Internet ASP Business Plan

Internet ASP Business Plan

Internet ASP Business Plan

jSpan Corporation (jSpan), an Application Service Provider, (ASP) provides remote access services via the Internet to small and medium-sized businesses as well as independent professionals. The Webtop interface to jSpan – the jSpan user interface -#8211 is used to integrate legacy systems with online applications and value added services into a single work environment. jSpan is able to distribute other application service providers through the Webtop interface, as well as infrastructure built at partner ISPs. jSpan uses the boom in remote access and the industry trend to outsource IT applications, to benefit from the increased demand.

jSpan Corporation has raised $500,000 from private investors. These funds will be used to establish a test market, hire a management team, and license key technologies. The company is looking for additional $3.2 million via the issuance Series A preferred equity. These funds will enable the company to launch a full-scale product within six months of closing funding.

Business model

jSpan offers remote accessibility services through partnerships with Internet Service Providers. Remote access is managed using an Internet-based webtop that aggregates applications across remote office networks and other Internet locations. The main source of revenue is a monthly subscription fee that per user. A premium subscription and value added services eventually add transaction and/or syndication fees to the revenue stream.

Revenue sharing and co-marketing agreements with strategic network service providers are the key to customer acquisition. Direct end-user marketing (advertising or promotions) will help build customer awareness as well as solidify the jSpan brand. The jSpan brand will be strengthened by content syndication via partnerships with Internet content providers, product manufacturers, and service providers.

Market Opportunity

Remote access to vital business information is increasingly demanded because of the flexible work environment and mobile workforce. According to forecasts, the US will have more than 47 million mobile workers within four years. Small to medium businesses and independent professionals are adopting mobile computing devices rapidly in order to stay competitive. However the technical and economic resources required to implement a complete remote access solution are lacking.

Professionals have adopted a work-style that requires them to be able to access multiple office applications from various locations. In the last year, around 23% of Internet users brought their office work home over weekends and 17% used them to run a home-based enterprise. The number who telecommute has risen rapidly, to more than 9.7million this year.

Access Media International reported that $138 million was spent last year by small businesses on information technology products and telecommunications. Businesses seek technology solutions that maximize the use of a smaller employee base while addressing a larger market. Increasingly, these companies are outsourcing technology services.


jSpan gives remote access to a Webtop accessible to all. The universal Webtop uses Virtual Private Networking to establish a secure connection between the remote target systems. These two technologies combined eliminate the need to create a custom remote access solution. You can access the Internet via xDSL, cable, or T1 modems. This secure Webtop offers functionality comparable to an office-based computer. jSpan will be able to quickly enter the market by taking advantage of the existing core technology. Over time, premium subscriptions and value added services improve the customer value proposition.

Financial Analysis

Gross revenue is determined by per user revenue at $21.25 per month. This revenue is expected to rise to $422 million in the fifth year of operations. The target market size is based on the projected mobile workforce as determined by International Data Corporation. Potential market growth could be significantly increased by international expansion or additional opportunities in the consumer or enterprise market segments.

jSpan consolidates the fragmented market for independent businesses and professionals. This makes it a potential acquisition target to corporations offering goods and services in this market 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&#8217's technical team has software development and operation experience at Sun Microsystems, Raytheon Corporation and a host of start-ups. Additional senior managers have been identified, and they plan to join the group after a major financing event. jSpan has also assembled a strong advisory committee that includes both experienced entrepreneurs and leaders from the world of professional services.

John G. Millar, Co-Founder and CEO.

Kim Niquette Co-Founder and CFO

Norman Walters, COO.

Carlos Garcia, Technology Specialist.

Board of Advisors

Joseph Addison, co-founder and CFO at StartABusiness.com

James Smith, Vice president of Business Development for Exodus Networks.

Michael M. Rodgers, Partner, Watson, Sonoma, Goodson & Rodgers.

Peter J. Wilson, Director Business Development at 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 The 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.

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