The Demand for Cloud Based Software

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Oct. 21 (Bloomberg) –- Veeva Systems Founder and CEO Peter Gassner discusses cloud based software and the company's growth with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Computing and enterprise computing ipo's. it has gone up 130%, and the ipo was something to write home about.

It was the nerd biggest ipo of the year.

Peter joins me right now.

Peter, i was really struck by this filing.

Your business is, what, six years old, and you are growing like crazy.

We started this business 6.5 years ago, and we were the largest as measured by revenue cloud software company to go public this year and also the most profitable, so it has been a tremendous ride or our customers and our employees.

I find it interesting that your business has a larger scale.

I know you go back to the peoplesoft days, and i wonder what it is about the niche you are in that allows you to be so much bigger.

Or tell me i am wrong.

I do not think it is a question of right or wrong.

It is a question of difference.

I started my career back in the mainframe days at ipm, and then we were moving people off of the mainframe to client servers, and then we took them from client/server to the cloud, and then i saw the opportunity to look at big business with industry specific solutions in the cloud, and in that way, you have got these very specific cloud operations at can focus on big industry's biggest problems, and that is where the applications are.

I would say it is different.

It is a new wave with this industry cloud piece of software.

Talking about the new era of work localization, things like opentable, where you have got every single -- a very focused company on one single vertical from top to bottom, from supplier to customer, all using that same thing.

Is that when the reasons you feel you are having that kind of success?

Yes, it is specialization of labor.

What are we doing?

We are focusing on the cloud.

It is a $1.6 trillion industry.

We are focusing on the things that are important to the ceo's of the companies.

How can they bring drugs to market faster?

How can they commercialize their products before the patents expire is to mark how can they avoid these fines for noncompliance with regulation?

We are focusing on the higher- level issues, and we are trying to make a whole 1.6 trillion dollar industry more efficient, and that is why it is a big market opportunity.

One of the things about this market being with greater specificity?

On the client/server, and i lived there, you are trying to make software, and you are running around, trying to install it on everyone's servers.

You cannot collect all of the data from the customers together and provide insight on that.

The cloud model is better.

The client/server model is broken.

Is that because the drugs are so different, and each drug can focus on a very different sort of set of users and applications and problems?

It is more the client/server model.

When you are installing software on everyone, you have 10 different versions of software to deal with, and you cannot ever really get good.

Imagine installing a different application on everyone's phone.

It just would not work.

This can bring it together and doing really well in one place, and we can't collect data from its usage and provide that back.

It is a fundamentally better

This text has been automatically generated. It may not be 100% accurate.

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