Enterprise 2.0LEVERAGING CLOUD
SaaS SOLUTIONS

 

Based on our broad software experience, Edison continues to invest in the rapidly-evolving Enterprise 2.0 landscape

Enterprise 2.0 encompasses cloud computing, SaaS applications, storage systems, security, mobile access, data analytics and distributed learning. Enterprise 2.0 represents the next evolution of technologies that automate core business processes and solve infrastructure challenges. These web-based applications operate in virtualized environments in public or private clouds and are configured to be implemented in days or weeks, rather than being customized for delivery in months or years.  Because of the lower cost implementation and delivery model, applications are affordable by the long tail of small to medium sized enterprises and government entities. We identify enterprise market demands and software trends, and then partner with the best management teams to build lasting businesses.

Our successful investment track record across over 100 companies includes Axent (IPO), POMS (acquired by Honeywell), Tangoe (IPO), TrueCommerce (acquired by HighJump), Virtual Edge (acquired by ADP), Visual Networks (IPO) and Vocus (IPO).

Edison’s large network of experienced software CEOs and other executives is an invaluable resource to help build the next generation of companies.

Instant access to applications from anywhere, at any time is driving a new generation of virtualized data centers that scale in response to new applications, capacity fluctuations and changing needs.  Companies are accumulating ever-increasing amounts of data and need the infrastructure, applications and tools to gather, access and analyze this data from a myriad of devices.

Large, monolithic enterprise applications that are expensive to buy and take years to implement have given way to configurable web-based apps that are implemented quickly and are integrated to partners, suppliers and customers as well as other corporate systems.  These less expensive systems have price levels that are attractive to the long tail of small-to medium-sized businesses that can scale usage as they grow without a large upfront investment.

Promising Market Opportunities

- Virtualization
- Data Storage Solutions
- Compliance Management
- Cloud Computing
- Real-time Systems Management
- Sales/Service Automation
- Human Resource/Talent Management
- Business Process Management and Outsourcing

New Investments
Notable Exits

Mobile represents a platform shift similar to the transitions from mainframe to client-server and onto the Internet. Mobility has become a requirement across Edison’s target sectors. We see demand rising for mobile applications driven by a post-PC world dominated by smartphones and tablets, combined with a drive to fully-connect consumers and enterprises. Mobile adoption is driving change in many ways, including how content is consumed, transactions are processed, healthcare is delivered, and marketing is executed.

Promising Market Opportunities

- Mobile Payments
- Mobile Health Solutions
- M-Commerce
- Mobile Marketing
- Wireless Infrastructure Management
- Connected Home
- App Discovery

Portfolio Companies
Notable Exits

Edison finances software and business services companies that address elements of application, network, device, and physical security.

Security remains an attractive sector for Edison. Underlying industry drivers include exponential growth in web traffic and the number of threats at both the network and application layers. Coupled with more transactions occurring outside the enterprise and the proliferation of devices, companies of all sizes need to purchase technologies that focus on maintaining security from the network to the endpoints.

Promising Market Opportunities

- Secure access and authentication
- Application-level security
- Device connectivity control
- Wireless device management
- Software that interoperates with multiple security layers
- Software solutions for homeland defense
- Business services focused on security/compliance

New Investments

Edison invests in software companies that deliver analytics and business intelligence solutions in the areas of data standardization, visualization, real-time reporting, knowledge management and proactive decision support.

Driving investment themes include operational business intelligence, functional dashboards, event-driven systems and integrating unstructured data. Demand for business intelligence and analytics continues to expand driven by the volume, depth and velocity of data. Businesses must manage, integrate and convert data into actionable information.

Promising Market Opportunities

- Data Management/Data Quality
- Collaboration Products
- Content/Knowledge Management
- Performance Management
- Vertical and Departmental Applications
- Real-Time Analytics
- Business Process Dashboards
- Open-Source Business Intelligence Products

Edison finances software products and services companies that serve the education market across K-12, higher education and corporate segments. The education industry is undergoing fundamental changes to improve operations and deliver better student results. This large market is adopting technology solutions, which open new opportunities. Edison understands the unique aspects of education such as seasonality, funding sources, dispersed markets and multiple committee decision making.

Blending online and classroom are vital to learning outcomes. The hosted software model ideally fits the K-12 market. Web-based software drives college applications and corporate learning. Edison pursues opportunities in corporate education centered on real-time information, specialized online training and digital learning.

Promising Market Opportunities

- Assessment Solutions
- Career Training
- Digital Content
- Decision Support Tools
- Gifted & Talented Programs
- Mathematics & Science
- Turn-key Online Programs
- Professional Development
- Enrollment/Retention Solutions
- Testing & Measurement
- Virtual Classroom

Portfolio Companies

Edison finances software and business services companies seeking to bring their solutions to governments at the federal, state and municipal level. Edison’s investments within information security have always had government as a leading customer. In varied software applications within regulated industries such as energy, pharmaceutical and transportation, Edison has a track record of finding and building growth companies. The financial management of government programs is an attractive sector with budgeting, grant management and licensure software opportunities. Transaction-based cloud software models fit within state and municipal niches that require annual or periodic inspections.

Government IT buyers across the globe have an increasing need for scalable single-instance, multi-tenant solutions to automate and resolve their issues. The Mid-Atlantic region, with its proximity to the federal government in Washington, DC and sophisticated state and metropolitan governments, has attracted government software firms from many countries.

Promising Market Opportunities

- Environment Health Inspections
- Congestion Management
- Energy Management
- Constituency Management
- Facilities Management
- Social Services Management
- Decision Support Software
- IT Security

Edison finances capital efficient business models and software / services companies that serve the Energy market across consumers, producers and suppliers. Utilities are transforming their IT infrastructures and adopting next generation solutions to meet increasing energy demand. Energy IT adoption is accelerating in many verticals that leverage Edison’s core investment experience including Government, Financial Services, Healthcare and Education.

We understand the unique go-to-market challenges and highly regulated nature of operating in the utility ecosystem. Enterprise 2.0 and Consumer Internet technologies are also disrupting legacy IT infrastructures and user experiences.

Promising Market Opportunities

- Energy Efficiency Software
- Innovating Financing Models
- Data Management and Analytics
- Smart/Intelligent Building Management
- Monitoring and Measurement Solutions
- Utility Security and Privacy
- Mobility Solutions

Portfolio Companies
Notable Exits

Enterprises are beginning to spend more heavily on communications-related products and services as they transition to a productivity and revenue growth mode. The concept of 'bring your own device' has created needs for more flexible Enterprise mobile device management solutions, a niche served by several Edison portfolio companies. Most of these Enterprise-focused communication software models are cloud-based and many are multi-year subscription or managed services models.

The Edison model on the communication service provider side favors software companies versus more capital-intensive equipment vendors. Communication service providers are inclined to work with small companies but understand the issue of risk concentration, so they tend to have loyal customers who offer strong referrals. With communication service provider industry consolidation across borders, this is a global business and lends itself to cloud based transactional business models. Serving the communications needs of the long tail small-and medium-sized business market remains a vibrant market opportunity especially for companies that can craft a full product suite.

We believe that having investments on both the service provider and customer sides gives Edison a unique perspective.

Promising Market Opportunities

- Location based services for enterprises
- Wireless content billing/customer care
- Internet TV content management
- Mobile service comparison shopping
- VoIP in Internet based commerce
- Call center compliance and automation
- Security software for wireless networks
- Wireless carrier interconnect management
- Enterprise IT expense management

The Enterprise 2.0 Team

Joe Allegra
Gary Golding
Sever Totia
Lenard Marcus
Chris Sklarin