2. CONTENT
... what we intend to share
Idea & customer benefit - what we do
● in what we believe: Idea & trends
● mission, problem and solution
Team - who we are
● heads behind the project
Product & demo
● how the product works
● 7iPlatform, 7iMarketplace, 7iServer-Apps
Competition
● competitive radar, rethink cloud services
Market analysis
● market potential
● going to market strategy
Business plan - financials
● key figures , financial plan
Summary
● key takeaways
● thoughts and options
3. IDEA - it is time for
... 'mobile like' Server Apps
MOBILE-APPS (iPhone, Android, ...)
SERVER-APPS (7iPlatform)
2008 2010 2012 2014 2016 2018
Server-Apps are SaaS business solutions, that can be
downloaded and installed from a marketplace, that are
easy to handle and have a common look and feel
It is time for Server-Apps
the 7iPlatform implements this concept.
PC-APPS (Windows, Google-Marketplace, ...)
4. IDEA - it is time for
... professional Open Source
Build
Open Source
community
Manage
7i-Platform with
Server Apps on
7i-Marketplace
Use
SME, teams
other users
Run
As SaaS in
der cloud
Benefit of OSS Contribution
Hoster benefit
- high SW quality
- proven solutions
- big, active developer
community
- robust, innovative
- no license fees
- no vendor lock-in
- optimized operations
- scalable systems
- flexible cost and
no investments
- local data storage
- data privacy due to
dedicated virtual servers
- managed operations
- platform integration
of pre-selected Apps
- lifecycle management
of all 7iServer Apps
- secure, standardized
config and operations
- SPOC for support
- more time to focus
on core business
- higher productivity
- simple to use Apps
- enhanced security
for enterprise data
- reduced IT cost
Customer benefits
5. Mission 7iSolutions
7iSolutions is the leading provider of cloud based secure business solutions using Open Source Software (OSS).
7iSolutions pre-selects and pre-assesses Open Source Applications, integrates them into the 7iPlatform and publishes
all 7iServer-Apps on the 7iMarketplace. The customers can choose from a feature rich and completely pretested set
of business application without having to deal with the complexity of the Open Source Software market.
CUSTOMER BENEFIT
... Mission, Problem, Solution
The Solution - Open Source Software (OSS) with the 7iPlatform
The 7iPlatform hides the complexity and heterogeneity of the Open Source Software by wrapping the software into
Server-Apps that can be installed in 1-click approach after a download from the 7i-Marketplace.
This simplified and centralized approach enhances the security and availability of all enterprise data and enterprise
application assets and helps to improved trust and efficiency and to lower costs for enterprise IT operations.
All IT-Operations-Use-Cases can be done in a Self-Servicing-Approach (User-, Access Privileges-, Project- and Site-
Configuration, Application Monitoring, Installation and Disaster Recovery) or are performed periodically by the platform
(Backup & Update).
The Problem - Open Source Software (OSS) is very promising, but cumbersome to operate ...
Advantages of OSS: Due to the free licenses free OSS implies significantly lower cost compared to commercial
software. In addition OSS is robust, innovative, bases on open technology standards and allows for interoperability
between applications. Most importantly OSS is widely spread and supports millions of installations worldwide.
Disadvantages of OSS: Installation, operations and usage of Open Source Software bring quite some complexity into
the organization. A lack of knowledge and therefore some lack of trust are the most important inhibitors to adopt Open
Source Software. Often additional staff or support contracts are needed to support Open Source Applications.
6. TEAM
... the heads behind 7iSolutions
Michael Hofmann - Founder, CEO & CTO
Michael (see http://www.mphofmann.com) is the founder of 7iSolutions. He has over 20 years of experience in
Information Technology. He began his career in a global financial institution, where he was responsible for numerous IT
projects implemented using Internet technologies. He spent 4 years abroad in New York and Boston and he was
educated in business administration and information technology at the Massachusetts Institute of Technology
(Cambridge, USA), the ETH Zurich and the University of St.Gallen (Switzerland).
Venture Lab Team working in ‘Technology Entrepreneurship Part 1&2’ on the ‘7iSolutions case’
Full profile of all team member see: https://novoed.com/venture2/teams/45449
Andrea Klingebiel - Project and Product Management
Andrea is a project and product manager at 7iSolutions. She has over 10 years of experience in various positions within
the IT industry. She was responsible for numerous customer-oriented projects and has a broad background in project
management, web-design and web-development. She holds a degree in information and communication technology
from the Technical Academy of Cottbus (Germany).
