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I will publish a list of the competitors and each of you can...

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T.E.P.

3,387 Posts.

4561

15/03/20

18:47

Post #: 43503767
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Originally posted by Vmk Research: ↑

Good question from mitchy.

Yes there are products that compete with LVT Design. (But Teams is not one of them!).

The competition to LVT design falls into three categories:

1. Systems Integrator. This is the old model where an organization hires an external systems integrator to build them an intranet that provides the organization with a portal that links employees to internal data and all the software packages that the organization has purchased (Dynamic, 365, citrix etc). This is the old model but it is still the model that by far the majority of organizations use and the greatest number of mid/large organizations intranets have been coded by a systems integrator and are maintained/updated by a systems integrator. Systems integrators and IT consultants do much more than build intranet portals (for example cyber security etc) but this part of their business is like the book store facing Amazon. As companies and organizations move from their own servers to the public cloud, many of them are switching to cloud based portal software like LVT Design. Its sounds like your organization has made this move.

2. Intranet-in-a-box software. There are literally dozens of vendors in this space. They typically aim at small/mid sized organizations . The product offers a turn-key intranet for a smaller company and often/usually includes providing server space as well. LVT competes in this space by offering a freemium service. If you are a smaller organization based on MSFT enterprise software eg 365 cloud or Azure, you can download the freemium version of LVT Design for free and build your own portal and home page with very basic IT skills. As long as you can click and drag and know a bit about the software you want on your platform, you can have an up and running very basic portal that links all employees to your dropbox, your sales software (salesforce.com etc) and your Yammer account etc. LVT has never revealed how many users have downloaded their freemium service. They treat it as a future source of sales leads. Intranet in a box is never going to suit the needs and sophistication of mid/larger organizations .

3. Cloud based SAAS Intranet portals/ aka "intelligent workspace software". There are several providers in this space. These are the direct competitors of LiveTiles. We have a list but Im not at my office. I am happy to post it and will do later.
LiveTiles is the largest by a significant margin. I recall that they are more than 3X the next largest competitor. Wizdom was the largest competitor in Europe.

This is a highly fragmented space. It is a huge space. It is a space undergoing rapid change.

Every mid and large sized organization in the world has an intranet for its employees/members. . Less than 10% of those organizations have switched to category 3 above and we estimate that at least 80% of them will. Within the cloud based intelligent workspace software space , LVT is by far the largest player but it has a less than 20% market share (in our estimation) . We think that scale will be an advantage......(i) you are amortizing the cost of software development over a larger customer base, so your R& D spend will always be superior to the competition (ii) You will have superior brand recognition so marketing and COA will be less expensive ....So that 1 or 2 or 3 winners will emerge and they will consolidate the industry. If 80% of organizations move to cloud based portal providers and LVT obtains a 30% market share, LVT Design will be a $ 1,100 million revenue product. This is not a forecast......this is just a statement of the size of the opportunity that is out there.
It is currently a land grab.......the best time to win a customer is when they switch to the public cloud. If they choose another intelligent workspace vendor, then it is much harder to persuade them to change. (This is why LVT is cash flow negative and loss making. The underlying product is profitable but LVT is spending as much as it can on marlketing and a salesforce because it wants to get in front of as many organizations as it can)

I will publish a list of the competitors and each of you can judge for yourself which ones you think are going to be the winners.

FWIW......I think there will be two sources of growth for the winners
Stage 1 : the Land Grab, winning customers as they switch to public cloud and displacing system integrators
Stage 2. Consolidation. the larger players acquire smaller less profitable players, Since the fixed cost of providing the software will be the same......those with larger revenues will be able to buy smaller players, keep the revenues and throw out the costs!

Expand

I will publish a list of the competitors and each of you can judge for yourself which ones you think are going to be the winners.

@Vmk Research - I'm sure that you must be bargain hunting across markets right now, but could you please post the list of competitors that you alluded to here in this post?

In return, I will post commentary and investor research into who from that list I believe are likely to be the major contenders to LiveTiles across the coming years...

Cheers,

T.E.P.

LVT Price at posting: 15.0¢ Sentiment: Buy Disclosure: Held
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