
The Information Services subsector includes businesses that create information themselves or aggregate it from other sources and process it for vertical markets or functional needs, and deliver that information via technology-enabled channels.
- Infrastructure Services
The Infrastructure subsector includes businesses that offer capacity and access to physical technology hardware and networks as an outsourced service of critical functions, leveraging economies of scale and network effects to operate.
Technology Enabled Business Services (TEBS)
We divide the Technology Enabled Business Services (TEBS) space into: Software, Business Process Services, Information Services and Infrastructure Services. The newsletter highlights transactions and the quarterly updates include detailed operating and valuation metrics of an index of 100 publicly-traded TEBS companies.