SACRAMENTO, Calif., July 19, 2016 /PRNewswire/ -- IDdriven, Inc. (OTCQB: IDDR), developer of the new breed of Identity and Access Management solutions, today issued the following Letter to Shareholders from its Chairman and Chief Executive Officer, Arend Verweij.
With your support and loyalty, we've accomplished much since becoming a public company a short while ago in December of 2015, and launching our Identity and Access Management ("IAM") software solution in the first quarter of 2016. We are focused on creating shareholder value, and are carefully building a strong corporate, sales and marketing infrastructure to facilitate large-scale, high volume global sales starting in the current quarter.
With so many new shareholders investing for the long term with IDdriven in recent months, we are getting more questions, and more sophisticated questions, about our product and business model. So before I cover highlights of our achievements from the first half of 2016, and our outlook for the second half, I will explain further who uses our software service of the same name, the IDdriven solution, why and how it works so cost effectively.
IDdriven Solution: Leading IAM Software as a Service (SaaS)
The IAM (Identity and Access Management) sector of the enterprise software market is just what you expect it to be: a solution that confirms the "Identity" of a company's network users, determines who is authorized for "Access" to the various data or networks, and then "Manages" that access in real time.
Those users may be employees, consultants, partners or vendors. Few if any of whom need access to all of the Company's data; they only need access to the data required to do their job and nothing more. With the alarming frequency of large and small scale data thefts daily, and accidental exposure and loss, companies large and small have demanded a cost effective way to control and manage access customized for every end-user or 'identity.' A person who does not need -- and does not have -- access to sensitive data cannot accidently send it to the wrong person, leave it unprotected on an unsecured thumb drive or steal it.
Access becomes more complicated when you think of a company with tens of thousands of employees, hundreds of whom are hired, fired, promoted or internally transferred to different positions daily. As you can see, this complicates managing access exponentially unless you have a solution that integrates into HR or other company data and automates this function in real time.
Further, for example, to prevent financial theft or error? A company may restrict an employee who 'creates' invoices, from having access to its programs used to 'pay' invoices. Given the proliferation of smart mobile devices, another IDdriven feature is geo-fencing which senses a mobile device's location and, for example, can be set to deny access to company networks from outside the company's property or city.
The IDdriven solution provides all that and much more in an eloquent and easy-to-use solution that can be run from the companies' servers, or in the cloud, or both. The cloud is a relatively new word for an old idea: large, secured server farms that host programs (Software as a Service "SaaS") or massive data (Dropbox data storage) that authorized users can interact with or access. Software that is run from the cloud, like Microsoft Office 365, are considered Software as a Service ("SaaS") because the program is never actually loaded onto your PC, or company server, but rather is accessed directly in the cloud. For more detail on our Company, product and business plan, see our Corporate Profile or Investor Presentation at https://www.iddriven.com/investors/investor-materials/.
Risk Management: Every Company on Earth is a Prospective Customer
The short version is that every company worldwide needs it. Our program is highly cost effective for the largest corporations in the world with 100,000 or more employees, as well as companies with only 100 or a dozen workers as even small businesses hold their customers' credit card and private data.
Our growth potential is enormous. Every company in the world that wants to protect its data from internal breaches, deliberate or accidental, needs to use an IAM solution. And ours is a top-tier program competitively priced and well represented through our leading channel partners.
The threat cannot be overstated, as a prominently published 2015 research survey shows 35 percent of all employees are willing to sell company data for a price. To limit potential damage, companies must ensure access is restricted on a need-to-know basis. IDdriven does exactly that, and adds valuable unique features like the zone-based access control (geo fence) along with numerous other robust features and functionality providing us a powerful competitive advantage.
$10 Billion IAM Marketplace to Double
The cybersecurity market (IAM is a major subset) is one of few fast growing markets in an otherwise rather flat IT marketplace. Industry analysts project the highly fragmented, demand-driven IAM market will double from $9.16 billion in 2014 to $18.30 billion in 2019. This represents a compound annual growth rate (CAGR) of 14.85%.
