Corio and the Application
Server Provider Marketplace
David K. Nielsen
Regional Sales Vice President
October 29th, 2003
** Corio Confidential Information**
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Agenda
 The ASP Business Landscape
 The Early Days
 Sales and Marketing at Corio
 Lesson Learned
** Corio Confidential Information**
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The CIO Dilemma
Reduce costs
of current enterprise apps
IT
Organization
Deliver new
applications fast,
at low cost and
low risk
Eliminate
multi-year,
multi-million,
multi-consultants
applications projects
3
Absorb required
applications
maintenance
expenses




“Do more with less”
Adapt to variable user demands
Budgets will not increase
Results required in months
** Corio Confidential Information**
Enterprise Applications Management
Architecture
We support an end-to-end scope
for our customer’s mission critical
enterprise applications
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Full Life Cycle Management of Enterprise Software Assets:
Projects and Production
Major Technical Upgrade
 Augmented architecture
 Consolidation
 New security
New
Implementation
PRODUCTION
MANAGEMENT
 Updates/patches
 Break/fix
 Functional
support
 Monitoring
 Enhancements
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** Corio Confidential Information**
Major Functional Upgrade




New modules
New business units
New geographies
New major customization
Representative Clients
Financial Services
Communications,
Content and
Hospitality
Public/Non-Profit
Sector
Consumer and
Industrial
Manufacturing
High Tech
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** Corio Confidential Information**
IDC Leadership Grid
Source: IDC Leadership Grid, 2002
175,000 Users Supported
1 Billion Transactions Processed
100,000 Service Requests Fulfilled
1,000 Projects Executed
1,000 IT Professionals Engaged
$100 Million Investment in
Processes and Technology
"Corio's success with top customers validates that the
enterprise ASP model continues to gain traction in the
Fortune 1000."
Bill Martorelli, Giga
“By Showing steady progress toward profitability and
offering new usage-based pricing for services, Corio is in a
good position to take advantage of the increasing interest in
On Demand computing. It has struck a good balance
between the original rigid ASP model and the “your mess for
less” traditional outsourcing model.”
Lance Travis, AMR
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“The competitive environment in this market is changing
very rapidly, and leaders are beginning to emerge.
According to our analysis, Corio is a leader in the
enterprise ASP market today, and the company has a clear
plan to retain that position in the future.”
Amy Mizoras, IDC
Leveraging Core Competencies
IT Technologies
Projects
Off-Shore
Apps
Management
Systems
Integrators
ISVs
Functional S/W
IT Outsourcers
Infrastructure
Core Competency
$/hour
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BPR
Software
Licenses
Asset Management
** Corio Confidential Information**
Enterprise
Application
Management
Corio’s Annual Revenue Growth
15%-25% Revenue Growth Expected This Year
65-70
70.0
56.1
60.0
49.6
50.0
44.9
$
M
i
l
l
i
o
n
s
40.0
30.0
20.0
10.0
2000
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2001
2002
2003
Corio iSRVCE
A Technology Resource Management (TRM) Solution
Corio iSRVCE provides Corio customers with visibility and control over their
hosted applications by tying Support, On Demand Services, Content Exchange,
SLAs, Billing and Knowledge into a cohesive IT management system.
 Support
–Track and manage service
requests and incidents
–Reporting and analysis of
service requests
 On Demand
–Learn about relevant On
Demand Services, such as
Corio Development, Delegated
User Provisioning
–Place Orders
–Track Provisioning Status
–Manage Shopping Cart
 Content Exchange
–Upload/Download content from
your applications
 SLAs
–SLA Metrics and reporting
–Track contracts & addendums
 Billing
–Online bill presentment
 Knowledge
–Document version, collaborate,
search and archive
–Contracts, project dashboards,
billing, reporting, architecture
diagrams etc.
10 ** Corio Confidential Information**
iSRVCE DEMO
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Agenda
 The ASP Business Landscape
 The Early Days
 Sales and Marketing at Corio
 Lesson Learned
** Corio Confidential Information**
12
Corio History
History
Jonathan Lee founded Corio in September 1998. With an intimate
understanding of the complexities and challenges associated with fast growth,
Jonathan transformed DSCI (a virtual "IT team for hire" that he also founded)
into Corio.
Excite@Home signed on as Corio's first customer and was brought live by
