The Agreement Cloud Is Going To Be The Next Big Cloud, Says DocuSign CEO

The new cloud opportunity that we see is in the Agreement Cloud, says DocuSign CEO Dan Springer. It is going to be the next big cloud because we think this is about bringing multiple clouds together. ...
The Agreement Cloud Is Going To Be The Next Big Cloud, Says DocuSign CEO
Written by Rich Ord

“The new cloud opportunity that we see is in the Agreement Cloud,” says DocuSign CEO Dan Springer. “It is going to be the next big cloud because we think this is about bringing multiple clouds together. We work strongly with ERP and strongly with CRM. We’re actually finding opportunities increasingly every day to make the other cloud investments that people are making have more value before them by bringing them together. What connects them is the agreements those companies do.”

Dan Springer, CEO of DocuSign, discusses their launch of the Agreement Cloud and how it will transform companies to more easily work together and “be more agreeable.” Springer was interviewed on CNBC:

DocuSign Helping Companies Be “More Agreeable”

We’re super excited about the DocuSign Agreement Cloud. We realize that our customers have said e-signature is a fantastic foundation for their business. But they have a broader set of needs around the way they not only sign agreements but the way they prepare them and the way they manage them after they’ve been signed. So we’ve built out a broader suite of products and that’s what we’re bringing to market today. 

I think it’s key, the connectedness that Slack is seeing and pushing for is very similar to what we see as well. Companies want to be, in our terminology, more agreeable. Those are the communications they want to have within their companies or their back-office functions that they’ve tried to digitally transform, but also for the front office. They really want to have a customer experience that is what the customers expect so they will be easy to do business with. We see that the Slack moves are very similar to what we’re seeing in the Agreement Cloud.

The DocuSign Agreement Cloud Explained

We Like To Talk About How DocuSign Is Unusual

We’re super excited about the core e-signature business. While we talk about the Agreement Cloud, we think that’s the broader opportunity to really make this one of the most significant cloud opportunities. We don’t in any way want to move away from the excitement we have over the course e-signature business. It’s sort of what brought us to the dance. If you think about the roughly billion dollars of revenue that we will deliver this year the bulk of it will still come from e-signature. The growth opportunities are very broad. 

We like to talk about the fact that DocuSign is unusual. We serve from the smallest business to the largest enterprise and across all verticals. We are excited to talk about federal. We had our first million-dollar ACVD deal that we just announced in the quarter. So it’s not just that segment, it really is very broad. We think financial services will continue to be a driver for us and as I mentioned federal will be exciting. You’re going to see us continue to expand internationally and domestically. It really is a broad-based opportunity.

The Agreement Cloud Is Going To Be The Next Big Cloud

If you think about the overall TAM, e-signature is a $25 billion dollar market. With the broader Agreement Cloud that gets into a magnitude of many billions more, maybe doubling the overall opportunity. When you think about the competitive set it’s so early. We’re only about four or five percent penetrated in the core signature business and less on the broader ones. When we actually talk about competition, we talk about paper and manual processes. This business is so early days. We’re in the early innings. We believe that our biggest competition really is paper and manual processes. We like to say it’s a great competitive set to have because they don’t fight back very hard. It’s just a matter of time before we really are going to be able to replace and modernize those systems.

When you think about the infrastructure side, it’s a huge part of where the cloud is going. We’ve been much more focused on the application and thinking about that end-user value. But on the infrastructure side, I think it’s a hugely competitive space. It used to be looking like a two-horse race with Microsoft and Amazon. Now looking at some of the other players, such as what Google’s doing, I think you’re going to see more and more competition in that space. I don’t think it’s going to be necessarily bad for those players because it’s a really large expanding market. 

On the application side, the new cloud opportunity that we see is in the Agreement Cloud. It is going to be the next big cloud because we think this is about bringing multiple clouds together. We work strongly with ERP and strongly with CRM. We’re actually finding opportunities increasingly every day to make the other cloud investments that people are making have more value before them by bringing them together. What connects them is the agreements those companies do.

The Agreement Cloud Is Going To Be The Next Big Cloud, Says DocuSign CEO Dan Springer

Get the WebProNews newsletter delivered to your inbox

Get the free daily newsletter read by decision makers

Subscribe
Advertise with Us

Ready to get started?

Get our media kit