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The Strategy of
Platforms
Carl Katz
VP of Channel Sales, Nextiva
What is a platform?
• Connect individuals and organizations
• For a common purpose or to share a
common resource
• So they can innovate or interact in ways not
otherwise possible with the potential for
nonlinear increases in utility and value
• “Network effect” - each additional user can
benefit from access to all the other users and
innovations already available through the
platform
Platforms:
Transaction
Platforms
Hybrid
Platforms
Innovation
Platforms
Transaction Platforms:
Large intermediaries or online
marketplaces
• Enable users to share information
or to buy/sell/exchange
• The technology and scale is what
makes these platforms powerful
• Value derivedfrom collecting
transaction fees or advertising
Innovation Platforms:
“Technological buildingblocks” that are shared to facilitatethe
development of new complementary productsand services (usually by a
3rd party)
• Enable users to build upon it, make it even better,and add
ancillary services
• ARPU: 4-5 times higher because they enable users to do more
• 3-4x greater valuethan transactionalbecause innovation platforms
givecustomers the ability to do more
• Valuederived from selling/renting the platform or through
advertising or selling ancillary services
• Nextiva is an innovation platform: On top of the UCaaS platform,
we havebuilt/added SaaS tools to increase productivityand gain
competitiveedge in market, and opened up APIsto enhanceuser
experience (IVR and other integrations),and on one platform.
Hybrid Platforms: The Mix of Both
• Facilitate transactions while also allowing
development of additional technology to be
built onto/into their platforms
• Many times, firms start with one type of
platform (transactional or innovation) and
build and integrate the second (ex: add a
marketplace), or simply support both types of
platforms.
• Seen as more profitable and more valuable in the world economy than
transaction platforms
o Companies are often 4 to 5 times larger in terms of median sales and
employees
o Median Market Value: 3 times higher than tran
• More value to the customer per unit, so the platforms can charge more per
license
o Avg Revenue Per Unit (ARPU): 4-5 times higher because the platforms
enable users to do more
• Complementary technology, usually developed by a 3rd party, stimulate
demand for the platform by making new products and services that add
significant value
• The more complementary technology that is developed and added to a
platform, the stickier the customers will become
o Sticky customers = longer annuities.
Benefits of an Innovation Platform
Benefits of an Innovation Platform
Stickier Customers → Larger & Longer Annuities
PLATFORMS ARE THE
FUTURE OF UCaaS
• Scalability: The future value of a UCaaS company is dependent
on their product portfolio and scalability of their product set
• Customers want to minimize disparate tools and applications
behind a single pane of glass
• UCaaS Innovation Platforms are the future, as customers look for
added functionality beyond the typical telephony/collaboration
Platforms are the future of UCaaS
Platforms are the future of UCaaS
• Example: Nextiva & Nextiva NextOSSuites
o With NextOS Suites, Nextiva has developed added SaaS technology on top of our UCaaS
platform
o CRM, proactiveweb chat, surveys,customer sentiment technology goes beyond telephony
o NextOS Relationships suites will eventually integratewith other UCaaS solutions
• Nextiva is an innovation platform that enables customers to gain a competitiveedge in their market
utilizing SaaS tools
• API Access to enhance product experience with integrationsthat can assimilate into our product
scope (ex: Inferencefor Advanced IVR)
• As customers adopt more of the complementary NextOS SaaS technology (example: chat or CRM),
they become stickier with the Nextiva platform and will maintain a longer lifecycle with the
technology leading to partnersgetting longer annuities.
THANK YOU!

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The Strategy of Platforms

  • 1. The Strategy of Platforms Carl Katz VP of Channel Sales, Nextiva
  • 2. What is a platform?
  • 3.
  • 4. • Connect individuals and organizations • For a common purpose or to share a common resource • So they can innovate or interact in ways not otherwise possible with the potential for nonlinear increases in utility and value • “Network effect” - each additional user can benefit from access to all the other users and innovations already available through the platform Platforms:
  • 6. Transaction Platforms: Large intermediaries or online marketplaces • Enable users to share information or to buy/sell/exchange • The technology and scale is what makes these platforms powerful • Value derivedfrom collecting transaction fees or advertising
  • 7. Innovation Platforms: “Technological buildingblocks” that are shared to facilitatethe development of new complementary productsand services (usually by a 3rd party) • Enable users to build upon it, make it even better,and add ancillary services • ARPU: 4-5 times higher because they enable users to do more • 3-4x greater valuethan transactionalbecause innovation platforms givecustomers the ability to do more • Valuederived from selling/renting the platform or through advertising or selling ancillary services • Nextiva is an innovation platform: On top of the UCaaS platform, we havebuilt/added SaaS tools to increase productivityand gain competitiveedge in market, and opened up APIsto enhanceuser experience (IVR and other integrations),and on one platform.
  • 8. Hybrid Platforms: The Mix of Both • Facilitate transactions while also allowing development of additional technology to be built onto/into their platforms • Many times, firms start with one type of platform (transactional or innovation) and build and integrate the second (ex: add a marketplace), or simply support both types of platforms.
  • 9. • Seen as more profitable and more valuable in the world economy than transaction platforms o Companies are often 4 to 5 times larger in terms of median sales and employees o Median Market Value: 3 times higher than tran • More value to the customer per unit, so the platforms can charge more per license o Avg Revenue Per Unit (ARPU): 4-5 times higher because the platforms enable users to do more • Complementary technology, usually developed by a 3rd party, stimulate demand for the platform by making new products and services that add significant value • The more complementary technology that is developed and added to a platform, the stickier the customers will become o Sticky customers = longer annuities. Benefits of an Innovation Platform
  • 10. Benefits of an Innovation Platform Stickier Customers → Larger & Longer Annuities
  • 12. • Scalability: The future value of a UCaaS company is dependent on their product portfolio and scalability of their product set • Customers want to minimize disparate tools and applications behind a single pane of glass • UCaaS Innovation Platforms are the future, as customers look for added functionality beyond the typical telephony/collaboration Platforms are the future of UCaaS
  • 13. Platforms are the future of UCaaS • Example: Nextiva & Nextiva NextOSSuites o With NextOS Suites, Nextiva has developed added SaaS technology on top of our UCaaS platform o CRM, proactiveweb chat, surveys,customer sentiment technology goes beyond telephony o NextOS Relationships suites will eventually integratewith other UCaaS solutions • Nextiva is an innovation platform that enables customers to gain a competitiveedge in their market utilizing SaaS tools • API Access to enhance product experience with integrationsthat can assimilate into our product scope (ex: Inferencefor Advanced IVR) • As customers adopt more of the complementary NextOS SaaS technology (example: chat or CRM), they become stickier with the Nextiva platform and will maintain a longer lifecycle with the technology leading to partnersgetting longer annuities.