Safe Hatch LLC Saa S Software as a

Safe. Hatch LLC Saa. S Software as a Service Saa. S as the Ultimate… Disaster Avoidance Model Security & Compliance Tool Darling of the Private Equity Marketplace Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 1

Safe. Hatch LLC Saa. S - Agenda • • • Quick – Saa. S What? Disaster Avoidance Security & Compliance Equity Opportunities Saa. S Example Wrap Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 2

Safe. Hatch LLC Saa. S - Software as a Service Saa. S What? Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 3

Safe. Hatch LLC Saa. S 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 • “Saa. S is the Answer… What Was the Question? ” Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 4

Safe. Hatch 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. 5 B in 2003 to $41 B by 2008, a 41% CAGR” • “One Third of all New Software will be Delivered On-Demand by 2010” Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 5

Safe. Hatch LLC What types of apps are firms buying “as a service”? SFA & Marketing Automation 39. 80% Communication & Collaboration 39. 50% Procurement/sourcing HR Finance 35. 70% 33. 20% 29% Base: North American Firms (SMBs and Enterprises) Source: Business Technographics® November 2004 North American Benchmark Study Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 6

Safe. Hatch LLC Saa. S - Software as a Service Saa. S for Disaster Avoidance Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 7

Safe. Hatch 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-Super. Com, New Orleans 1997 Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 8

Safe. Hatch LLC Saa. S 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 Saa. S model) Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 9

Safe. Hatch LLC Saa. S 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) Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 10

Safe. Hatch LLC Saa. S - Software as a Service Saa. S for Security & Compliance Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 11

Safe. Hatch LLC Saa. S for Security & Compliance • Assumptions that you should Validate - Your Saa. S 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! Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 12

Safe. Hatch LLC Saa. S for Security & Compliance • Can You afford to build out, Maintain, and Certify a… – SAS 70 Certified Solution – FIPS 140 -2 Certified Solution – HIPPA Compliant Solution – Totally Secure Access Capability for Every One of Your Users? Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 13

Safe. Hatch LLC Saa. S - Software as a Service Saa. S and the Private Equity Marketplace Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 14

Safe. Hatch LLC Saa. S and the Private Equity Market • Saa. S 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 Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 15

Safe. Hatch LLC Saa. S and the Private Equity Market • Saa. S 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! Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 16

Safe. Hatch LLC Saa. S = Hockey Stick Revenue Curve Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 17

Safe. Hatch LLC Saa. S and the Private Equity Market • So you Want to play in the On-Demand space but need help with… – Funding – Technical creation or transition – Saa. S Market Understanding – Partner identification – Client Attraction and Retention Models – Pricing Performance Sizing etc. Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 18

Safe. Hatch LLC Saa. S - Software as a Service Saa. S Startup Example Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 19

Safe. Hatch LLC Saa. S – 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 Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 20

Safe. Hatch LLC Saa. S – 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 Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 21

Safe. Hatch LLC Saa. S – 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 Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 22

Safe. Hatch LLC Saa. S – 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 Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 23

Safe. Hatch LLC Saa. S - Software as a Service Some Basic Resources Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 24

Safe. Hatch LLC Saa. S Support Links • From Software. CEO. com: – Comp. TIA “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: Saa. S: 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 Saa. S Success – What it Takes to Get it Right December 2005 Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 25

Safe. Hatch LLC Saa. S – Final Q&A ? Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 26

Safe. Hatch LLC Like They Used to Say in Ancient Egypt That Wraps Up Another One Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 27

Safe. Hatch LLC For the Private Equity Investor: Technical Due Diligence Investment Support Services For Young and Start-up Ventures: Business Acceleration Services Validation, Strategic Positioning, and Funding Support Confidential & Proprietary All Rights Reserved © Safe. Hatch LLC 28