Monetizing Open Source Software


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Learn how to monetize the trend in open source software by becoming a CyOp Partner.

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Monetizing Open Source Software

  1. 1. Partnering To Capitalize On The Open Source Opportunity Presented by CyberOptic Group April 20, 2010
  2. 2. Introduction Adding New Revenue Streams Through Partnerships
  3. 3.  Small businesses have essentially the EXACT same functional needs as large enterprises but have significantly less resources with which to provide that function.  As a result, many small businesses are forced to "piece together“ systems from multiple vendors causing needless hours to be spent rekeying data from one system to the next, critical company information to be stored on individual PC's, or even worse, on pieces of paper, where the data is not available to others in the organization and cannot be accessed in real time.  These disparate systems not increase support costs and effect customer and employee satisfaction, but they also inhibit productivity due to the time and resources needed to compile simple but accurate management reports or simply close the books every month. Business Challenge
  4. 4.  Open source software is unique in that it is free to download and use for any purpose, permission is given to freely redistribute copies, and users/developers have unrestricted access to the source code with the freedom to modify and adapt the software for any purpose.  Today, numerous enterprise-class open source applications exist for any business that has the technical abilities to successfully implement, the knowledge to use, the experience to train other users, and the infrastructure and skill set to manage and support the users and application environment.  This creates a tremendous opportunity for business advisors, technology consultants, and computer hardware resellers, to earn significant revenue by providing the professional services needed to fully implement these enterprise applications in small to mid-sized businesses that don’t have the necessary skills internally! Opportunity Overview
  5. 5. Small US-Based Businesses (typically less than CUSTOMERS 250 employees) With Limited IT Staff IBM RESELLER/ Resells IBM SMB Solutions, Lotus Foundations & PARTNER CyOp Services. Offers FREE Process Assessment Provides Professional Services To Qualify & Define CYOP Project (PDW); Implements, Configures, Customizes, & Supports Open Source Application Deployments CYOP SMARTSTART Library of ready-to-use SOLUTIONS open source OPEN SOURCE applications that work BUSINESS instantly on Lotus APPLICATIONS Foundations Secure, Autonomic, Cost-Effective, Easy-to-Manage. LOTUS Provides Calendaring, Emails, Contacts, Productivity FOUNDATIONS Tools, Network Security, Remote Access, File & Print Sharing, Backup & Disaster Recovery for Small Businesses Introduction To CyOp
  6. 6. Market Opportunity Professional Services To Complement Open Source Software
  7. 7. OpenbravoERP SugarCRM Enterprise Resource Planning Customer Relationship Mgmt Kayako Helpdesk OrangeHRM Service/Support Management Human Resource Management AND MORE… Enterprise-Class Open Source
  8. 8. Business Process & Workflow Management (BPM) Business Intelligence & Reporting Electronic Data Interchange (EDI) Enterprise Content Management (ECM) E-Learning & Course Management Open Source Enterprise App’s
  9. 9. ENTERPRISE PROJECT IMPLEMENTATION ROADMAP Project Implementation Roadmap 1 2 3 4 5 Project Iterative Final Go live & Preparation Project Definition Prototyping Preparation Adjustments • Staffing & • Initial Configuration Detailed and Customizations Planning • Detailed Requirements • Integrated Definition • Technical Designs Testing • Go Live • Installation of Test • Functional Design • Development of • Data • Adjustments Envmnt. Interfaces, Data- • Data-Migration strategy Migration • Support • Kick-off • Interfaces Definition and Migration Programs • End-User Meeting and Non-Standard • Troubleshooting Design Functionalities Training • Basic Training • Unit Testing Management methodology Project management • Definition of Initial Steps, Planning, Control, Validation and Project Completion • Project Progress Monitoring, Team Coordination, Change Management, • Risk Management and Scope Modifications (Identification, Monitoring, Evaluation, and Mitigation) What It Takes To Be Successful
