DocuSign enabled many contract-based documents stored in the cloud and having a physical copy became optional. Other storage services are already offered in DocuSign so small competitor Document Security Systems is losing quite a big market share.
Possible buying DDS up strategy could be the wisest decision for DocuSign right now before this tiny company becomes seriously expensive. Right now DDS has more negative EPS than DocuSign while its market cap is relatively less than DOCU.
Since this April DOCU has more than doubled and keeps rising like Amazon but in small points. On the other hand, DDS is falling while facing insufficient revenue to cover the most expenses.
Before DDS gets more debts DocuSign could acquire to be a sole player temporarily. Other cloud service offering companies may consider jumping onto this fresh market.