Corio’s PeopleSoft Professional Services in fewer than 60 days, becoming the
ASP industry's first live-hosted customer.
This win provided “proof-of-concept” to an ASP market that analysts predict will
exceed $20 billion by 2002 and helped to catapult Corio into its industry leading
position.
Corio went from the initial 20 person founding team in September of 1998 to 580
employees and a successful IPO in July of 2000. (18 months)
After two strategic acquisitions, Corio now has approximately 120 customers
and over 300 employees.
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Corio Milestones
Key Corio Milestones
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September
1998
Corio Founded - Birth of FastLane™ Methodology
November 1998
First Corio Customer - Excite@Home (Live in 60 Days)
Feb – April
1999
Strategic Partnerships Established: PeopleSoft, Exodus,
Sun Microsystems, Marimba
May 1999
Series B Financing
July 1999
Expansion to 11 Offices Nationwide
August 1999
Orion™ Integrated Application Platform Live; Senior
Management Team on board
October 1999
Strategic Partnerships Established: Siebel Systems, XO
Nov 1999
Series C Financing; Corio™ Intelligent Enterprise
Launched; Strategic Partnerships Established:
BroadVision, Commerce One
Dec 1999
Corio hosts our first ever Siebel customer, Netratings,
30 users.
Dec 1999
Corio Express™ Financials Launched
Jan 2000
Microsoft Invests in Corio; Corio Offers hosted
Microsoft Solutions
Feb – March
2000
Strategic Partnerships Established: SAP, Moai, Requisite
Technology
April 2000
Corio Files for IPO; Strategic Partnership Established:
Ernst & Young
May 2000
Corio hosts the first ever (first anywhere in the world),
Siebel Enterprise 2000 customer, Extreme Networks.
Over 650 users, International Deployment to 15
countries.
May 2000
Corio launches Corio eMarket™ solution for net market
makers
Corio Milestones
Key Corio Milestones
July 2000
Corio makes initial public offering, becoming a publicly
traded company on the NASDAQ under the symbol
'CRIO'
October 2000
Corio's first Global Trading Exchange goes live; Corio
announces financial results for third quarter of year
2000
November 2000
Corio announces a strategic partnership with (I)
Structure; Corio launches the Siebel FastLane Upgrade
Program
December 2000
Corio launches Corio Intelligent Infrastructure (CII);
Corio launches Corio Security
January 2001
Corio announces recent customer wins: Coreon, Elemica,
Forest Express, Hitachi; Corio announces fourth quarter financial
results on Jan 30th 2001; Corio signs agreement with Yahoo! to
offer Hosted Enterprise Portal Solution
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February 2001
Strategic Partnership Established: Oracle; Another
Corio Customer goes live: Enporion Marketsite
June 2001
Corio’s First PeopleSoft v8.0 Customer goes live:
WebGain; Quadrem Selects Corio to Host Global Mining,
Minerals and Metals eMarketplace: Leading Industry
eMarketplaces Continue to Select Corio as Their ASP of
Choice; Ingersoll-Rand Selects Corio: Enterprise
Agreement for Shared Services Signed
July 2001
Corio’s Second PeopleSoft v8.0 Customer goes live:
Terra Lycos
Corio Milestones
Key Corio Milestones
August 2001
National Gypsum selects Corio for PeopleSoft 8.0 HR and
Financials implementation and hosting; Corio
Successfully Migrates and Upgrades Hitachi America to
SAP R/3 Release 4.6: Corio Delivers Accelerated
Upgrades and Applications Management for Customized
SAP Solutions
September 2001 Carlson Companies – global leader in travel and
hospitality industries. 188,000 employed under its brands.
Brands operate in 140 countries
$31 billion in annual system wide revenue
Corio service – PeopleSoft HR and payroll solution is
currently being implemented at Carlson.
June 2002
Corio announces Corio iSRVCE, a Technology Resource
Management (TRM) Solution
Application interface provides Corio's customers with a
technology platform extending visibility and control of
Corio managed applications.
IDC Places Corio in the ASP Leaders’ Quadrant
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September
2002
Corio completes purchase of QCS ASP assets. New
customers include: Department of the Treasury, Toshiba,
Sumco, American Express, ABN AMRO among many
others
September
2003
Corio is selected by the United Nations to provide hosting
and applications management services for it’s worldwide
PeopleSoft deployment
October 2003
Corio announces the purchase if Nexus Technology, a
leader in the hosting and applications management
industry focused on SAP.
First Wave of ASPs
New Business
Models & Value
Propositions
Legacy Business
Background
Business
Executions
Challenged

