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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

Doug Plympton & Patrick Siska

groupSPARK Partner Program

August 12-13, 2008

agenda
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
software as a service
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

software as a service5
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
about groupspark
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
hosted exchange buyers checklist
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.
seismic hosted sharepoint key features
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
a web hoster s saas story

$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
a web hoster s saas story11
A Web Hoster’s SaaS Story
  • No marketing push: 5% mo. growth
  • Marketing push: 10-15% mo. growth
a web hoster s saas story12
A Web Hoster’s SaaS Story

Avg. Revenue Per User/Mo. (ARPU)

Total ARPU: $20.61/user/mo.

groupspark vs microsoft online
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