Thomas Kern (Team Lead), Zurich, Switzerland
Felix Honold, Zurich, Switzerland
Leonhard Sterzinger, Zurich, Switzerland
Vyacheslav Voronchuk, Odessa, Ukraine
Armin Zundel, Karlsruhe, Germany
Shoko Sekiguchi - Marketing professional, New York, USA
Alejandro Casteleiro, Badajoz, Spain
Vinay Mamidi, Santa Clara, California, USA
Rafael Mendez Parra,Barcelona, Catalonia, Spain
Eike Post, Beijing, Beijing, China
7. PRODUCT
... 7iPlatform & 7iMarketplace
Customer
Open Source
Applications
7iMarketplace
Hosting
Partner
7iPlatform
1
2
3
Additional remarks:
1. 7iSolutions pre-selects and pre-assesses Business Applikationen from the Open Source Software (OSS) Community
The selected applications are encapsulated as Server-Apps and deployed on the 7iMarketplace.
2. The 7iPlatform is typically hosted on a Virtual Private Server. Once installed all Server-Apps from the 7iMarketplace are
available and can be downloaded by the customers.
3. The SME customers rent (payment per month/user) the Server-Apps and the 7iPlatform as SaaS applications.
Hint: Click icon to
access prototype.
8. PRODUCT
... product demonstration
Click here to see a youtube video explaining
the value statement for Engineering SME’s.
Click here to see a product demo video
(not yet available).
Click here to try out the product with a self
provisioned test server.
9. Dedicated Cloud Server
7iPlatform
Core modules, Security Services, Interface and Compatibility Services
PRODUCT
... 7iPlatform architecture
Linux (Debian 7)
7iServer-App
7iServer-App
7iServer-App
7iServer-App
7iServer-App
7i Control Panel (Administration and Configuration GUI)
Application GUI
7iMarketplace
Update services, App download
7i Administration Services
Installation, Configuration, Backup
7i Shared Data Services
Users, Access Privileges, Sites
10. COMPETITION
... competitors on the radar
High MediumMediumLow Low
Threat Level
PaaS & SaaS
Cloud Services
Cloud
Business Apps
Cloud
Operations Panels
11. COMPETITION
... rethink cloud services
Cloud service issues The 7iPlatform cloud
one cloud service serves one single purpose aggregation of services on one integrated platform
several services imply reduced control all services on one platform
several services imply data redundancy shared database for users, privileges, sites, ...
data assets stored all over the world enterprise assets stored in a single, known place
need for cloud service brokerage integrated platform
unclear data security centralized data in private environment
many different logins and accounts centralized identity and access management
many different contract partners one contract partner
unknown quality of cloud services preselection and pre-assessment of Server-Apps
overlapping functionalities between services aligned set of Server Apps with minimal overlaps
unknown and unaligned cost models single license model allows for economies of scale
12. MARKET BENEFIT
... elevator pitch - sample
Introduction remark: 7iSolutions provides a horizontal solution that is suitable for many
industries. End customer value statements depend on customer problem and industry type.
Elevator pitch for Consulting / Engineering companies
looking for document management solutions ...
In an accelerated and highly interconnected world all consulting and engineering companies
have the need to transparently share any types of data with their stakeholders such as
customers, partners, staff members, suppliers or even governmental institutions.
The 7iPlatform and the 7iMarketplace are cloud services basing on best-in-class and
integrated Open Source Server Applications. The customer can easily version, access and
share their assets based on fine granular access rights to collaborate with all involved parties
over a secure extranet platform.
Unlike many single products applications of our competitors the 7iPlatform hosts all your
Server-Apps supporting single sign-on-access to all enterprise resources in a single,
private and highly secured environment.
See video explaining the value statement here: https://www.youtube.com/watch?v=ITo3H35EGZ0
13. MARKET SWITZERLAND
... potential & channels
Customer segment Market potential
CH all industries
Market potential
core industries
primary sales channel
companies with 0 - 9
employees
272'346
companies
33'731
companies
Online Communities / Web
Channel partner, distributors
companies with 10 - 49
employees
33'183
companies
2'180
companies
Direct sales force
Channel partner, distributors
companies with 50 - 99
employees
ca. 4'000
companies
ca. 150
companies
Direct sales force
Channel partner, distributors
companies with 100 - 249
employees
ca. 2'178
companies
ca. 107
companies
Direct sales force
Additional remarks:
● Switzerland is the first market 7iSolutions will focus on. In a second stage targeting Germany and Austria.
