Internet ASP Business Plan

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 Webtop user interface of jSpan (the Webtop) allows for the integration of legacy systems, online applications and value-added services in one working environment. jSpan is able to distribute other application service providers through the Webtop interface, as well as infrastructure built at partner ISPs. jSpan takes advantage of the rapid growth in demand for remote access and the industry trend towards outsourcing IT applications.

Private investors have contributed $500,000 to 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 seeking additional $3.2million through 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 provides remote access services through partnerships with Internet Service Providers (ISP), broadband wholesalers, and other network service providers. Remote access is managed via an Internet-based Webtop, which aggregates applications from remote offices networks and other Internet locations. A per-user monthly subscription fee is the main way to generate revenue. 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 or promotions) will help build customer awareness as well as solidify the jSpan brand. Partnerships with Internet content providers, service provider, and product manufacturers will allow for content syndication to build a wider customer base.

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- to medium-sized businesses need to adopt mobile computing devices in order to remain competitive. However, they lack the financial and technical resources to implement remote access solutions.

Professionals adopt a work style that requires multiple access to office applications. 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 working remotely has increased rapidly to 9.7 millions this year.

Access Media International reported that $138 million was spent last year by small businesses on information technology products and telecommunications. Companies seek technology solutions that are more effective for a small number of employees than a larger market. Increasingly, these companies are outsourcing technology services.


jSpan allows remote access via a universally accessible Webtop. It uses Virtual Private Networking (VPN technology) to establish a secure connection with the remote target system. This combination of technologies makes it possible to eliminate the cost and complexity involved in custom configuring a 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. Using core technology in the market will help jSpan reduce development time and allow it to rapidly enter the marketplace. Premium subscriptions, value added services and other value adds will help customers to improve their 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. International Data Corporation determined the size of the target market based upon the projected mobile workforce. Potential market growth could be significantly increased by international expansion or additional opportunities in the consumer or enterprise market segments.

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 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 GroupjSpan has assembled a team consisting of both technical and experienced managers. John Millar & Kim Niquette, founders, have extensive experience in management of high-growth technology businesses and international entrepreneurial organizations. jSpan’s technical team includes software development and operations professionals who have worked with Sun Microsystems and Raytheon Corporation as well as a variety of start-ups. Additional senior managers have been identified, and they plan to join the group after a major financing 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, CFO of

James Smith, Vice President Business Development at Exodus Networks.

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

Peter J. Wilson is Director of Business Development for 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.

2 &#8220’Online Nation: 1998 U.S. Internet User Survey &#8221’. International Data Corporation, 1998.

Where is the Office? U.S. U.S.

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