Great point. It’s unlikely to be the next blockbuster innovative company. Don’t think they have a moat. But they could coexist with Amazon, Azure and Google as a low cost cloud provider. And since it’s a prepaid subscription model, they don’t have cash stuck in working capital. So if they have a reasonably competent marketing team they can grow at the rate the market for cloud computing is growing (estimated to be around 30% cagr over the next few years) without having to raise money through equity or debt. If they do anything more, I’d consider that a bonus. That’s the thesis for my investment in them.
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