How to Create an Industry Cloud Leader

Going Vertical - Industry Cloud Forum Keynote Gordon Ritter � November 12, 2015

ABOUT EMERGENCE

§ MISSION: To invest in visionaries who are building the most important enterprise technology companies

§  Firm was founded in 2003 with the thesis that enterprise software would move to the cloud

§  Industry focused cloud companies are just getting started

$114 Billion

2.5x Faster

OPPORTUNITY

§  $114 Billion: dollars spent on vertical-specific software in 2014, growing 2.5x faster than next largest software category (CRM) (Gartner, March 2015)

§  Huge opportunity to build the cloud solutions that will power the world’s largest industries for the next several decades

§  Horizontal cloud leaders can’t effectively compete

§  New “Industry Cloud” companies are emerging to lead this transformation

§  Emergence Capital is investing in these companies

TWO TYPES OF INDUSTRY CLOUD COMPANIES

ENABLERS: Work with existing

industry model

DISRUPTORS: Disrupt the existing

industry model

&

•  Feared by the industry

•  Build marketplaces

•  Dismantle high margins

•  Often take over direct consumer relationships

•  Reach a tipping point..or not.

•  Partner to the industry

•  Focus on applications, data, and services

•  Layer cake product strategy

•  Talent trifecta in executive team

•  High market share is attainable

WHAT WILL IT TAKE FOR

ENABLERS TO WIN?

CUSTOMER INTIMACY

INDUSTRY CLOUD “CUSTOMER INTIMACY” AUDIT

How do you know if you are on the right track?

10

QUESTIONS TO ASK

YOURSELF ABOUT THE

RELATIONSHIP BETWEEN YOU

AND YOUR BUYER

ARE YOUR CUSTOMERS?

3 Recognizing  your  ROI  case  on  mul3ple  dimensions  including  growth,  cost  savings,  and  customer  reten3on?  

1 Spending  the  majority  of  their  day  working  in  your  products?    

2 Buying  your  core  product  ini3ally,  and  later  purchasing  your  addi3onal  products  that  address  mul3ple  aspects  of  their  business?  

4 Discussing  you  posi3vely  at  their  board  mee3ngs?  

5 Relying  on  you  as  the  “source  of  truth”  or  “system  of  record”  for  their  most  cri3cal  data?  

Indu

stry  Cloud

 Aud

it  

ARE YOUR CUSTOMERS?

8

6

7 Leveraging  your  deep  domain  datasets  and  exper3se  to  generate  insights  about  their  own  customers?  

9

10 Invi3ng  you  to  speak  at  their  conferences,  offsites,  and  other  strategic  events?  And  sending  their  C-­‐Level  execs  to  your  events?      

Considering  you  as  a  plaKorm  where  other  applica3ons  can  be  built  and  launched?    

Using  your  “last  mile”  solu3on  to  help  them  beMer  reach  and  understand  their  customers?    

Asking  for  your  input  on  their  own  product  development  and  rollout?    In

dustry  Cloud

 Aud

it  

INDUSTRY CLOUD FORUM

= OPPORTUNITY TO LEARN FROM THE

LEADERS

AGENDA

9:45 Becoming the Most Important Strategic Partner for our Customers Peter Gassner, CEO, Veeva Systems

10:30 Lessons Learned from LoopNet's Vertical Ascent Rich Boyle, Former CEO, LoopNet

11:00 Vertical Go-to-Market Strategies Charles Thornburgh, CEO, Civitas Learning & Katy Keim, CMO, Lithium

11:30 Reaching the End-customer: Strategies for the “Last Mile” Marcus Ryu, CEO, Guidewire

12:00 Lunch (industry round tables) 1:00 Leveraging Platforms to Build Vertical Solutions

Aaron Levie, CEO, Box

1:30 Moving from Horizontal to Vertical Greg Smirin, Former COO, ClimateCorp

2:00 Building Credibility as a Start-up in a “Traditional" Industry Nima Ghamsari, CEO, Blend

2:30 Fostering Partnerships Across an Industry Andy Hurd, CEO, MedeAnalytics

3:00 Cookie Bar Reception with Speakers, Sponsors & Platforms

ABOUT EMERGENCE CAPITAL

@emergencecap Emergence Capital, based in San Mateo CA, is the leading venture capital firm focused on early and growth-stage enterprise cloud companies. Its mission is to invest in the cloud visionaries who are building the most important business applications. The firm's investments include Salesforce.com (CRM), SuccessFactors (SFSF, acquired by SAP), Veeva Systems (VEEV), Yammer (acquired by Microsoft), and Box (BOX). Emergence Capital has over $910 million under management. More information on Emergence Capital can be found at www.emcap.com.

Gordon Ritter, General Partner, Emergence Capital, @gordonritter

gritter@emcap.com

ABOUT EMERGENCE CAPITAL