If you understand the SAP and Oracle businesses and that of the ASG group (ASZ) in the more
traditional IT space - it is not difficult to envisage a BPF now heading into the larger businesses/enterprise space , in a couple of years it will have the skill sets of ASZ + the recurring revenue from their fast growing public and private cloud managed/hosting services. Possibly half their revenue could be recurring in excess of 5+ years + the the half from sticky trusted partner design/consulting/implementation/support services.
The traditional IT dept in much larger businesses/enterprise is history -
guys like BPF are taking their place. The commodity small biz end will be serviced by the
much smaller capital-constrained unlisted guys.
Your issue with buying capacity up front - that is now for one year instead of 3 years.
The impact is a minor cash flow issue on my calcs - best to look at the adjusted Underlying profit.
BPF Price at posting:
41.5¢ Sentiment: Buy Disclosure: Held