  10. 10. As a CyOp Partner, you DON’T need to understand the roadmap! CyOp handles these issues – YOU just need to recognize that there’s a HUGE difference between a customer installing enterprise software versus actually implementing it in the organization.  The roadmap is valid irrespective of the enterprise application being implemented and whether the application is open source, proprietary, on-premises, or delivered through a SaaS model. The customer (or someone he pays) will still need to perform most, if not all, of these steps.  The roadmap represents the set of services CyOp provides around each business application. Not all of the steps need to be done by CyOp, but they all need to be done by SOMEBODY to have a successful implementation.  For a variety of reasons, most businesses, and especially small businesses, are unable to perform these steps without assistance, which is what creates the market opportunity & demand. Notes About The Roadmap
  11. 11.  CyOp bridges the gap between open source and SaaS by leveraging enterprise-class open source software to build for our customers an application that they will OWN. Because the application is owned by the customer with full access to the source code, there is no vendor lock-in. The customer can NOT be forced into having to upgrade hardware or software versions and the application can never be made obsolete since there is a large community of open source programmers that can ensure ongoing development and support.  Once we build the application, There are numerous options as to how the application is supported. For clients with adequate IT staff & facilities, CyOp can implement the application as an on-premises solution. For customers that lack adequate facilities or IT staff, CyOp can implement and support the solution from one of its state-of-the-art data centers, from an IBM Managed Hosting Facility, or from the data center of the customer's choice. CyOp provides enterprise class infrastructure, applications, training, service and support – All at small business prices! Customer Value Proposition
  12. 12. Why Partner With Cyop? Top Five Benefits To Participating in the CyOp Partner Program
  13. 13. MORE SERVICE OFFERINGS, MORE SALES & MORE REVENUE!  Broaden your range of services and your customer set, add significant new revenue streams, and have new ways to approach existing and potential customers. Enable your hardware and/or other professional services to be competitive in deals that were previously cost- prohibitive. Partner Value Proposition #1
  14. 14. SERVICE YOUR CUSTOMERS & MAINTAIN ACCOUNT CONTROL!  Maintain Account Control and ensure customer satisfaction. If you don’t provide the customer what he needs, he will get it from someone – possibly a provider that will attempt to erode your other business. By engaging CyOp, your customer’s needs will be effectively met and you can be assured CyOp will not attempt to displace your existing business. Partner Value Proposition #2
  15. 15. HUGE MARKET WITH LITTLE COMPETITION!  There is little to NO competition for many of these applications in smaller businesses since most “competitors” can’t scale down to businesses with less than 100 employees - which is 98% of the market! It’s easy to get to the decision maker, rarely if ever is there a required bid process or board approval needed. Partner Value Proposition #3
  16. 16. SIGNIFICANT REVENUES WITH YOU IN CONTROL YOUR PROFITS!  Even at a fraction of the implementation costs of proprietary systems, there is still large value and profit in CyOp’s services which we share with our Partners. As a CyOp Partner, when you refer an opportunity, you have full control over customer pricing and your profit. We will never quote your client directly without your prior knowledge and approval. Partner Value Proposition #4
  17. 17. RECURRING REVENUE POTENTIAL!  Because CyOp specializes in driving revenue back to the customer’s bottom line, once we complete a project, it is very common for the customer to engage us for ongoing development and support, which provides recurring revenue for the Partner. Partner Value Proposition #5
  18. 18. The CyOp Process How CyOp Engages With Customers & Partners
  19. 19. You DON’T need to be a software expert to earn money by identifying opportunities to refer to CyOp! Here’s are TEN easy signs to look for in a prospect: 1. Running multiple systems and databases that don’t talk to each other or performing tasks off of the enterprise system (i.e. QuickBooks & Excel, etc.) 2. On a legacy proprietary system with discontinued development/support and/or anxious to get out of continuous upgrade cycle to keep current support 3. Lots of time spent re-keying data 4. Excessive time needed to compile simple but accurate management reports or close books at end of month 5. High volume of email or paper forms containing data that should be in some enterprise system 6. Lack of management reporting on statuses of workflows 7. Desire to extend function & life of existing systems to better integrate with other systems and business processes 8. Need to better manage & communicate with customers, vendors & partners 9. Need to facilitate the management & reporting of employees & contractors 10. Business growth being inhibited by existing system or process limitations How To Identify Opportunities
