GlobalWise Investments Offers Answers Directly From Management
Q: I have noticed the acquisition of some private cloud companies with nearly 2,000 clients. Do you have industry statistics as to what an Average $ Per client or $/USER RATES currently are and what they expect to be in the next few years?
A: While cloud-based ECM revenue models vary and an “average $ / User” rate would be difficult to determine in the market, there are commons factors that impact pricing: the amount of digital storage managed, integration points with other systems, the number of users, the number of content areas managed by the system, advanced capture / data extraction services, and service period.
Q: As competition heats up, you typically see $/user valuations begin to rise as supply becomes limited.
A: Although we do not currently have 2,000 clients, material growth in the number of registered users will occur through the expanding channel network. For example, one partner alone has a captive client base of over 6,000 discreet public / private cloud businesses using their mission-critical business application. These businesses will be offered an optional ECM module based upon GlobalWise’s cloud technology beginning Q3 of 2012. Significant partner generated industry media coverage has already begun; interest from client base is high.
Q: Do you have any initial estimate as to what Client # and AVG $/User we may be looking at for end of 2012?
A: The company anticipates a 100% increase in overall client base year-over-year for 2012 with a range of revenue / client depending upon the model specifics, OEM, capacity based, user based, term of contract, etc.
Q: Has the company considered acquiring technologies with stock to broaden our scope?
Q: Are you expecting Guidance PRs or do they plan to let financials speak for themselves going forward.
A: Guidance PRs will be introduced in the future to supplement financials.
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