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Build A Recurring Revenue Stream With Private Label Hosted Services

Build A Recurring Revenue Stream With Private Label Hosted Services Doug Plympton & Patrick Siska groupSPARK Partner Program August 12-13, 2008 Agenda Introductions SaaS Market Overview groupSPARK Company Overview Suite of Hosted Services “Web Hoster ” Case Study

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Build A Recurring Revenue Stream With Private Label Hosted Services

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  1. Build A Recurring Revenue Stream With Private Label Hosted Services Doug Plympton & Patrick Siska groupSPARK Partner Program August 12-13, 2008

  2. Agenda • Introductions • SaaS Market Overview • groupSPARK Company Overview • Suite of Hosted Services • “Web Hoster” Case Study • Private Label Hosted Exchange Live Demo • Question and Answer

  3. Software as a Service Huge growth ahead - $16 billion in 2011 (IDC) Early Majority Early Adopters 34% 34% Late Majority 13.5% 16% 2.5% Laggards Innovators Rogers Adoption / Innovation Curve © 12manage.com

  4. Customers Want SaaS

  5. Software as a Service The Opportunity • Offer higher value, mission critical services: • Exchange, SharePoint and CRM increase ARPU • Alternative to non-revenue producing POP3 • Lack of business-class hosted services makes SMB’s look for new providers • Slow customer churn with stickier applications • Web hosting churn is typically 3-5%/month and very expensive to maintain customer base • Acquire new customers and differentiate yourself from your competition

  6. Building A Per User Revenue Platform

  7. About groupSPARK • In hosting business since 1997 • Founded in 2002 with Exchange hosting and started selling in February 2004 • 100% U.S.-based – no outsourced operations • Live 24x7 email, phone and online chat technical support • N-tier reselling support • Unmatched 100% uptime SLA on dedicated servers, 99.9% uptime on shared servers • Offer additional services such as mobile device support, archiving and spam filtering

  8. Hosted Exchange Buyers’ Checklist • 100% uptime SLA • Pooled storage space • No min. mailboxes, requirements or upfront investment • Hosted Exchange/MCP experts on staff • Microsoft HMC platform scalable to 1 million mailboxes • Additional hosted services – archiving, mobility, etc.

  9. Seismic Hosted SharePoint Key Features • We offer Windows SharePoint Services 3.0, not MOSS (Microsoft Office SharePoint Server) • Not a per user/mo; rather it’s a per site/month. Plans driven by storage needs • Document Sharing / Collaboration • Store documents; MS Office saves directly back to SharePoint • Check-in & check-out: Documents can be reserved by individual users for updating purposes. • Save previous versions: Document changes are tracked and assigned different version numbers for auditing and rollback. • Microsoft Office Integration • WSS Documents can be cached for offline use in Outlook • Link contacts, calendar, tasks as new folders in Outlook • Export lists/databases into Excel/Access for manipulation • Browser-based customization • Easy to modify and view • Permissions: read, write, view • 40 Templates: CRM, Help Desk, IT, bug-tracking, Absence Request, verticals, Sports team tracking • Wiki’s • Blogs

  10. $20+/user/mo • Add-ons are Key • 3-5% churn/mo A Web Hoster’s SaaS Story Hoster “Anonymous” • Private Label • Tier 1 Support • Banks & Public • Internap

  11. A Web Hoster’s SaaS Story • No marketing push: 5% mo. growth • Marketing push: 10-15% mo. growth

  12. A Web Hoster’s SaaS Story Avg. Revenue Per User/Mo. (ARPU) Total ARPU: $20.61/user/mo.

  13. A Web Hoster’s SaaS Story

  14. A Web Hoster’s SaaS Story

  15. Private Label Hosted Exchange Live Demo

  16. groupSPARK vs. Microsoft Online • Customer Ownership & Relationship • Private Label, Branding control • Consistent Support • Bundle with other services • Maximize Revenue (ARPU >$20/user/mo) • Pricing Flexibility – per customer • Upsell more services (BES, Archiving, larger mailboxes, etc) • High Gross Margins – 40%+ • Sell to wider range of customers: • Outlook 2003 and older • Windows Mobile 5 and older, BlackBerry • Mailboxes 15GB • Mac support • 6 years of experience to help you sell • Live in 30 Minutes! Customer Relationship and Revenue • Platform Providers with a Basic Value Proposition • Calendar | Contact | Task Sharing • Information Workers • Task Workers

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