Editor’s note: Gordon Ritter is a founder and general partner at Emergence Capital, a leading venture capital firm focused on cloud companies. He was an early investor in Salesforce.com and Veeva Systems, and he is currently chairman of Veeva. Follow him on Twitter @gordonritter.
The benefits of an industry cloud strategy are clear. But are there certain industries that are more cloud friendly? To answer this question, we analyzed industries using a framework that ranks each one based on eight factors that speed up cloud adoption and two factors that slow things down.
The Top Cloud-Friendly Industries
Two industries stand out as the most cloud-friendly: healthcare and education. Healthcare has the most traction, with focused and fast-growing cloud companies in many facets of this massive and concentrated industry. In addition to Veeva, companies such as Doximity, CareCloud and PracticeFusion are getting traction, and Athena Health has been successful for years. The cloud helps these companies stay current in a strongly regulatory industry.Within education, universities and school districts have shown a willingness to try cloud solutions, particularly those that are designed for non-desk workers and leverage big data. We have seen a range of companies make inroads, including Coursera, Edmodo and Schoology, as well as two from Emergence’s portfolio — Top Hat and Civitas Learning.
The next tier down includes industries such as retail, utilities, transportation, real estate, construction and insurance, each of which score high on several dimensions. The retail sector looks promising due to its mobile workforce, visual elements, and big data value, and we anticipate major shifts in the software used to drive that industry over the coming years. While these sectors face more hurdles relating to fragmentation and cyclicality, companies such as Real Page (real estate), Textura and PlanGrid (construction), Drivewyze (transportation, Emergence portfolio company) and Guidewire (insurance) show the potential for cloud solutions in these industries.
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