Data Center Co-Location

Bundled Pricing

Core Competence

Telecommunications

“All You Can Eat”

Operational Efficiencies

Independent Software

Rent, Resell, or Finance

Large, Up-Front
Vendors

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Systems Integrators

Software & Infrastructure
Investments in Physical
“Free” Consulting
Assets
Market Mood Swings
Industry Evolution
Increased
Awareness of
Challenges
Early Failures
Many New Entrants
“Destroy the Hero”
Long-Term Leaders
Established
Press Hype
More Failures
Early Adopters Buy In
Market Leaders Cross Chasm
Industry “Founded”
Hype
Doom
Renewal
“Create a Hero to Destroy One”
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Initial Market Conclusions
Unique Model
 The ASP
Model is a Unique
Model
Not
a Consulting Business
Not
a Software Business
Not
an Outsourcing Business
Not
an Infrastructure
Business
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Scalability
 Creating
a Scalable ASP
Business Model is the Core
Challenge Lying Ahead
Agenda
 The ASP Business Landscape
 The Early Days
 Sales and Marketing at Corio
 Lesson Learned
** Corio Confidential Information**
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Marketing Primary Responsibilities
 Campaigns targeting New Prospects
– Corio Applications on Demand Campaign
– Corio / SI & ISV Partner Programs
 Campaigns targeting Corio Customers
– Corio Insights: Newsletter
– Corio Enhancements web seminar






PR Schedule – Target weekly releases
Industry Analyst Relations
Events - PeopleSoft Users Conference
Web Site
Product Re-freshes - Update collateral and support materials
Other
–
–
–
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Customer Advisory Board
Corio iSRVCE
Customer Reference Call in Program
Motivating Events to Engage An ASP
(Some of our Marketing Strategies are geared to Trigger Events)
Trigger Events
Upgrades
New
Implementations
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Cost
Reduction
Initiatives
Business
Continuity
Support
New
Businesses
Demand Process
From Generation, to Qualification, to Prospect
{-------------M a r k e t i n g -----------}{-----------S a l e s------------}
Generating
Qualifying
Prospect Identified
Goal = Identify
opportunities
Goal = Convert
B/Cs to A leads
Goal = Convert A lead into
Closed Deal
B/Cs
Campaigns
A
Events
Telebusiness
Google
Calls
Closed
Pipeline
Emails to Corio
Inbound Calls
PR/Website Offers
Emails
Forecast
Outbound Calling
Referrals
SI Partners
ISV Partners
Technology
Partners
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Sales
Is Primary
Lead on these
lead sources
Lost / Off
Agenda
 The ASP Business Landscape
 The Early Days
 Sales and Marketing at Corio
 Lesson Learned
** Corio Confidential Information**
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Lesson’s Learned from Silicon Valley Start Up
 Be VERY clear on what pain you are out to
solve
 Stay VERY connected to your customer
 Be Flexible
 If you are VC backed… they will mostly likely
be active in the early days.
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Questions???
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