The sixth participant is Smartpath
Smartpath is a software vendor and expert in the asset management industry.
Founded in April 2004, based out of Sydney and Melbourne, it began as a services focused business, now primary focus has become development and delivery of core product suite, Loc8 Asset and Help Desk Manager. These suites are offered as Software-as-a-Service model(SaaS) and (perpetual)customer installed application. The product suite includes a comprehensive Asset Management suite and PDA based auditing application.
David Hodges and Owen Batt are the founders. David was working in the IT Service management field managing teams of Cisco based infrastructure engineers and identified an opportunity in the asset auditing and data collection space. In 2004 David hired Owen, who had come from an architecture background and taught himself Flash and PHP development, to create a laptop based auditing tool. Development of the first tool took 12 months and resulted in a Flash based data collection tool with integrated mapping and image integration. Owen and David joined forces as joint directors of Smartpath in july 2004.
David describes offering of Smartpath :
If we breakdown the products and services into three groups:Let us explore bit further how David and Samrtpath is going:
Q. How long it took before it was up and running?
A. The business was planned for approximately 12 months prior to establishment. We began life as a services business providing consulting, software development and asset auditing services.
Q. What stage of your start-up is, stealth mode, beta mode or fully functional?
A. Our product Loc8 is now fully functional with a clear roadmap for future development. Our application suite will be released publicly on distributable CD in April 2008.
Q. What is the main objective/mission behind your venture?
A. Smartpath's mission is to become recognised as an industry leader in the asset management, maintenance management and help desk markets through the delivery of feature rich, affordable, easy to use and deploy Web 2.0 applications.
Q. What is unique about your venture?
A. Smartpath has targeted the greater portion of the market with its Loc8 Asset Management and Help-Desk solution. Traditionally, the asset management software market has been characterised by a few, large, global corporations who sell high-end, high-value solutions affordable by only the largest corporations. These solutions are very large and cumbersome to deploy and labor intensive to implement and maintain. Smartpath’s approach is to offer a feature-rich application at a fraction of the cost of existing systems thereby making asset management accessible to all businesses.
Q.What market segment verticals you are targeting for?
A. Our Loc8 product can be quickly configured to track asset and managed help desks in any industry. We have been successful in the following markets and target them specifically:
We position our three product offerings (Loc8 perpetual, Loc8 SaaS, Asset/SAM services) to market segments individually.
Q. What type of customers you are targeting?
A. We target customers who typically manage and/or track their assets using spreadsheets and typically have as few as 200 or 2million assets. However, Smartpath’s focus tends to be on organisations that have up to 2000 employees..
Q. How many users are using your services?
A. We have approximately 50 customers. We have completed more than 70 projects in the last 3 years and have approximately 100 active users using Loc8.
Q. What sort of marketing you are using to spread the word?
A. Google Adwords, Yahoo Sponsored Links. We have a PR consultant who works with us monthly. We complete direct marketing campaigns 3 - 4 times each year.
We advertise in industry publications such as the Rust Report, Australian Innovation and are members of the Institute of Asset Managers UK, which provides educational and networking opportunities such as participation at seminars and workshops, etc.
Q. How are you measuring the success of your venture? Are their any special mechanisms/tools are in place to monitor the progress?
A. Success is measured by the increase in revenues and units sold per year.
Q. Which are the main competitors or major players in this market segment? What are the main technologies used behind this start-up?
A. Our competitors are generally focused in one of the following areas:
We compete with companies like Pinnacle Software, Hardcat Asset Management, Webhelpdesk.com etc
Loc8 is developed using a Java logic layer and Flex/AIR front end. We use a range of databases for data storage. The technology Smartpath utilises in the development of its Loc8 product provides both a technological and competitive advantage. The company constantly scours available and emerging technologies to maintain its advantages.
Q. Are you using lot of open source tool sets for this?
A. Our databases are open source (with licence components where distributed) most other tools sets are based on the Adobe framework. The packaged operating system is also open source.
Q. What is your operating environment (operating system) and what type of database you are using?
A. Loc8 is installed as a Virtual Appliance using Ubuntu JeOS (Just enough Operating System) wrapped in a VMware package. Loc8 Supports Windows OS between and including Windows 95 and Vista workstation and server versions, Mac OS X, Linux, Solaris and HP-UX
Q. How often do you catch up with others trying similar things and where do you catch up. Do you have dedicated communities in your city?
A. Our development team is involved with the Flex development community in Melbourne.
Q. How much money is needed upfront to start a venture?
A. In retrospect more than we had :) I think it depends on the product offering, market positioning and growth strategy.
Q. What are the main barriers in general for people start their venture in Australia?
A. The biggest barrier to entry for start-ups in Australia is the attitude of the Banking and finance industry. Australia’s investment community is generally risk-averse and consequently, mostly unwilling to invest in new ventures. In IT, where the market is international, another potential barrier is the acceptance of products (around the world) developed in Australia. Australia is not know as a innovator and source of leading software – relative to the UK and USA.
Q. What are your thoughts on the future trends of your service and market segment you are in?
A. We believe the segments and customers we target will continue to require asset management systems and services. This is because of the increasing incidence of various government, regulatory and corporate governance standards which now impact on the need to have a robust asset management system in place.
Q. Do you have any advice for people who want to start their venture?
Thanks David for sharing your thoughts. Some of the points you have raised about innovation and IT industry are quite relevant. We are delighted to cover Smartpath and we look forward to hear from you on the progress of Smart path. All the best.
The sixth participant is Smartpath