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OX @OSBC: Delivering Productivity in the Open Cloud
Transcript
What is the business model?
- Freedom and flexibility to innovate
- Protection from traditional vendor lock-in
- Reduced software license costs
- Availability of development skills in-house
define rich
Start with free, be generous;
structure the model around:
- tailored support
- branded services
- customization
- premium paths-2-purchase
more than half of software spend in next 5 years to be open source.
You don't get to this scale without being open.
cloud
Upsell to users, not only to head of household / admin
What we learned re: upsell
- in-application selling works
- immediate buy, no big process
- immediate fulfillment
- generous trial period with opt-out
- generous money back policy
10x!!!
adjacent
services
sell
how?
create
- Second year: Your user base * 2% * $60 plus the above your second
- Create adjacent services - up & cross-sell
- In application storefront works better than app store
- Consumer and business upsell paths
- Business conversion rate between 1% and 10% per year
- CMGR 6-10%, CAGR > 100%
- From zero revenues for Mail to $60 per year/user
- First year revenues: Your active webmail user base * 2% * $30
What we learned re: upsell
- in-application selling works
- immediate buy, no big process
- immediate fulfillment
- generous trial period with opt-out
- generous money back policy
Upselling
- Storage for Mail & Files, "Data Hub"
- Family / SME accounts with Domain
- Edge protection
- Mobile device apps, web interface, push
- Sharing / Collaboration = Business Mail
Cross Selling
- Mobile phone & data plan plus synchronisation
- DSL / Cable access plan residential or business with consumer or business package from above
Affiliate Revenues
- Referral fees from e.g. LinkedIn, Google, Yahoo, MSFT Web Portals
- Any cross selling of external services
Upselling makes money out of free
Upselling adjacent services with Open-Xchange
click!
Upsell city
App Store, Many or few?
vs.
- Make or buy?
- Many or few?
- Same or different users?
- Consumer, small or big corp?
Adjacent Products:
Upsell!
"In a digital world, the gift I give you almost always benefits me more than it costs."
Seth Godin
Author, Entrepreneur
BYOD
42M
2 0 1 1
The Industrial age
circa 1800
bring
your own
decoder
open
1800-1900: 100 years in the making
Financial age
Cloudification
Migration age
1915-1975: 60 years in the making
Global cloud computing market will grow from a $40.7 billion in 2011 to $241 billion in 2020, according to Forrester Research.
Forrester predicts that SaaS revenues will reach $92.8 billion by 2016, 26% of the total packaged software market.
IDC expects (SaaS) will grow to $40.5 billion by 2014 at a compound annual growth rate (CAGR) of 25.3%
personal
Mobilization
- Mobile devices shipments: Nokia #1
- Smartphone shipments: Samsung #1
- Smartphone operating systems Android is nearly 50% shipped
- Cellular subscriptions worldwide: 6 billion
push
http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats
Feb. 2012
Mobile, Post-PC
Just getting started
Blurring personal and business happens in the Web
Webification
the boundaries
2 O X 6
professional
2 0 0 7
Delivering Productivity
0,4M
you
Trojan horse services climbing out of phone
World Class Web UI, Made for the Cloud, Proven
2 0 0 8
S cial X
Consumerization
2 0 1 0
2 0 0 9
from the Open Cloud
24M
technology doesn't solve problems, it builds the trust humans require to overcome them.
1945-1980: 35 years in the making
15M
http://www.zdnet.com/blog/btl/cloud-computing-market-241-billion-in-2020/47702
Prosperity age
Rafael Laguna, CEO
you
Mega-corp. age
trojan horse services climbing out of your phone
1980-1995: 15 years in the making
Internet age
1995-2005: 10 years in the making
Hyper-connected age
UX
2005-2011: 6 years in the making
IT should be easy
w e b a g e