Google Apps Business Plan

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This paper serves as a business plan prepared for Qualitynet for the introduction of Google Enterprise services in the State of Kuwait. April 21, 2010

TABLE OF CONTENTSEXECUTIVE SUMMARY 3

ORGANIZATION BACKGROUND AND VISION 4 CLOUD COMPUTING AND BENEFITS 4Whats in the Cloud for the Customers 5 Whats in the Cloud for Us? 5

THE SERVICES AND PRODUCTS 6 OUR COMPETITIVE ADVANTAGES 7 SALES AND MARKETING STRATEGIES 8Marketing Strategy Sales Strategy 8 10

FINANCIAL STRATEGY

11 11 11 13 14

Sources of Income Revenues and Costs Income Statement 2Yr Quarterly Plan Financial Forecast 5Yr Plan

OPERATIONS STRATEGY 15GAARP 15

APPENDIX A 17

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APPENDIX B 18 APPENDIX C 19 BIBLIOGRAPHY 20

EXECUTIVE SUMMARYQualitynet, the largest Internet Service Provider and a leading total solutions provider in the State-of-Kuwait, was established in 1998 in response to a public offering by the Ministry of Communications, as part of their strategy to privatize Internet and data communication services within the State of Kuwait (Qualitynet, 2010). Qualitynet launched their date communications infrastructure and an Internet Gateway in September 1998, to provide Internet services and private data communications services to the Kuwaiti public and corporate sector. Based on Qualitynets experience in the market, broadband services have become somewhat of a commodity in the Kuwaiti market where it is getting difficult by the day to differentiate one Internet Service Providers (ISP) offerings from the other than from a price point of view. Churn is high; however, the bottom-line stays stagnant. Qualitynets vision is to become the leading total solutions provider and, while maintaining the broadband services as its bread-and-butter, reduce its dependency on revenue generated from providing internet services. With the diversification vision in focus, Qualitynet seeks to establish an exclusive partnership with Google Inc. and engage in the Google Apps Authorized Reseller Program (GAARP) in order to resell Googles Enterprise services in Kuwait. Aligning the Google brand name with Qualitynet will help solidify Qualitynets position in the market as an innovative organization and divorce its sole recognition as an ISP. Google Enterprise products are designed to provide the same level of simplicity, efficiency, and security to corporate users that consumers are obliged with by Googles search and collaboration services. By hosting its services in the Internet Cloud, Google aims to reduce the total cost of ownership of products that typically call for significant Capital Expenditure. As stated on Googles reseller portal, in excess of One Million businesses use Google Apps, the suite of software-as-a-service for business email, information sharing and security. Over 3,000 new businesses ENTREPRENEUSHIP ROBERT KENNEDY COLLEGE 3

sign up every day, spanning small companies to large corporations such as Genentech and Hamilton Beach. Google Apps is available globally, offered in 46 countries and in 27 languages (Google Apps Reseller Program, 2010). Kuwait, the seventh richest country in the world per capita (Nominal GDP $114.878 Billion) (CIA World Factbook, 2009), is now becoming cost sensitive given the recent global economical crunch. Every organization is looking to reduce Capital Expenditure and invest only in predictable and stable Operations Expenses. Google Enterprise products will serve the market immensely during this time of pennypinching, allowing the organizations more flexibility and the sense of financial relief. The Google Enterprise services, and more so Qualitynets association with Google, should be marketed heavily to indicate Qualitynet as the first-to-the-market with Cloud Computing and the first and only organization to bring Google into Kuwait.

ORGANIZATIONAL BACKGROUND AND VISIONWe started off in 1998 as an Internet Service and Data Communications Provider for the State of Kuwait. As a pioneer to the market, we have seen the hay days with revenues exceeding the business plan every year. Since then, four competing entities have entered the market and claimed their share of the market. Our vision, lately, has been to decrease our sole dependence on Internet Services and integrate value added and solution services that either compliment and strengthen our core competency (internet and data communication services) or are, at least, in-line with our strategy to provide Information Technology solutions to the market.

