![]() A successful SaaS business model requires more than a reference in sales collateral and an uncompelling purchase option in the price list. Regardless, the story of Frame.io is as much a discussion of a business model and plan, as it is a creative success. In our experience, the closer you get to Hollywood, the more difficult it is to have a business discussion. This is reasoning from corporate objectives, though it reflects the deeper, operational benefits. For those suppliers (and we argue those customers) wanting to enjoy the valuation levels of peers, you need to be in the cloud. But to that same audience, we submit all the corporate value (budgets, senior executive attention, citations in investor communications, etc.) has or will rapidly transition to cloud-based workflows. To the technology curmudgeons, we grant you there remain technical hurdles preventing all workflows moving there tomorrow. We suspect the statement on cloud will draw some intense reaction from certain corners of the sector. Any technology professional in the media technology sector (customer or supplier) dithering about moving to the cloud is likely harming their organization’s shareholder value.With few exceptions, any suppliers with outside investors must transition to a SaaS business model as fast as possible to maximize shareholder value.This transaction codifies two observations for the media technology community. Observation 1: SaaS, cloud is the future and the now For the avoidance of confusion, Frame.io integrates with editors and VFX tools, and other components of the post-production workflow such as transcoding or storage, it does not replace them. The value proposition is bringing – and organization – shot content and in-process content from the production environment to the post-production environment, and then enabling efficient, collaborative work across the post-production team. In the parlance of the IABM DC Global Market Valuation Report (GMVR), Frame.io offers a production asset management (PAM) system with a bit of workflow orchestration. To level a common understanding, it is necessary to categorize what Frame.io sells. Feel free to leave feedback in the comment section of this post, the associated post on Twitter or Linkedin, or to me personally (jstinehour Devoncroft com). ![]() We are welcoming of your individual perspective on how one might work out the valuation or any comment you would like to add to the discussion. To spoil a takeaway from the latter part of this post: we do not have an explanation for the valuation level. Permit us a few observations and at least one rant. ![]() We are at a loss to even cite a historical analog for such a deal (IBM buying Aspera? AWS buying Elemental?). A more than 15x cash-on-cash return on the aggregate amount of funding raised by Frame.io. It is remarkable for a business to achieve an all-cash $1 billion+ cash exit shortly after celebrating the sixth anniversary of its launch – and within the post-production technology sector. The deal is expected to close during Adobe’s fourth quarter (which begins in September). Last Thursday (8/19) Adobe announced its intention to acquire Frame.io, a video review and collaboration platform, in a $1,275,000,000.00 all-cash transaction.
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