Moving a Technology Company from Israel to America: Perfecto Mobile CEO Eran Yaniv (Part 5)

Sramana: How has your company developed over time? Since you evolved into an enterprise product, how has your deal size changed?

Eran Yaniv: I can give you an example. There is a company on the retail side that started with us using a $500 a month subscription. When we looked at their usage, we saw that they were very strong users. We connected with them and got them to start expanding their use of the public cloud so that they moved to a few thousand dollars in subscription feeds. Shortly thereafter they went into a private cloud solution for a deal that approached $200,000 a year. They recently expanded their private cloud globally, so it now covers North America and Europe. We are now talking about a deal size that is just shy of a million dollars a year.

My message here is that if you have a tool to draw them in, it will likely prove effective. That is a very good way to go even if you are looking to attract large companies. Our initial deals have been struck over the phone. A large deal on a private cloud, which is around $200,000 in subscription fees, can be closed over the phone because it is likely an upsale from an existing smaller service. The foundation for all of this is providing a good service. That yields expansion and referrals like you would not imagine. Your first customers are the most important ones.

Sramana: You also said something else very important. You have to let people try out your service and then provide them scaling models. If they like your service, they will scale.

Eran Yaniv: Exactly. You draw them in and then you show them how you can provide value. The sales strategies are already there; you just have to provide value. Our business model is good for us and the customer. We charge a subscription so there is always a renewal on the line. That is good for us because it is a lot of money. It is good for the customer because they get absolutely top notch service.

Sramana: What percentage of your business is corporate and what percentage of your business is powered by small ISVs?

Eran Yaniv: There is an 80/20 ratio. What that means is 20% of our customers are enterprises, and they generate 80% of our revenue.

Sramana: Are those the only two segments that you cater to?

Eran Yaniv: The offering is definitely horizontal. From an enterprise perspective, we serve all enterprises. Mobile operators are very big and loyal customers. We serve them like we serve the enterprise. We have interesting use cases for them and we sell to them. We have sales people who are experts at selling into that segment. From that perspective we sell to enterprises, telcos and ISVs. We are creating all types of offerings that would make us suitable for the SMBs.

Sramana: What are the existing tools used in this market?

Eran Yaniv: We are complimenting a set of services and tools that address the regular software put out there by HP, IBM and Microsoft. Our strategy is to integrate with them. We have opened our platform which lets us create product and sub-product which connects well with what an enterprise already has in place. If a potential customer is an HP shop using the Mercury product for testing and monitoring, and you would like to extend that into the mobile space, then you can do that with us by using the proper plugins. That is a very strong value proposition.

This segment is part 5 in the series : Moving a Technology Company from Israel to America: Perfecto Mobile CEO Eran Yaniv
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