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Industry-specific cloud solutions are the largest segment of the software market, or a $100B opportunity. By reducing or eliminating the need to customize, industry cloud solutions can deploy faster and they offer significant data advantages and insight as compared to vertical solutions. This presentation offers insight into some of the fastest-growing industry cloud companies including: -Veeva -Guidewire -Opower
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E M E R G E N C E C A P I T A L P A R T N E R S
INDUSTRY CLOUD
FORUM 2014
L E A R N I N G F R O M T H E L E A D E R S
@ e m e r g e n c e c a p
# I N D U S T R Y C L O U D
Peter Gassner, CEO, Veeva Systems
Marcus Ryu, CEO, Guidewire Software
Dan Yates, CEO, Opower
The Industry Cloud OpportunityPeter Gassner, CEO
®2014 Veeva Systems – Company Confidential veeva.com | 3
VisionBecome the Leading Cloud Solutions Provider to the
Global Life Sciences Industry
ValuesCustomer Success
Employee Success
Speed
®2014 Veeva Systems – Company Confidential veeva.com | 4
Veeva Highlights
Founded in 2007
700+ employees
200 customers, users in 80 countries
Mix of cloud and industry experts
High growth and strong profitability
Fiscal Year Ending January 31
Reconciliation of non-GAAP measures is contained in Appendix.
$29m
$61m
$130m
$210m
$5m $7m
$30m
$47m
FY’11 FY’12 FY’13 FY’14
110%
111%
62%
Revenue Non-GAAP Operating Income
Revenue and Profitability
®2014 Veeva Systems – Company Confidential veeva.com | 5
Veeva Spans an Entire Life Sciences Company
RegulatoryClinical
Trials
Quality and
ManufacturingMedical Marketing Sales
Research & Development Commercial
®2014 Veeva Systems – Company Confidential veeva.com | 6
Veeva Commercial Cloud
®2014 Veeva Systems – Company Confidential veeva.com | 7
Industry Cloud is Disruptive InnovationFrom Nowhere to 4th Most Preferred Life Sciences Software Vendor, IDC Health Insights
Source: IDC Health Insights' Leading Indicators in Life Science IT Spending Survey, 1Q14
Ranking 2014 2013 2012
Vendor Vendor Vendor
1 Oracle Oracle Oracle
2 SAP SAP Apple
3 Symantec Symantec SAP
4 Veeva SAS SAS
5 SAS IBM Microsoft
6 IBM Microsoft Symantec
7 Microsoft Apple IBM
8 Apple Veeva
®2014 Veeva Systems – Company Confidential veeva.com | 8
Industry-specific is the Largest Segment of the Software Market Total Worldwide Software Market Share, 2012
28%
8%
7%
7%6%
5%
5%
5%
5%
4%
4%
3%
3%
10%Vertical Specific Software
Operating Systems
Other Application Software
Database Management Systems
ERP
App Infrastructure / Middleware
Security
CRM
IT Operations
Office Suites
Storage Management
Business Intelligence
Other Infrastructure Software
Other
Source: Gartner 2013
$100B
®2014 Veeva Systems – Company Confidential veeva.com | 9
Cloud Opportunity is GreaterIDC Research Cloud Software Analysis for salesforce.com, September 2012
On Premise Cloud
Five Year TCO per User
48% Cloud Cost
Savings59% IT Labor / Services
21% Infrastructure
20% Software
16% IT Labor / Services
36% Software
1.8x Premium
®2014 Veeva Systems – Company Confidential veeva.com | 10
Industry Cloud Opportunity is GreaterVeeva Systems Estimates
On Premise Cloud
Five Year TCO per User
48% Cloud Cost
Savings
10% Software
36% Software
3.6x Premium
10% Customization
16% IT Labor / Services
59% IT Labor / Services
21% Infrastructure
®2014 Veeva Systems – Company Confidential
“The real advantage of an industry-specific solution is that it eliminates, or
significantly reduces, the need to customize. We can deploy and achieve
business results faster. It is about speed to value.”
CIO, Top 30 Pharma
The Industry Cloud OpportunityPeter Gassner, CEO
© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.
Guidewire Software
Marcus RyuCEO, Guidewire Software
Industry Cloud Forum
3 June 2014
14
© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.
To build software products that transform the global P&C insurance industry…
Guidewire’s Mission
…and to ensure that every customer succeeds in the journey
15© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.
