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?

A: Evaluating strategic acquisitions is a permanent part of senior management team’s responsibility. Specific factors evaluated when considering an acquisition include technology portfolio, markets served, revenue model(s), number of clients, terms of use, integration points with other cloud based systems, strength of leadership team, alliance partners, and total revenue.

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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