Internet ASP Business Plan

jSpan Corporation (jSpan), is an Application Service Provider(ASP) that provides Internet-based remote access to professionals and small businesses. The jSpan user interface – the Webtop – serves to aggregate legacy systems, online applications, and value-added services into one work environment. jSpan can use the infrastructure and Webtop interface of partner ISPs to be a distribution network for application service providers. jSpan exploits the growing demand for remote access as well as the industry trend toward outsourcing IT applications.

Private investors have invested $500,000 in jSpan Corporation. The funds are being used to launch an initial test market deployment, complete the management team and license key technologies. The company is currently seeking an additional $3.2 million through the issuance of 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 offers remote accessibility services through partnerships with Internet Service Providers. Remote access is managed through an Internet based Webtop that aggregates applications from remote office networks and other Internet locations. The primary source of revenue is via a per-user monthly subscription. A premium subscription and value added services eventually add transaction and/or syndication fees to the revenue stream.

Co-marketing and revenue sharing agreements are key to customer acquisition. Direct end user marketing (advertising/promotions), will be used to increase customer awareness, and strengthen the jSpan branding. A wider customer base will be built through content syndication by partnerships with Internet service providers, content providers, and product manufacturer partners.

Market Opportunity

The demand for remote access is growing because of flexible work arrangements and an ever-increasing mobile workforce. The United States will see a mobile workforce of 47 million by 2020, according to estimates. Independent professionals and small and medium-sized businesses must adopt mobile computing devices to stay competitive. However they lack the economic and technical resources necessary to implement a complete remote access solution.

Professionals adopt a work style that requires multiple access to office applications. 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 who telecommute has risen rapidly, to more than 9.7million this year.

Access Media International claims that $138B was spent on information technology last year by small businesses. Businesses seek technology solutions that maximize the use of a smaller employee base while addressing a larger market. These companies are outsourcing technology services in an increasing number.

Product

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. This combination of technologies makes it possible to eliminate the cost and complexity involved in custom configuring a remote access solution. Access can also be provided via T1 or cable modems. This creates a secure Internet hosted Webtop offering functionality comparable to a workstation in an office. Using the core technology available on the market will enable jSpan to reduce development time and quickly enter the market. Premium subscriptions, value added services and other value adds will help customers to improve their value proposition.

Financial Analysis

Gross revenue is calculated on per-user revenue of $21.25 per monthly and is expected to surpass $422 million by year five. International Data Corporation’s projection of mobile workforce size as a target market. The potential market could be substantially increased by additional opportunities in the enterprise and consumer markets, as well as international expansion.

jSpan consolidates the highly fragmented market of independent professionals and businesses. Corporations that offer goods or services to this market segment may be interested in acquiring jSpan. Based on a $450 user acquisition cost, the management has estimated an acquisition value at $105 million by year three. It will increase to over $1B by year five.

Management teamjSpan has assembled a group of technical experts and managers. The founders, John Millar and Kim Niquette, have management experience in high growth technology companies and international entrepreneurial organizations. jSpan’s technical group includes members with software development experience and operations experience from Sun Microsystems (Raytheon Corporation) and a number start-ups. Additional senior managers have been identified and plan to join the team subsequent to a major funding event. jSpan also has a strong advisory board made up of experienced entrepreneurs and top professionals from leading service organizations.

John G. Millar is the CEO and co-founder

Kim Niquette, co-founder and CFO.

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 at Exodus Networks.

Michael M. Rodgers, partner at Watson, Sonoma, Goodson & Rodgers.

Peter J. Wilson, Director of Business Development at Advanced Network Communications.

Additional biographical information regarding the Management Team or Board of Advisors can be found in topics 7.2.1 and 7.2.2, respectively.

1 “Where is the Office?” U.S. Remote and Mobile Worker Market Review and Forecast,” International Data Corporation, July 1999, p. 2.

#8220Online Nation: 1998 U.S. Internet User Survey #8221, International Data Corporation. 1998.

³ “Where’s the Office?” U.S. Remote and Mobile Worker Market Review and Forecast,” International Data Corporation, July 1999, p. 2.