jSpan Corporation is an Application Service Provider. (ASP) It provides Internet-based remote access services for independent professionals and small to mid-sized businesses. The Webtop interface for jSpan allows you to combine legacy systems, online apps, and value-added service into one environment. jSpan’s Webtop interface allows it to act as a distribution hub for other providers of application services. jSpan exploits the growing demand for remote access as well as the industry trend toward outsourcing IT applications.
Private investors have contributed $500,000 to jSpan Corporation. These funds will be used for an initial test market deployment, the formation of a management team, as well as to license key technologies. The company is currently seeking $3.2million more via Series A Preferred Equity. These funds will be used to support a full-scale product launch within six months from the closure of funding.
Business Model
jSpan can provide remote access services by partnering with Internet Service Providers. Remote access is managed via an Internet-based Webtop, which aggregates applications from remote offices networks and other Internet locations. A per-user monthly subscription fee is the main way to generate revenue. Value added services and premium subscriptions eventually increase the revenue stream by including transaction and syndication charges.
Co-marketing and revenue share agreements with strategic network services providers drive customer acquisition. Direct end-user marketing (advertising or promotions) will help build customer awareness as well as solidify the jSpan brand. Partnerships with Internet content providers, service provider, and product manufacturers will allow for content syndication to build a wider customer base.
Opportunity
Remote access to important business information is in high demand because of the flexibility of work and the mobile workforce. Forecasts estimate the mobile workforce in the United States alone will exceed 47 million employees four years from now. Mobile computing devices are being adopted by independent professionals and small to mid-sized businesses to keep them competitive. However, these individuals lack the technical and financial resources to create a comprehensive remote access solution.
Professionals increasingly require access to multiple offices from multiple locations. Around 23% of Internet users at home brought work home on weekends and nights, while 17% used the Internet as a way to start a business from home. The number of telecommuters has shown rapid growth, exceeding 9.7 million this year.
According to Access Media International, small businesses invested $138 billion on information technology and telecommunications products last year. Companies seek technology solutions that are more effective for a small number of employees than a larger market. These companies are outsourcing technology services in an increasing number.
Product
jSpan provides remote access through a universally accessible Webtop using Virtual Private Networking (VPN) technology to establish a secure connection to the remote target system. These two technologies combined eliminate the need to create a custom remote access solution. Access can be made via xDSL (T1) or cable modems. The result is a secure Internet hosted Webtop with functionality similar to an office workstation. Using existing core technology will allow jSpan a faster entry into the market and reduce development time. Premium subscriptions and value-added services will increase the customer’s value proposition over time.
Financial Analysis
Gross revenue is based upon per user revenue of $21.25 monthly. It is forecast to reach $422 millions by the end five years of operations. International Data Corporation has calculated the target market size based on the projected mobile workforce. International expansion and additional opportunities for consumers or enterprises could increase the potential market.
jSpan consolidates the market for independent professionals and small businesses. It is a potential target for companies that provide goods or services to this segment. Based on a $450 acquisition cost per user, management estimates an acquisition valued of $105 millions at the end-of-year three. This will rise to over $1 million by the time of year five.
Management teamjSpan has assembled a group of technical experts and managers. John Millar (founder) and Kim Niquette (founders) have both worked in high-growth technology companies as well as international entrepreneurial organisations. jSpan’s technical staff includes people who have had software development and operational experience with Raytheon Corporation, Sun Microsystems, Raytheon Corporation, as well as a range of start up ventures. After a major funding event, additional senior management will be added to the team. jSpan has also assembled a strong advisory team that includes both experienced entrepreneurs as well as leading professionals.
John G. Millar (Co-Founder, CEO).
Kim Niquette is Co-Founder and Chief Financial Officer.
Norman Walters COO.
Carlos Garcia, Technology Specialist.
Board of Advisors
Joseph Addison, Co-Founder and CFO of StartABusiness.com.
James Smith, Vice President of Business Development for Exodus Networks.
Michael M. Rodgers, Partner, Watson, Sonoma, Goodson & Rodgers.
Peter J. Wilson is Director of Business Development for Advanced Network Communications.
Additional biographical information concerning the Management Team and Board of Advisors is available in topics 7.1, 7.2 respectively.
1 “Where’s Office?” U.S. U.S.
#8220Online Nation: 1998 U.S. Internet User Survey #8221, International Data Corporation. 1998.
3 “Where’s the Office?” U.S. U.S.