I think it's more that all types of software tech companies have been overvalued, rather than a specific cloud-based company problem. If it's a pure software pr

I think it's more that all types of software tech companies have been overvalued, rather than a specific cloud-based company problem. If it's a pure software product that works in a web browser, like marketo and zenefits seem to be, then you could stop innovation and maintain it with minimal development for a good long time. Anecdotally, my father has been doing tech support for a product that hasn't seen any new features in over 10 years, but customers keep paying for it. His team is only 5 support people and a part-time developer loaned from another department who fixes an occasional bug. It makes many millions of dollars every year, and my dad doesn't even make $60k, so you can do the math. If a company wants to sell-out to PE and stop innovating, good for them. That's the nature of business, and it opens up the market for a more innovative company.