freemium route to enterprise, by scott irwin, general partner, rembrandt venture partners
DESCRIPTION
From a talk delivered to Freemium SF Bay Area Meetup Group @Founders Den, San Francisco, CA. Published with permission.TRANSCRIPT
F r e e m i u m t o t h e E n t e r p r i s e
Freemium MeetupFounders Den
9/13/2012
2C O N F I D E N T I A L D O N O T R E P R O D U C E
Enterprise Incumbents (1990s)
S E R V I C E S
A P P L I C A T I O N S
O S
D A T A B A S E
S E R V E R S
N E T W O R K
S T O R A G E
vs.
vs.
vs.
vs.
vs.
vs.
vs.
3C O N F I D E N T I A L D O N O T R E P R O D U C E
Incumbents Competing (2006)
S E R V I C E S
A P P L I C A T I O N S
O S
D A T A B A S E
S E R V E R S
N E T W O R K
S T O R A G E
4C O N F I D E N T I A L D O N O T R E P R O D U C E
Cutting R&D, Accumulating Cash
2006
2007
2008
2009
2010
$91 Billion
$126 Billion
3.9%
2.3%
Hewlett Packard
Revenue
% R&D
2006
2007
2008
2009
2010
$107 Billion
$244 Billion
Cash Reserves
5C O N F I D E N T I A L D O N O T R E P R O D U C E
Incumbents Competing (2012)
S E R V I C E S
A P P L I C A T I O N S
O S
D A T A B A S E
S E R V E R S
N E T W O R K
S T O R A G E
SAAS
SOCIAL
CLOUD
MOBILE
DEV TOOLSVIRTUALIZATION
SECURITY SYS MGMT
BIG DATA
6C O N F I D E N T I A L D O N O T R E P R O D U C E
Enterprise 2.0 is…
Software People Enjoy Using
Built on Cheap Infrastructure
Available Everywhere
Freemium
7C O N F I D E N T I A L D O N O T R E P R O D U C E
Enterprise 2.0 is…
Software People Enjoy Using
8C O N F I D E N T I A L D O N O T R E P R O D U C E
Enterprise 2.0 is…
Built on Cheap Infrastructure
2001
$15-20 MILLION
24-
36 MONTHS
2012
$1-2 MILLION
6-12
MONTHS
9C O N F I D E N T I A L D O N O T R E P R O D U C E
Enterprise 2.0 is…
Available Everywhere
10C O N F I D E N T I A L D O N O T R E P R O D U C E
Enterprise 2.0 is…
Freemium Business Model
Revenue
Cost of Sales
Volume
DISRUPTING
11C O N F I D E N T I A L D O N O T R E P R O D U C E
Scott Irwin
Enterprise 2.0: Calling Consumer Internet Entrepreneurs
Enterprise 2.0 GTM Models
1. Part 1: Freemium First, Enterprise Second
2. Part 2: Inside Sales
3. Part 3: Selling Value