Sramana Mitra: How much of that are the clients willing to let you drive?
David DeWolf: We see it all the time. What we do not get into is the business strategy part of it. Companies are looking for us to partner with them, to ask the right questions, to help flesh out the revenue model, and to really engage in developing a robust product strategy. What we find is that those companies that are not software companies at their core but are rapidly becoming software companies simply don’t know how to be a software company. That is why they are absolutely willing to engage with us on that level, talk with us, and leverage us to help develop that product strategy.
SM: So the client designs whatever business strategy they are going to implement, and when it comes to product strategies, they bring you in fairly early on in the design cycle?
DD: That is correct.
SM: Are your clients larger, mid-sized or smaller companies? Where do you see the sweet spot?
DD: It is across the board. However, I would say that we believe there is a strong niche in the mid-market. Companies between $100 million and $2 billion in revenue, for example, struggle to achieve the type of growth they need in order to stay relevant. The large enterprises have the scale and the mass to continuously invest or acquire into new markets and to innovate either through themselves or through acquisition targets. The small startups have the ability to focus and grow up into a single idea. This middle market tends to be a sweet spot for companies that are looking to drive brand-new revenue streams or significantly increase their growth through innovation and new product lines.
SM: Are you at liberty to discuss which clients you have?
DD: Yes. I can give you a few examples across multiple industries. We work with PBS, and we develop technology that is on the device as well as behind the firewall – everything from content management and content delivery networks to the iPad application they won several awards for. Another client would be Carfax. We work with them on some of their new products, helping them bring a lot of products to market, especially mobile products. This is another example of a very information-rich company we worked with.
We are also seeing clients in some very traditional services industries. One of our clients has an innovative product with which they partnered with us to build. They have realized that as a government contractor, they were looking for new ways to grow and determined they had a significant amount of data and expertise in fleet management. They built a software product that virtualized and automated a significant part of the formerly people-intensive process of doing fleet management. We built a software product for them that did that.