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Subject:  Software margins Date:  12/30/2019  3:23 AM
Author:  Kingran Number:  41644 of 41659

Traditionally technology companies in general and software in particular, and recently SaaS companies enjoyed very high gross margin. This high gross margin allowed them to invest heavily on R&D and S&M, and of course high profits, thus these companies enjoyed healthy multiples, etc.

With the cloud, I thought margins would come under squeeze but mostly it resulted in HW and SI's margin coming under squeeze but not Software and SaaS.

What will drive SW/ SaaS margins to come down? Why should SW enjoy high 80's margin?
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