Helping people work more effectively.
SMB SaaS Applications
- that Create Long-Term Revenue
Thomas Furr
CSO, Smart Online, Inc.
confidential
Discussion Highlights
• Why does Microsoft charge for application usage but not for
hosting and domain names?
• How do Hosting companies increase Average Revenue Per User
(ARPU)?
• How do Hosting companies create a Long Term relationship with
Customers?
High Growth Potential for Future Revenue
2
confidential
Agenda
• Smart Online Snapshot
• Hosting Strategic Priorities
̶ Compete with Microsoft OfficeLive
̶ Increase Revenue Per User
̶ Create Long Term Customers
• Summary & Conclusion
3
confidential
4
confidential
5
confidential
6
confidential
What makes us unique
• Full suite of daily use applications and tools to start and operate
a micro business (1 to 25 employees)
• Partnered with Parallels to enable hosting customers to rapidly
launch micro business applications to their business customers
• Scalable multi-tenant infrastructure and business model that
does not compete with hosting partners
• Ability to offer industry specific vertical solutions
• Low cost Software-as-a-Service (SaaS) solution
7
confidential
Unique End-to-End Products
Accounting Business Tools
• General Ledger • Business Plans
• Accounts Payable/Receivable • Job Description
• Electronic Invoicing • Marketing Plans
• Financial Statements • Legal Forms and Letters
Productivity Tools
Human Resources Management
• Shared Group Calendar
• Employee Records
• Contact Management
• Time Tracking
• Real-time Dashboards
• Vacation Tracking
• Customizable Reports
• PTO Requests
Sales & Customers (CRM/SFA) Websites and E-Commerce
• Sales Pipeline Tracking • Website
• Sales Projections and Forecasting • Order Management
• Customer Support • Distributor and Customer Management
• Request Tracking • Sales Compensation
• Automated Customer • Affiliate Integration
• Communication • Campaign Management
• Administration and Reports 8
confidential
Unique End-to-End Products
9
confidential
On-Demand Software-as-a-Service Statistics
• International Data Corporation (IDC) forecasts that the on-demand
market will grow at a 32% compound annual rate to $14.8 billion by
2011
• IDC polled 612 small businesses (less than 100 employees) in 2007:
1.3% already used a SaaS solution, 5.1% were planning to use a SaaS
solution within the next 12 months, 16.2% were interested in SaaS
solutions, 41.2% indicated no interest in SaaS applications, and 36.2%
did not know or had no opinion on the topic. We expect the “no
interest” and “do not know/no opinion” categories will decrease over
time as SaaS applications move into new markets and verticals.
• Access Markets International (AMI) Partners believes SaaS adoption is
rising steadily in the United States among small (1-99 employees) and
midsize businesses (100-999 employees). According to its estimates,
21% and 31% of respective small and midsize businesses use SaaS
solutions, double the percentage of adoption in 2004.
10
confidential
How do you compete with Microsoft OfficeLive?
• OfficeLive provides free hosting, email, and domain names
• OfficeLive charge for daily use applications
• Ways to Differentiate today:
̶ Leverage Parallels Application Packing Standard (APS)
automation for rapid launch of new small business daily
use applications
̶ Price bundles that package hosting, website, daily use
applications for customers
11
confidential
How do you increase Average Revenue Per User (ARPU)?
• Provide new offerings specific to Small Business needs
• Provide industry specific vertical Small Business solutions
• Hosting plus SaaS Small Business applications can
increase ARPU substantially:
̶ According Parallels for customers with an average of 8
employees this number can increase from $20 per
month to $180 per month
12
confidential
How do you create long term customers?
• Provide low cost Small Business solutions that create
efficiencies for your customers
• Get the Data in the Applications – Salesforce automation,
accounting, human resource management
• Provide superior customer support
13
confidential
Conclusions
• Hosting companies can compete with Microsoft OfficeLive - today.
• Hosting companies can increase Average Revenue Per User
(ARPU) - today.
• Hosting companies can create a Long Term Relationship with
Customers – today.
Smart Online and Parallels Creating
High Growth Potential for Future Revenue
14
confidential
For More Information
Thomas Furr
tfurr@smartonline.com
(919) 765-5000
15
confidential