Companies cannot afford not to invest in the IDdriven solution. IBM recently reported the average consolidated total cost of a data breach grew from $3.8 million to $4 million, and the likelihood of a material data breach involving 10,000 lost or stolen (customer) records in the next 24 months at 26 percent.
Sales and Marketing: The Right Channel Partners
As is common in the software industry, rather than hiring, training and equipping an expensive sales force, we primarily rely on channel partners or what are commonly called "resellers." Even for Fortune 500 companies, technology is evolving too fast for a company's IT department to be expert on all the new technologies introduced daily. Practically all companies to a greater or lesser extent rely on resellers which, today, are actually technology consulting firms that review, screen, recommend, (re)-sell and integrate technology solutions into their client companies IT infrastructure for a fee. As you would expect, top-tier resellers are very selective when choosing which programs to represent. IDdriven is extremely well represented.
From our perspective, engaged resellers are our (marketing) 'channel partners,' and with their established relationships with hundreds or thousands of corporate customers we collaborate closely and pay a sales commission when they resell our solution. As our recent announcements explain, they are our ambassadors to the enterprise world which includes governments (local, federal and agencies), non-profit and for profit corporations. We invest much time and energy into selecting the right channel partners.
Channel partners enable us to expand our sales and marketing footprint at no upfront cost. Our gross margins are high at over 90 percent, so this structure provides us leverage and capital efficiency.
Building a Strong Foundation to Support High Volume Global Sales
Since launching IDdriven in the middle of the first quarter, we have received positive, extensive media coverage by a wide range of IT, software, cyber-security and other trade media publications and which is continuing (see the articles at https://www.iddriven.com/news/).
In addition to working with Microsoft, since our IDdriven solution launch, last month we announced we had engaged two other outstanding US channel partners with Oxford Computer Group (OCG) on the west coast as well as east coast and Zeva, Inc on the east coast.
Additionally OCG, itself a tech consulting firm closely aligned with Microsoft, has funded and developed a proprietary interface software to be used to seamlessly connect IDdriven's IAM solution with Microsoft's Identity Manager Software program. This enables simple integration of both programs and is a major competitive advantage for IDdriven when sold by OCG.
To establish a strong footprint in Europe, earlier this month we announced engaging PATECCO, a Germany-based channel partner that specializes in all things IAM, and has an enviable Fortune 1,000 client roster.
Second Half of 2016: Strong Sales Growth and Additional Channel Partners
The sales cycle for a sophisticate IAM program is about three months. Looking ahead into the second half of the year, we have been focusing primarily on mid and large enterprise sales and anticipate announcing new major or key customers in the weeks and months ahead.
Our fixed costs are quite low for the Company with the industry's next generation of IAM software, and we anticipate becoming profitable in the near future.
We expect to sign and announce other important, major channel partners in the weeks and months ahead in Europe and US.
Strategically, we are occasionally approached and actively evaluate prospective merger and acquisition opportunities. Because previous to IDdriven, as CEO of a successful IAM company named BHOLD whose sale to Microsoft I led, I am often asked about the potential sale of IDdriven to a major software, cyber security or channel partner company? All I can say at this time is that, while we may occasionally entertain an offer, your Board of Directors believes we have an extremely valuable company and is committed to our long term business plan that envisions near term profitability and strong long term earnings growth as we begin capturing share of this rapidly growing marketplace.
On behalf of everyone on the IDdriven team, I thank all our shareholders for your support, words of encouragement and sharing our long term vision.
About IDdriven, Inc.
IDdriven is at the forefront of the new breed of Identity and Access Management ("IAM") Governance solutions. Taking the complexity and upfront costs out of implementation, IDdriven is trusted to protect a company's most vulnerable assets. Founded in 2013, IDdriven is headquartered in Sacramento, California. To learn more, visit: www.IDdriven.com.
Forward-Looking Statement Disclosure
This news release contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond IDdriven's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) commercialization of our software programs, (ii) development and protection of our intellectual property, (iii) industry competition, (iv) we may need to raise capital to meet business requirements. More detailed information about IDdriven and the risk factors that may affect the realization of forward looking statements is contained in our filings with the Securities and Exchange Commission which are available on our website and at www.sec.gov. IDdriven assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
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SOURCE IDdriven, Inc.