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SafeHatch LLC Confidential & Proprietary All Rights Reserved © SafeHatch LLC 1 SaaS Software as a Service SaaS as the Ultimate… Disaster Avoidance Model Security & Compliance Tool Darling of the Private Equity Marketplace

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Page 1: SaaS Software as a Service

SafeHatch LLC

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SaaSSoftware as a Service

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

Page 2: SaaS Software as a Service

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SaaS - Agenda

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

Page 3: SaaS Software as a Service

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SaaS - Software as a Service

SaaS What?

Page 4: SaaS Software as a Service

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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?”

Page 5: SaaS Software as a Service

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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”

Page 6: SaaS Software as a Service

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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

Page 7: SaaS Software as a Service

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SaaS - Software as a Service

SaaS for Disaster Avoidance

Page 8: SaaS Software as a Service

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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

Page 9: SaaS Software as a Service

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SaaS for Disaster Avoidance

• 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)

Page 10: SaaS Software as a Service

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SaaS for Disaster Avoidance

• 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)

Page 11: SaaS Software as a Service

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SaaS - Software as a Service

SaaS for Security & Compliance

Page 12: SaaS Software as a Service

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SaaS for Security & Compliance

• 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!

Page 13: SaaS Software as a Service

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SaaS for Security & Compliance

• 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?

Page 14: SaaS Software as a Service

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SaaS - Software as a Service

SaaS and thePrivate EquityMarketplace

Page 15: SaaS Software as a Service

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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

Page 16: SaaS Software as a Service

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SaaS and the Private Equity Market

• 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!

Page 17: SaaS Software as a Service

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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

Page 18: SaaS Software as a Service

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SaaS and the Private Equity Market

• 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.

Page 19: SaaS Software as a Service

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SaaS - Software as a Service

SaaS StartupExample

Page 20: SaaS Software as a Service

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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

Page 21: SaaS Software as a Service

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SaaS – Startup Example

• 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

Page 22: SaaS Software as a Service

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SaaS – Startup Example

• 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

Page 23: SaaS Software as a Service

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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

Page 24: SaaS Software as a Service

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SaaS - Software as a Service

Some Basic Resources

Page 25: SaaS Software as a Service

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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

Page 26: SaaS Software as a Service

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SaaS – Final Q&A

?

Page 27: SaaS Software as a Service

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Like They Used to Say in Ancient Egypt

That Wraps Up Another One

Page 28: SaaS Software as a Service

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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