Sramana Mitra: What year are we in now?
Roy Peleg: Around 2012.
Sramana Mitra: What happens in 2012?
Roy Peleg: I decided to leave the startup and start the company I’m currently running. What actually happened is that I decided to completely quit my day job. I did some consulting along the way, but almost 100% of my time was dedicated to the startup. I listened to a lecture by another entrepreneur who found a way to monetize websites by securing the unused page that you see after you download a software. >>>
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According to a MarketsandMarkets report, the global sales performance management market that includes software and services is estimated to grow 18% annually to be worth $5.62 billion by 2020. The market was estimated to be worth $2.48 billion in 2015.
Sramana Mitra: What is the business today? Of all these different strategies, which one is generating the maximum revenue?
Martin Manniche: The biggest is Telco. It’s the fastest growing segment for us. As I said, it has really taken the company to the next step. We’re around 300 employee worldwide. Out of them, 220 are engineers. It’s a very engineering-heavy organization.
Sramana Mitra: What is the revenue range?
Martin Manniche: We are a private company but I will say we are between $60 million to $70 million.
According to research firm Apps Run the World, the top 10 ERP software vendors accounted for nearly 28% of the global ERP applications market. Overall, the global ERP applications market was estimated to be worth $82.1 billion in license, maintenance, and subscription revenues in 2015. In 2015, SAP (NYSE: SAP) was the leader in the market with 6% market share and $5.3 billion in ERP product revenues, riding on a 23% jump in license, maintenance, and subscription revenues. With its latest product innovations, SAP hopes to maintain that lead.
Sramana Mitra: It is very difficult to make a success of those kinds of businesses. As you may have been following what’s happening in the online media industry, most of the companies are failing in that space.
Roy Peleg: You’re correct. I would say that revenue was secondary. There were no independent computer websites back then. The next one was something that I make money from. It was in English, so that market was bigger. We were able make a few thousand dollars a month, but it was hard.
Sramana Mitra: I would summarize your startup attempts as probably having been hard because of the business model that you chose to pursue. These business models of ad-supported media sites is not working. Let’s come to what happens after that. >>>
Martin Manniche: The companies said, “We don’t own the industrial design. So the product that we are getting out from our client partners could be the same that our competitors use. We don’t control the software inside it. We are giving a spec, but the software is owned and built by someone else. That means that every product we have will have different software.” The next point they said was, “It takes too long from starting a product until it hits the market. Everything that we do needs to go to the cloud.” That was very helpful, because that meant that we have a place to use our cloud platform. They wanted everything connected.