Good overview. I view the transition to SaaS revenue growing strongly and contributing to most of the overall revenue growth as a positive, as it improves of the quality of the revenue despite creating some short-term headwinds to growth. OCL should have it's "RUL" moment over the next couple of years.

@Valueinvestor0909 Your article says "If they manage to transition all ECM customers to Nexus in the next four years", surely think there is zero chance of that happening. In my experience government customers are very slow at upgrading systems or moving to the cloud. The reason is that Ministers are usually funding some new initiative rather than improving current systems. Also government don't have a CFO that can recognise and drive cost savings so they often don't care about putting in a big IT project to reduce cost. Also, on-prem system are often integrated with many other legacy systems within a department, so to move to multi-tenant cloud (such as Objective Nexus) is almost impossible unless there is a shared integration service on the new cloud offering AND you have a few spare solution architects lying around from each legacy vendor to make it happen. Typically the easier implementations will move to cloud over time, but surely there are some that may not move in the medium term.

Regarding the 1.5x to 2.5x uplift in USP by transitioning to the cloud, I'm struggling to understand how they are calculating this metric. Moving from on-prem to cloud means that the customer saves on paying for hosting costs and this is gained by the SaaS vendor who perhaps can leverage hyperscalers. Typically the hosting costs are between 10% and 20% of the overall cost of an enterprise system. So maybe they can get 1.2x? I.e. there licence fee for the on-prem system plus 20% to cover the hosting. My guess is that they must be consolidating several other vendors systems onto their cloud product. I understand that records management in government is often TRIM/Content Manager, which staff seem to dislike, so perhaps if a department has been merged with another department, which happens every 5 years or so, then they could be consolidating onto the Objective Nexus product. IT would be keen to do that because it makes their job of vendor management a lot easier. Maybe that explains the 2.1x they have achieved so far. That would be a good question to ask them.