CLOUD COMPUTING AND BENEFITSBefore we divulge into product descriptions, it would be feasible for us to first take a look at Cloud Computing, what it stands to deliver, whats in it for the customer, and whats in it for us. Cloud computing is, the latest technology trend that involves Internet-based computing, whereby shared resources, software applications, and other types of pieces of information are provided to users to be accessed through desktops, laptops, smart phones, and other devices on-demand, like a public utility (Rittinghouse, 2010). Figure 1.1 illustrates how cloud computing works:

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Figure 1.1 Cloud Computing (Computer Applications and Data stored at the internet level to be accessed) In 2008, Gartner saw an opportunity for cloud computing "to shape the relationship among consumers of IT services, those who use IT services and those who sell them", and observed that "organizations are switching from company-owned hardware and software assets to per-use service-based models" so that the "projected shift to cloud computing ... will result in dramatic growth in IT products in some areas and significant reductions in other areas" (Gartner, 2008).

Whats in the Cloud for the Customers?1. Makes the user agile in the sense that the re-provisioning of infrastructure resources can be done rapidly and inexpensively 2. Significant cost reduction 3. Converts CAPEX into predictable OPEX 4. Mobility information can be accessed on the fly from almost all internet capable devices 5. Secure resource sharing for numerous users 6. Increased security due to the centralization of Data and the warranting of data-chopping 7. Maintenance costs are reduced since applications need to be maintained once at the Cloud level instead of every single machine ENTREPRENEUSHIP ROBERT KENNEDY COLLEGE 5

Whats in the Cloud for us?1. Dynamic, secure, reliable, and agile service offered to the market 2. Significantly low cost offering With a price sensitive market, the low cost will attract many 3. No CAPEX required 4. Minimal OPEX 5. The state-of-the-art SLA and Uptime (99.99%) encourage minimal support and maintenance expenses (Google Apps SLA, 2010) 6. The Cloud is very trendy and non-existent in Kuwait. We will be the first to the market. 7. Aligning our brand name with that of Google will speak highly of our capabilities as an innovative business development entity 8. Offering Google services will help reposition our perception in the market as a total solutions provider instead of just an ISP 9. Google has a great reputation and considerable references which alleviate pressure from the sales executives in offering a new service to the market 10.Recurring revenue model

THE SERVICES AND PRODUCTSSince we now have established a brief understanding of what exactly Cloud Computing is and what its benefits are, we can divulge into understanding the Google products and services Google Enterprise offers the following products: 1. Google Apps 2. Postini Services 3. Earth & Maps 4. Enterprise Search

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Google Apps

Postini Services

Earth & Maps

Enterprise Search

Figure 1.2 Google Enterprise Services

Google AppsGoogle Apps is a service from Google for using custom domain names with several Google mailing and collaboration products. It features several Web based applications with functionalities similar to traditional office suites (such as Microsofts Word, Excel, etc.), including: Gmail, Google Calendar, Talk, Docs and Sites. Since this is a web based service, the need to purchase hardware (computer servers), storage (hard disk drives to store data), software, and software licenses is eliminated with a very feasible and predictable monthly user fee.

Google Postini ServicesGoogle acquired Postini (an email security solution provider) in 2007 as a strategic move to enhance its email offerings by adding state-of-the art email security that provides security to the client at the gateway instead of their local servers. Postini email security provides web based services such as anti-spam, antivirus, and antimalware.

Google Earth & MapsGoogle Earth and Maps provides location based services where an organization can incorporate its data into Google Maps (Googles mapping service) and Google Earth (a virtual globe, map, and geographical information program) to be shared quickly and easily with employees, social groups, and clients (e.g. Pizza Hut may integrate all of its location addresses and contact information into Google maps for the ease of its customers). Since Kuwait is limited geographically with a total area of 6,880 square miles and a population density of only 433.8 square miles, most of the population already knows where most places of interest are located and scarcely use online location information services. Hence, the Google Earth and Maps service will be kept on the back burner until a few years till the trend sets in.

Google Enterprise SearchThe Google Search Appliance (GSA) is designed to provide the same search simplicity and efficiency within an organizations intranet that Google provides with its search engine. GSA brings swift and pertinent search to the organizations website or intranet, whether thousands, millions, or even billions of documents have been indexed.

