Sramana Mitra: Let me comment a little bit on what I’ve heard so far, and then we’ll double-click on a few things. Firstly, this notion of your competitors in the industry not focusing on the sales people and how the customers are facing people—this is the whole notion of social CRM that has come about. Everybody is paying attention to that. Today, people know and believe that you want to dig and ask somebody to introduce you if you want to get into an account as opposed to cold calling somebody.
According to an IDC report, the global market for online content management grew 8.7% to $5.8 billion in 2013. The market was dominated by IBM, which accounted for 16% of the market’s share. OpenText came in second with 9% market share followed by Microsoft’s 7% share. IDC believes that while the industry is dominated by the top 3 vendors who account for more than a third of the total market, other smaller vendors have also been able to deliver very strong growth.
Today, however, I want to share with you a list of technology companies that I am tracking that have the potential of becoming billion dollar public companies, or getting acquired for over a billion dollars. In other words, we’re looking for companies that are likely to have billion dollar exits.
Sramana Mitra: In 2010, you have $4 million more capital. What does the competitive landscape look like at this point? Are you starting to see competitors?
Kyle Vucko: Not really. We did see some smaller competitors who came and went. The competition landscape was pretty bare.
Sramana Mitra: As a result, does that mean that your PPC keywords were still pretty cheap?
We covered John Roberts’ Entrepreneur Journeys story in December of 2008. In this story, we explore the cloud CRM industry’s evolution with Larry Augustin, who replaced John as CEO on May 6, 2009.
Sramana Mitra: As you know, we have covered SugarCRM quite a bit before. So our audience does start off with some knowledge of the company. I’d like to start us out by asking you, now that we are in a mature phase of the cloud computing industry – and CRM on the cloud especially is in a very mature stage – what does your ecosystem look like? Who goes for what solution and why? Who chooses SugarCRM and why?
According to Gartner and Forester, the Enterprise Backup and Recovery market is estimated to be worth $5 billion and growing at 10% annually. The researchers estimate that the bigger space of Data Management, which includes activities like data analysis, archival, de-duplication, and reduction to be worth $15 billion annually. BAAR, Switzerland-based Veeam is making big strides within this market segment.
Excerpt from my book, The Other 99% (Entrepreneurs).
There is a very real knowledge gap in the early stage start-up game, on both sides of the table. First-time entrepreneurs lack the seasoning to captain a steady ship through turbulent waters. Inexperienced friends and family (and, increasingly, crowdsourced investors) lack the ability to gauge the viability of a business, or to mentor naïve entrepreneurs.
This knowledge gap, I have come to believe, is best filled by savvy incubators. However, there are over 7,500 business incubators around the world. Most of them fail.
Sramana Mitra: In this strategy of being the a customer service portal for brands, the business model around that is not exactly an advertising business model; it’s more a SaaS business model, isn’t it?
David Karandish: That’s where half of the revenue comes from, but we leveraged the Advertising.com business model to build out the subscription piece. Three years ago, we had no subscription revenue. Today, it’s approximately half of our overall revenue. We were believers in both. We’re not against the dot-com side. We’re really excited about what we can do on the advertising there, but we’re looking at it saying that if we restrict ourselves to just Answers.com, we’re missing a big market where some of the most commercial questions and answers are available—or should be available—on some of the top websites of the world.