7iPlatform

OEP Presentation

venture-lab.org / Technology Entrepreneurship Part 2Team: Explorers

©

CONTENT... what we intend to shareIdea & 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

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-Appsthe 7iPlatform implements this concept.

PC-APPS (Windows, Google-Marketplace, ...)

IDEA - it is time for... professional Open Source

BuildOpen Source community

Manage7i-Platform withServer Apps on7i-Marketplace

UseSME, teams other users

RunAs 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

Mission 7iSolutions7iSolutions 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 7iPlatformThe 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.

TEAM... the heads behind 7iSolutionsMichael Hofmann - Founder, CEO & CTOMichael (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 ManagementAndrea 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, SwitzerlandFelix Honold, Zurich, SwitzerlandLeonhard Sterzinger, Zurich, SwitzerlandVyacheslav Voronchuk, Odessa, UkraineArmin Zundel, Karlsruhe, Germany

Shoko Sekiguchi - Marketing professional, New York, USAAlejandro Casteleiro, Badajoz, SpainVinay Mamidi, Santa Clara, California, USARafael Mendez Parra,Barcelona, Catalonia, SpainEike Post, Beijing, Beijing, China

PRODUCT... 7iPlatform & 7iMarketplace

Customer

Open SourceApplications

7iMarketplace

Hosting Partner

7iPlatform

1

2

3

Additional remarks:

1. 7iSolutions pre-selects and pre-assesses Business Applikationen from the Open Source Software (OSS) CommunityThe 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.

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.

Dedicated Cloud Server

7iPlatform Core modules, Security Services, Interface and Compatibility Services

PRODUCT... 7iPlatform architecture

Linux (Debian 7)

7iS

erve

r-A

pp

7iS

erve

r-A

pp

7iS

erve

r-A

pp

7iS

erve

r-A

pp

7iS

erve

r-A

pp

7i Control Panel (Administration and Configuration GUI)

Application GUI

7iMarketplaceUpdate services, App download

7i Administration ServicesInstallation, Configuration, Backup

7i Shared Data ServicesUsers, Access Privileges, Sites

COMPETITION... competitors on the radar

High MediumMediumLow Low

Threat Level

PaaS & SaaSCloud Services

CloudBusiness Apps

Cloud Operations Panels

COMPETITION... rethink cloud servicesCloud 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

MARKET BENEFIT... elevator pitch - sampleIntroduction 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

MARKET SWITZERLAND... potential & channelsCustomer segment Market potential

CH all industriesMarket potential core industries

primary sales channel

companies with 0 - 9 employees

272'346 companies

33'731 companies

Online Communities / WebChannel partner, distributors

companies with 10 - 49 employees

33'183 companies

2'180companies

Direct sales forceChannel partner, distributors

companies with 50 - 99 employees

ca. 4'000 companies

ca. 150 companies

Direct sales forceChannel 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

MARKET DACH... potential core industriesCustomer segment within core industry Germany

# customersAustria

# customersSwitzerland# customers

Total# customers

€ / year & contract

TotalMio. €

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 $

MARKET WORLDWIDE... potential and scalabilityBackground 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

Scopeof offering

Targetindustries

Market... anticipated roadmap

Pro

duct

Foc

us

Market FocusLocal SME

Market (DACH)Internationalization

SME, Teams, others

Platform andfirst set of Apps

Scope of AppMarketplace

Q32013

Q42013

prototypeplatform & marketplace

feature rich SMEcollaboration server

CMS, CRM, ERPsolutions available on marketplace

Q42014

Q42015

Q42016

internationalizationmulti language, rollout

globalmarket penetration

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%

BUSINESS PLAN... financial plan

Topic Y1/01-06 Y1/07-12 Y2/01-06 Y2/07-12 Y3/01-06 Y3/07-12

Revenue [CHF]* 26'680 109'368 274'390 545'321 945'737 1'499'215

License related [%] 43% 51% 58% 63% 67% 70%

Product related [%] 62% 68% 72% 75% 78% 80%

Service related [%] 38% 32% 28% 25% 22% 20%

Expenses [CHF]* -284'744 -353'108 -437'240 -535'140 -647'307 -773'732

Staff expenses [%] 79% 83% 86% 88% 89% 90%

General expenses [%] 21% 17% 14% 12% 11% 10%

EBITDA [CHF]* -258'065 -243'740 -162'850 10'181 298'430 725'473

Depreciation -16'400 -25'440 -27'664 -36'998 -37'399 -37'639

EBIT [CHF]* -274'465 -269'180 -190'514 -26'817 261'031 687'833

* 1 CHF ~ 1.08 $ ~ 0.81 €

SUMMARY... key takeawaysTrends, 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 regionsStep 2: Repeat business model on a global scale with a global playerStep 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 shareAssumption 2: Cost per seat & month 25.- CHF* - revenue of 2.5 Mio. CHF* in 3rd year

● Summary of financial statementsBreak 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 €

SUMMARY... thoughts and optionsCurrent 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'.