P.O Box 262532
Plano, Texas 75026
July 3, 2007
Mr. Michael Corcoran, Chief Marketing Officer
Information Builders, Inc.
2 Penn Plaza
New York, NY 10121-2898
Dear Mr. Corcoran:
In a 2005 study, Gartner Research stated that business intelligence solution services worldwide were forecasted to reach $23.2 billion by 2009. In 2006, Gartner revised the forecast to $25.5 billion with the projection through 2010. Only time will determine if the forecasts are correct, but the growth opportunities for Information Builders are certain.
Your key competitors also recognize the growth potential, and are looking to increase their revenue share by enhancing the BI platform along with supplementary add-on modules, aggressively pursuing the Asian market, increasing sales through channel partners, growing the services side of the business, and actively targeting small to medium businesses (SMB).
One of the most exciting trends that SMBs are embracing is software-as-a-service (SaaS) or on-demand software models. Last year this segment represented 5 percent of the software spending and is expected to accelerate. The benefits are compelling; customers have significantly lower start up costs, experience shorter implementation times, require limited technical resources from the IT department, and can validate the value proposition of BI with limited financial exposure.
This type of service offering would allow Information Builders to enjoy shorter sales cycle times, increase revenue through services, develop a continuous revenue stream, better utilize professional services, and find a distinctive competitive market advantage.
Perhaps we can talk more about some of the emerging trends, and challenges that SMBs are facing. As you can see from the information provided, I have an extensive background in software integration services coupled with a broad career in strategic leadership.
Michael, I have some ideas that may appeal to you and your customers, and I'll call you next week to discuss them with you. Thank you for your time and I'm looking forward to speaking with you.