SafeHatch LLC Confidential & Proprietary All Rights Reserved © SafeHatch LLC 1 SaaS Software as a Service SaaS as the Ultimate… Disaster Avoidance Model

SafeHatch LLC

Confidential & Proprietary All Rights Reserved © SafeHatch LLC 1

SaaSSoftware as a Service

SaaS as the Ultimate…Disaster Avoidance ModelSecurity & Compliance ToolDarling of the Private Equity Marketplace

SafeHatch LLC


SaaS - Agenda

• Quick – SaaS What?• Disaster Avoidance • Security & Compliance• Equity Opportunities• SaaS Example • Wrap

SafeHatch LLC


SaaS - Software as a Service

SaaS What?

SafeHatch LLC


SaaS What?

• Software as a Service– AKA – On-Demand or Subscription

Based Solutions– Usually sold by the seat based on the

“All You Can Eat” or Metered model• “SaaS is the Answer…

What Was the Question?”

SafeHatch LLC


Gartner Says…

• “Software as a Service Will Be The Business Model of Choice by 2008”

• “The North American On-Demand Market Will Grow From (estimated) $7.5B in 2003 to $41B by 2008, a 41% CAGR”

• “One Third of all New Software will be Delivered On-Demand by 2010”

SafeHatch LLC


What types of apps are firms buying“as a service”?

Base: North American Firms (SMBs and Enterprises)Source: Business Technographics® November 2004 North American Benchmark Study

39.80%

39.50%

35.70%

33.20%

29%

SFA & Marketing Automation

Communication & Collaboration

Procurement/sourcing

HR

Finance

SafeHatch LLC



SaaS for Disaster Avoidance

SafeHatch LLC


The Past is Prolog

• “This directive takes precedence over any and all other considerations, and carries with it the highest moral obligation.”

» Star Trek – The Prime Directive

• “Our primary responsibility is To Protect the Data - All other aspects of our job are secondary.”

» Me - Disaster Avoidance Seminar ICA-SuperCom, New Orleans 1997

SafeHatch LLC



• You have no Hardware to Maintain or Replace

• You have no Software to keep track of• You have no Backup Responsibility• You have no IT Personnel involvement

(in a pure SaaS model)

SafeHatch LLC



• You do have increased Due Diligence Responsibility Regarding your Provider

• You can (and perhaps Should) play an Active Roll in Backup

• You are, after all, Ultimately Responsible for YOUR Data (see the Prime Directive Slide earlier)

SafeHatch LLC



SaaS for Security & Compliance

SafeHatch LLC



• Assumptions that you should Validate - Your SaaS Partner…– Has a dedicated team to maintain and secure the

applications and your data– Can afford to provide “World Class Security

solutions” since they are delivering it to lots of clients

– The Safest Corporate Data is the Data that no one from Your Own Company (IT Group Included) can touch!

SafeHatch LLC



• Can You afford to build out, Maintain, and Certify a…– SAS70 Certified Solution– FIPS 140-2 Certified Solution– HIPPA Compliant Solution– Totally Secure Access Capability for Every

One of Your Users?

SafeHatch LLC



SaaS and thePrivate EquityMarketplace

SafeHatch LLC


SaaS and the Private Equity Market

• SaaS is, by its very nature, a Razor - Razor Blade Business Model

• Recurring Revenue is the BEST REVENUE especially when it comes with a Compelling ROI Model

• Its no longer Build vs. Buy – Now its Build vs. Buy vs. Rent

SafeHatch LLC



• SaaS is the “Perfect Storm” Outsourcing Model

• The first nn customers are very expensive to support and maintain

• But as the customer base grows the incremental cost per customer actually approaches ZERO!

SafeHatch LLC


SaaS = Hockey Stick Revenue Curve

SaaS Monthl y Revenue vs . Expense

$-$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,000$90,000

0 25 5010

015

025

050

075

0

1000

Cl ient Seats

Monthl y Revenue

Monthl y Expense

SafeHatch LLC



• So you Want to play in the On-Demand space but need help with…– Funding– Technical creation or transition – SaaS Market Understanding– Partner identification– Client Attraction and Retention Models– Pricing Performance Sizing etc.

SafeHatch LLC



SaaS StartupExample

SafeHatch LLC


SaaS – Startup Example

• Provide Totally Secure Communications and Collaboration Tools to…– Boards of Directors

• Public and Private Boards• Advisory Boards & Groups as well

– Private Equity Investors• Venture Capitalists• Angel Investment Groups

SafeHatch LLC



• Premise– Boards are comprised of Company

Executives, Outside Investors, Attorney and Accountant, Industry Experts, etc.

– They are rarely in the same place except for the BOD meeting but need to “meet” and collaborate before, during and after meetings

– No one is targeting the SMB BOD

SafeHatch LLC



• Provide a “Hosted Board of Directors Management Suite”, aka Portal, that includes…– Secure Email & Webmail– Private & Group Contact Management– Private & Group Calendars– Document and File Storage– Private & Group Discussion Boards– Secure Instant Messaging– Tasks and To-Dos– Web Based Meeting Capability– Secure & Managed Conference Calling

SafeHatch LLC


SaaS – Startup Example• Make this Service

– Affordable– Totally Secure

• SAS 70 Certified• Redundant• Centralized and Managed Backups• World Class Anti-SPAM, Anti-Virus Front End• Totally Segregated from any other Corporate Systems

– Did I Mention TOTALLY SECURE?– Now All You Have to do is Figure Out How to Sell It

SafeHatch LLC



Some Basic Resources

SafeHatch LLC


SaaS Support Links

• From SoftwareCEO.com:– CompTIA “Tools to Navigate the Challenges of Software as a

Service”– How to price subscription software—and how

salesforce.com does it by Bruce Hadley, March 30, 2004 – ROI INSIDER: SaaS: Is it a wise business investment?

Dan Merriman, Contributor 07.26.2006

• From Software Information & Industry Assoc. (SIIA):– Software Industry Executive Outlook 2005 Study

co-sponsored SIIA and Spencer Stuart

– The Secrets to SaaS Success – What it Takes to Get it Right December 2005

SafeHatch LLC


SaaS – Final Q&A

?

SafeHatch LLC


Like They Used to Say in Ancient Egypt

That Wraps Up Another One

SafeHatch LLC


SafeHatch LLC

For the Private Equity Investor:Technical Due DiligenceInvestment Support Services

For Young and Start-up Ventures:Business Acceleration ServicesValidation, Strategic Positioning, and Funding Support

Documents

SafeHatch LLC Confidential & Proprietary All Rights Reserved © SafeHatch LLC 1 SaaS Software as a Service SaaS as the Ultimate… Disaster Avoidance Model