Pivotal Software – A pretty platform for big, ugly applications.

Pivotal Software ($PVTL) went public on Friday at $15/share. The offering didn’t get a resounding vote from the markets. Unlike other recent enterprise software deals, this one ended quietly at $15.75.

We think PVTL is likely to do well from these levels. Partly because investors focused on “slowing growth” in revenues. That misses the most valuable aspect of the growth story - services revenues are actually declining YoY while software subscription revenue growth remains robust.

The table below illustrates the underlying dynamics. Note not only the growth in SaaS revenue but also . . .