What strategies aew customers adopting concerning their future with SAS with regard to the future sale/IPO
Wait and see until after sale/IPO?
Phase out usage SAS usage asap?
Continue SAS usage with no plans to change?
Other strategies?
9 replies (most recent on top)
@jn Agree with most of what you said, except the $3B ARR. SAS always claims that, but it's a bit of smoke and mirrors. Even if (big if) there was $3B of ARR now, that's a significant decline when you factor in inflation. I left in late 23 and even then the $3B # was suspect.
I wish everyone there and the company all the best, but if the company really offered a solid future and/or revenue stream someone would have picked it up. SAS's value is declining every day
Arguing that many assumptions were made instead of just the one obvious assumption is pedanticly pointless.
The point is that as long as SAS remains unsold the more speculations that layoffs will continue. We concluse that from the actions of the past 5 or so years. Layoffs are are the whole point of this site, not whether it is "many assumptions" instead of one assumption.
If you want to make assumptions then make them impactful. For example, assuming revenue remains flat, layoffs will continue until the profit margin in a GAAP is enticing enough to get more buy bids.
One assumption is that “only one fish has nibbled”. JHG has incentive to talk with multiple buyers. Talks with Broadcom leaked, but there are likely others we don’t know about.
Clearly, no potential buyer met his asking price. JHG appears to have concluded that he’ll get a better price in an IPO. That’s often the case.
It’s likely in this case. A private buyer will pay for the $3B ARR, and that’s probably all they’ll care about. A public sale may attract buyers who see potential in AI and Viya. SAS is certainly doing its best to position those as potential growth areas.
Another assumption is that “something must be wrong”. The asking price probably was too high. But it’s perfectly normal for a large, multinational corporation to require three or four years to IPO.
Five or six years? That would be unusual for most corporations — but not for SAS. SAS always moves slowly.
"So many assumptions"
Really? Let's hear a few. Should be easy if you are correct.
@e3+1jvq6jkf5 So many assumptions in what you said. Unless you are JG you have no idea.
July will make 4 years since Broadcom tried to acquire SAS. SAS was for sale before Broadcom attempted acquisition. Hard to fathom that SAS has been on the market and remains unsold after 5+ years. Even harder to fathom that only one fish has nibbled on that bait.
Imagine listing your home for sale and having no sale with only one looker in 5+ years. Something must be wrong for that to happen.
Time is not being kind to SAS. That is the takeaway based on previous two separate commentaries.
Time is not being kind to SAS with regard to a sale/IPO. Some of that SAS had/had control over and some of it is not.
I worked at SAS 30 years and expected as well as wanted a better 4th quarter from SAS. Presently they remind me of UNC 2024 4th quarter. Just not able to get it done.
Have been through this twice - nearly 10 years apart - with software owned by two different companies.
Same end result for both. Both products were dropped due to mandate from upper management. Both products that were dropped were acquired and faded away. Time proved that upper management made the correct choice for both. I guess that is why they get paid the big bucks lol.
Hoping SAS has a better ending and good luck to all at SAS.
At a customer site. I don't think my dept or division is even aware of or cares about these plans. We are slowly sunsetting our legacy usage, which seems to mainly be for ETL and reporting. Our AI/ML needs are covered elsewhere, unfortunately.
If SAS gets new funding to invest and create new offerings, hopefully we would be interested, but those are pretty big Ifs. Good luck all.