A Ubiquitous $2 Trillion Industry
Personal Lines
Automotive Residential
Earthquake
MortgageTravel
Pet Watercraft Personal Injury
Recreational Vehicle
Unemployment
Commercial Lines
Property Fleet Environmental
Ocean Marine
General Liability
Workers Comp Crime Inland Marine
Professional Liability Directors and Officers Machinery Farm
Business Interruption
Surety
Excess
16© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.
Spending Enormously on IT…
1 Gartner (2011)2 Guidewire estimate
Current2
Legacy
100% = $15 billion Software and Services Spend1
17
© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.
And Dependent on Legacy System
• 30+ year-old technology
• COBOL
• Mainframes
• Paper-intensive
• Hard-coded
Legacy systems lock in legacy strategy
18
© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.
19
Guidewire Proprietary and Confidential.
GROWTH
INDEMNITY LEAKAGEPRODUCTIVITY
EXPENSE
PREMIUMLEAKAGE
OTHER
Economic Stakes of Legacy Replacement
2.5−4.5 points of operating income
OPPORTUNITY:
Source: Guidewire Value Consulting and customer business cases
20
© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.
PolicyCenter
BillingCenter ClaimCenter
Guidewire InsuranceSuite
• Modern architecture
• Full legacy replacement
• Delivered as true product
• Flexible, upgradeable
21© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.
A New Generation
22
© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.
Live
PolicyCenter
BillingCenter ClaimCenter
Mobile & Portals
Data Management
DataHub InfoCenter
InsuranceSuite
PolicyCenter
BillingCenter ClaimCenter
A Platform For Transformation
Claims
Policies
301
534
50
292
56% frequency 17% frequency
policies
claims
24
Guidewire Proprietary and Confidential.
ARIZONA
25
Guidewire Proprietary and Confidential.
MULTI-NATIONALS
Serving A Global Customer Base (partial list)
FINLAND
ITALY
NEW ZEALANDU.S.
GEICO
CANADA U.K. FRANCE
RUSSIA
AUSTRALIA
SOUTH AFRICA
POLAND
MEXICO
PERU BRAZIL
JAPAN
BELGIUM
GERMANY
26
© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.
P&C insurance industry focus100%
Professionals worldwide1,200+
Customers in 19 countries; 110+ live160+
In TTM revenue, growing recurring revenue >20% annually>$300m
28
Guidewire Proprietary and Confidential. Q2 2014
29
Guidewire Proprietary and Confidential. 2
9
Cloud software platform for utilities
30
Guidewire Proprietary and Confidential.
The opportunity
$2.2 trillion utility industry in an era of rapid change
Data-rich cloud software to engage utility consumers
93 utilities worldwide, reaching 32 million of their
consumers
MARKET
PLATFORM
CUSTOMERS
BUSINESS
Note: 710M potential end-users comprised of 650M households and 60M businesses.
710 million potential end-
usersMarket size
Accelerating leadScale of data set, platform
sophistication
Expansion potential10% penetrated with EE
clients
Visibility 90%+ recurring revenue
3
0
31
Guidewire Proprietary and Confidential.
» 23 clients
live with
EE
solution
» Raised B
round of
funding
» First 3
clients live
with Energy
Efficiency
(EE)
solution
» 43 clients
live with EE
and
Custom
Engagemen
t (CE)
solutions
» Raised C
round of
funding
» 63 clients
live with
EE, CE,
and
thermostat
solutions
» Expanded
to Europe
» 87 clients live
with EE, CE,
thermostat,
and
behavioral
demand
response
(BDR)
solutions
» Expanded to
Asia
» 93 clients
live with EE,
CE,
thermostat,
and BDR
solutions
» IPO
» 96
contracted
clients
» more than
100 billion
meter reads
annually
Evolution of the business
32
Guidewire Proprietary and Confidential. 3
2
Utility-focused platform and solutions
Thermostat
ManagementThermostat
Management
Personalization
Engine
Big Data
Analytic
s
Data Integration
System
Concurrent
Outbound
Messaging
Web &
Mobile
Framework
Energy efficiency Demand responseCustomer engagement Thermostat management
33
Guidewire Proprietary and Confidential. 3
3
Data advantage
MORE INSIGHT MORE TECH
52 MILLION energy consumers
300+ BILLION meter read data set
MORE DATA
PROPRIETARYalgorithms
100+ MILLION personalized touch
points
400+ Person years of
software development
70+ Utility websites on
one code base
2010 2011 2012 2013
36B
59B
88B103B
Annual meter reads
34
Guidewire Proprietary and Confidential.
Peter Gassner, CEO, Veeva Systems
Marcus Ryu, CEO, Guidewire
Dan Yates, CEO, Opower