● Facts and figures from Bundesamt für Statistik (BFS 2008), Market Segmentation using NOGA industry codes
● Potential Switzerland (CH) contains all industries
● Potential core industries: Consulting, Architecture and Engineering, R&D institutions and other scientific /
technical activities - NOGA codes (departments) 70,71,72,74
14. MARKET DACH
... potential core industries
Customer segment
within core industry
Germany
# customers
Austria
# customers
Switzerland
# customers
Total
# customers
€ / year &
contract
Total
Mio. €
companies with
0 - 9 employees
185'521 23'611 33'731 242'863 12 * 80 € 204 Mio €
companies with
10 - 49 employees
11'990 1'526 2'180 15'696 12 * 180 € 34 Mio €
companies with
50 - 99 employees
825 105 150 1'080 12 * 420 € 5 Mio €
companies with
100 - 249 employees
588 75 107 770 12 * 800 € 7 Mio €
Total market size DACH
(GER, AUT, SUI)
198'924 25'317 36'168 260'409
250
Mio €*
Additional remarks:
● Core industries: Consulting, Architecture and Engineering, R&D institutions & other scientific / technical activities
● Going to market strategy - regions: (1) Switzerland (2) Germany / Austria (3) global
● Going to market strategy - channels: first 100 customers direct sales after focus on channel partners sales
● Estimations for Germany & Austria calculated in relation GDP of Switzerland followed by rough validation:
GDP Germany ~ 5.5 x GDP Switzerland and GDP Austria ~ 0.7 x GDP Switzerland
* 1 € ~ 1.33 $
15. MARKET WORLDWIDE
... potential and scalability
Background thoughts:
● Consistent multi language capability: The 7iPlatform, the 7iMarketplace and the
integrated 7iServer-Apps support all major languages.
● Worldwide usage of Open Source Software: Some Open Source Business
Applications are installed on more than 100 Mio. server systems worldwide.
● Permanent innovation is ongoing: just now more than 100'000 OSS projects are
actively developing on behalf of our current and future needs.
The 7iSolutions Business Model is highly scalable - three strategies:
● Scale by internationalization / rollout of
7iPlatform and 7iMarketplace.
● Extend scope of offering with
- additional Open Source Business App
- integration of commercial Bussiness Apps
- integration/brokerage of cloud services.
● Grow over additional target industries
by focusing on SME's other industries
beside engineering and consulting.
Internationalization
Scope
of offering
Target
industries
16. Market
... anticipated roadmapProductFocus
Market Focus
Local SME
Market (DACH)
Internationalization
SME, Teams, others
Platform and
first set of Apps
Scope of App
Marketplace
Q3
2013
Q4
2013
prototype
platform & marketplace
feature rich SME
collaboration server
CMS, CRM, ERP
solutions available on marketplace
Q4
2014
Q4
2015
Q4
2016
internationalization
multi language, rollout
global
market penetration
17. BUSINESS PLAN
... key figures
Topic Y1/01-06 Y1/07-12 Y2/01-06 Y2/07-12 Y3/01-06 Y3/07-12
Market area focus CH CH CH DACH DACH DACH
#7iApps @ end of period 8 11 14 17 21 24
#FTE @ end of the period 4 5 7 9 11 13
FTE growth in period [%] 25% 40% 29% 22% 18%
#channel partners @ end of period 3 6 9 12 15 18
channel growth in period [%] 100% 50% 33% 25% 20%
#customers @ end of period 40 110 216 358 536 751
customer growth in period [%] 175% 96% 66% 50% 40%
#direct sale customer @ end of per. 11 17 24 31 37 44
growth direct customer in period [%] 55% 41% 29% 19% 19%
#channel customers @ end of period 29 93 193 328 500 707
growth channel customers in per. [%] 221% 108% 70% 52% 41%
19. SUMMARY
... key takeaways
Trends, market and product
● Cloud services are starting to play a key role for Small and Medium Enterprises (SME).
● Open Source Software products are available and proven but somewhat complex.
● Success factors for penetrating the SME market are security, trust and simplicity.
High level company strategy
● Build on a global business model and implement it in three steps
Step 1: Prove that business model is working in CH and DACH regions
Step 2: Repeat business model on a global scale with a global player
Step 3: Exit - sell company to a global player
Financials and assumptions
● The current business plan follows conservative assumptions
Assumption 1: 750 customers with 15 seats in average - less than 1% market share
Assumption 2: Cost per seat & month 25.- CHF* - revenue of 2.5 Mio. CHF* in 3rd year
● Summary of financial statements
Break even is anticipated for the eighth quarter.
External funding of roughly 800'000.- CHF* is needed.
7iPlatform, 7iMarketplace, 7iServer-Apps are ready to take of.
* 1 CHF ~ 1.08 $ ~ 0.81 €
20. SUMMARY
... thoughts and options
Current assumptions in the business planning are conservative
● More sales driven rather than a marketing driven
● Upselling of Server-Apps to existing customers rather than forced market expansion
● Focus on a small industry segment
● Small geographical scope - global business model applied to CH/DACH markets only
● Simple value chain - third party hosting only
Additional options currently not included in the business planning
● Extend scope beyond ‘Open Source Software’:
- Expansion into integrating other commercial applications
- Expansion into cloud brokerage by integrating cloud services
● Extend value chain - e.g. by including hosting services
● Extend market scope: Forcing on an accelerated market expansions into
- additional geographical regions
- additional industries with additional Server-Apps
● Focus on marketing to accelerate growth by trying to viralize the sales of the platform
● Early cooperation with global partners to accelerate growth - potential partners:
- ISPs / Hosters / Cloud Service Providers
- SaaS providers
To improve our ability to execute we are looking for the 'right partner'.