  20. 20. • Partner registers opportunity by phone, email, or lead form. • CyOp contacts Partner to discuss strategy (if needed) Referral • CyOp engages with prospect to qualify opportunity and present value proposition. • CyOp performs a FREE Business Process Assessment to gain an understanding of customer environment, objectives & requirements and determine the best set of tools to Qualification propose to the customer. • CyOp conducts “Project Definition Workshop (PDW)” which essentially covers the first two phases of the project roadmap and is needed to determine exact costs of the project. The PDW is a billable engagement and the deliverables include a Functional Design, Gap PDW Analysis, Data Migration Plan, and Systems Interface Design. • Based on results of PDW, CyOp will prepare a detailed proposal with DISCOUNTED PARTNER PRICING. Partner determines ultimate price to Customer and CyOp & Partner decide on best way to present proposal to Customer. Project • Revenue received over and above Partner pricing are remitted to Partner as Commissions CyOp Engagement Process
  21. 21. Customer Successes Here’s What CyOp Does For It’s Customers
  22. 22. SKIN-CARE PRODUCTS MANUFACTURER COMPANY PROFILE: 5-Person Skin Care Products Manufacturer (StartUp) ISSUES: Unable to continue to run business on QuickBooks & Excel and manage products in multiple warehouses, some of which was perishable with expiration dates. Needed to be able to manage multiple distributors with multiple price levels. SOLUTION: Open Source ERP Implementation COST: $25,000 RESULTS: Company for the first time could view actual and accurate costing and inventory values and was able to locate over $20,000 in valued un-received inventory and identify several products where cost of manufacturing exceeded distributor sales price, prompting a planned price increase. System enabled multiple price lists with multiple price list versions, provide real-time inventory valuations on a per-warehouse basis, and enable them to better manage perishable inventory. Success Story - ERP
  23. 23. FOOD PRODUCTS MANUFACTURER COMPANY PROFILE: 400-Person Food Products Manufacturer ISSUES: The company had NO CRM system and all sales reps were working on disparate PC-based systems with most on Outlook, others using personal copies of Act or Goldmine. No information was being retained in company system, no sales forecasting was possible, and information retrieval was nearly impossible. Wanted a system that could be expanded company-wide but had limited available budget. SOLUTION: Open Source CRM Implementation COST: $8,995 RESULTS: Sales Reps migrated to enterprise system where they had access to pre-defined email templates, standard & current company documents, and the tools to better perform their job. What used to be “Sales Rep Data” is now company data and Executives have insight into sales activity and forecasts. The system can be easily expanded company-wide with no licensing costs. Success Story - CRM
  24. 24. CONCRETE PRODUCTS MANUFACTURER COMPANY PROFILE: 80-Person Concrete Products Manufacturer ISSUES: Was a division of a larger company that was being divested and had 90-days to move off of parent company’s AS/400 based JD Edwards system. Previous system had been highly customized with large amounts of historical data requiring migration. SOLUTION: Open Source ERP & EDI Implementation COST: $80,000 Initial Project - $150,000+ To Date RESULTS: Was able to migrate customer to new system in “record” time while streamlining processes to eliminate need for approximately $60,000 in data collection devices, reducing shipment times, reducing order times, and providing customers with better levels of service. Customer is so happy with results, they continue to use CyOp for ongoing developments & improvements to the system and, to date, have spent over $150,000 with CyOp. Success Story – ERP & EDI
  25. 25. JOIN THE CYOP PARTNER PROGRAM & START EARNING MONEY TODAY! To enroll as a CyOp Partner and begin earning substantial revenues By referring CyOp’s open source consulting & development services, please call us today at: (800) 376-9704 Or, complete our Partner Application at: Getting Started With CyOp
  26. 26. WE LOOK FORWARD TO WORKING WITH YOU!!! For More Information regarding CyberOptic Group or the points made in this presentation, please contact your CyOp Representative Or visit CyOp on the web at: (800) 376-9704 You may download a copy of this presentation at: Closing & References