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OUR COMETITIVE ADVANTAGESWe have been the largest ISP almost since our inception. Being a part of large groups such as The Batelco Group and Ali AlGhanim Group of Companies gives us the financial freedom and market status that many organizations lack. The AlGhanim family is widely known in the market as one of the strongest in a country run by families. Their strong ties within the Government sector and the large enterprises will give us a way in. Furthermore, over the last 12 years, we have gained a firm hold in the market and have established an extensive customer database with which we have very strong relationships. This group will be our first sales target and this group will promote us (word-of-mouth). It is because of all these reasons that Google has agreed to allow us to represent them in this region.

SALES AND MARKETING STRATEGIESMarketing StrategyTarget Market: The prominent aspect about Google Apps and Google Postini is that the business model works on almost any level. Our customer can be a 2-man shop or a 1000+ users enterprise and from any industry, Google Apps will deliver a significant reduction in TCO. GSA, however, in aimed for large enterprises with a 500+ user base. The table below elaborates further on the target markets: GOOGLE ENTERPRISE SERVICES TARGET MARKETS AND THEIR SIZES SERVICE TARGET MARKET SIZE ENTREPRENEUSHIP ROBERT KENNEDY COLLEGE 8

GOOGLE APPS GOOGLE POSTINI GSA

SOHO SMB ENTR SOHO SMB ENTR ENTR

1 USER 4000 USERS 1 USER 4000 USERS 500+ USERS

TABLE 1.1 GOOGLE ENTERPRISE SERVICES MARKET INFORMATION

We have seen that Kuwait has, to a certain degree, been affected by the global economic crunch. In 2009 the economy contracted 2 pct. However, the economy is still at a $28.81 Billion surplus as compared to 2008 with a $40 Billion surplus (Maktoob Business, 2010). So while the spending is still there, it is being watched and scrutinized. Coming up with a service that strives on reducing Total Cost of Ownership (TCO), one that will eliminate CAPEX and allow for nominal OPEX, will play a vital role in capturing the market. Furthermore, Google has amazing brand recognition as one of the leading IT companies in the world. Aligning the our brand name with that of Google will help us accomplishing our vision of reposition us as a leading total solutions provider and an ISP instead of being just an ISP. After the test pilot with NBK, we will conduct a press release with the primary focus on making the market aware that a) we have Google b) we are the first ones to the market with Cloud computing, and c) we have the customer in mind since we are bringing an extremely affordable solution to a very cost sensitive and almost recession struck market. We will utilize the Google Solutions Marketplace, a free of charge service from Google to its partners that links customers to vendors whose solutions integrate and extend Google's communication, collaboration, and enterprise search products. It's a free service and a great way to get [our] product in front of Google Apps customers that are looking for custom development services and complementary products (Google Apps Reseller Program, 2010). This activity is to be done in parallel with the press release. On our corporate website, we will make the necessary artwork and amendments to the Content Management System (CMS) to include the introduction of Google Enterprise services on the main page in the flash banner. Last but certainly not least, Google provides marketing tools such as collateral design, branding, and cost savings calculators to support its partners marketing campaigns. They also offer region specific ideas on how to promote the services effectively. These are to become the Marketing teams bible to promote the new services (Go To Market Google Apps, 2010).

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We will also send mailers (email and print) to targeted customers. 200 mailers will go out every month of the first quarter and then the frequency will be reduced by 20%. To take it to the next level, and really spread the word of mouth, we will participate in a conjoint and co-funded seminar with Google inviting our existing top 50 customers and 20 new customers to come see a senior manager from Google face to face who will be able to address their questions and concerns. The Google story and business case will carry more weight coming directly from the horses mouth. For all the marketing expenses, we will dedicate 5% of the total revenue.

Sales StrategyThe philosophy behind selling Google Enterprise services is to make the investment for the customer a no-brainer. How we do that is present a TCO model for the customer and shows them the power of Google Enterprise services and how, at the end of the day, they benefit financially and more importantly, how they can realign ENTREPRENEUSHIP ROBERT KENNEDY COLLEGE 10

their focus to their core competencies instead of over indulging in mail server administration...

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