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Medidata Solutions : A SAAS Provider For Your Portfolio

March 23, 2014 | About:



As we witness numerous businesses moving on to the cloud band wagon, various software companies that provide SAAS applications on the cloud foresee a brighter future. Medidata Solutions (MDSO) is one such company which is focuses on cloud enable software solutions as SAAS applications.

Medidata Solutions an industry leader in providing SAAS application for clinical development software solutions and has been performing well as a result of the booming cloud technology. It maintains a strong client list from diversified background like Bio-Tech, Medical Instrumentations devices manufacturers, government departments and academics.

The company recently declared financial results for the Q4-2013. It was impressive to see that its revenues grew as compared to previous quarters.

Solid performance

Medidata has been performing as per the expectation of the investors and registering an organic growth in the past four quarters. In Q4-2013 it recorded $74.6 million, this is a 27% rise as compared to previous year same quarter that recorded 58.6 million. Major contribution to the revenue ($63.0 million) came from the subscription based services. 32% increase in the subscription based services as compared to same period last year.

Medidata experienced an increase of $13.7 million in its gross profit as compared to the year ago quarter. Higher margin application services resulted in an increase in gross margin.

The company recorded full year revenue of $276.8 million which is a gain of 27% year over year. Based on its performance and market scenario of cloud business and SAAS application, it declared a guidance for revenues in the range of $340 – $345 million for 2014.

Journey ahead

Medidata has been consistently identifying customers' needs and has been enhancing its services by implementing new features in its existing cloud applications to improve revenue. The cloud model for clinical software is now more efficient in deployment, which can result in considerable cost savings for end customers. With these benefits, it should be able to bring in new customers and get more business from the existing ones.

Its new product release, Medidata Insight, will help it in acquiring new customers since it is the first of its kind quality management solution for industry specific solutions. This further broadens the portfolio of solutions offered by company.

Its policy of staying focused in the area of clinical development software on leading platforms can be undeniably advantageous for its growth in the future. Adapting to the changing environment and technology with time has been the reason behind the success of Medidata. Enabling cloud based solutions as SAAS applications has rewarded Medidata with revenue growth and its ever expanding services should ensure the same.

Competitors in similar segment

Tableau Software (DATA) is a company which is also focusing on cloud based solutions. It is primarily involved in business intelligence and is partnering with various companies for growth. It has partnered with 1010data with the main objective of providing its customers access of it applications on the 1010data cloud server network for enhancing the performance of the reporting system. The company believes that this partnership will help it to meet its customers’ needs who will be able to analyze critical business trends and patterns spanning billions of transactions, and present results in a matter of minutes.

Oracle (ORCL) is a leader in the software industry, and the company's recent release of Oracle 12c and a new version of "Oracle Enterprise Manager 12c", which assist in implementing mission critical applications on private cloud make its portfolio even stronger. These applications reduce 90% of the downtime and result in 75% productivity increase apart from 20% savings in server cost.

Even Oracle has benefited from partnerships with companies like Microsoft, Netsuite , which have benefited its cloud and java users. So important partnerships are the way to go in cloud computing and even Oracle is following the same path.


Medidata has performed very well thus far and with its new solutions the bull case is strengthened further. Considering the growth of cloud computing and Medidata's specialization in clinical development should ensure growth in the future.

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