We’re witnessing the biggest Enterprise technology revolution since the Internet, and the vast majority of investors are missing the action.
In 2011, Marc Andreessen – the legendary venture capitalist – proclaimed that “software is eating the world.” Seven years later, it’s clear he was right.
Uber killed the the taxi industry. AirBnB now controls more rental inventory than any other hotel chain on Earth. Netflix dethroned Disney as the King of Media.
And, while the rise of digitization and the “Sharing Economy” is great for consumers – up until now it’s left the Enterprise virtually untouched.
That’s about the change in a very big way.
Upstart nDivision, Inc. (NDVN) is punching above their weight, and using state-of-the-art proprietary technology to disrupt the $226 billion Managed Service industry.
We might be looking at the “Uber” of Enterprise IT.
And, it’s all happening just as companies like IBM, Amazon, Google and Microsoft ramp up acquisitions in the sector to a fever pitch.
If you’re not already following NDVN – here are 5 reasons you need to pay attention:
- A $335 Billion Innovation Wave
- Meet The “Uber” of Enterprise IT
- The Noble Drilling Case Study
- Multi-Prong Expansion Strategy
- A Proven Team of Entrepreneurs
A $335 Billion Innovation Wave
Call it “Uberization” or the “Sharing Economy” – the name doesn’t matter. The fact is that a new wave of digitization is sweeping through nearly every industry on Earth.
The Brooking Institute estimates it will be worth $335 billion by 2025.
Companies like nDivision, Inc. (NDVN) – who are embracing this trend with state-of-the-art new technology – stand to be big winners.
Investors won’t have to wait long to see it play out.
We’re already seeing billions in investor value realized in real time. Take two of the most disruptive companies of the last decade: Uber and AirBnB.
They took underutilized assets, disrupted major established industries – and eventually achieved a combined pre-IPO valuation of roughly $103 billion.
Transport and hospitality are just the start. According to BCG Henderson, an estimated $23 billion in venture capital funding has poured into this market since 2010.
Most of that has landed in consumer focused startups like Grab, Lyft and Snapgoods.
But, just as B2C file sharing service Dropbox ($12.3b market cap) inspired the rise of their B2B competitor Box ($3.75b market cap) – that’s about to change.
The “Sharing Economy” is coming for the Enterprise.
Meet The “Uber” Of Enterprise IT
Investors have a message for the Fortune 500:
“Focus on your core competencies.”
Outsourcing of functions like legal, accounting and HR has been a trend for decades. As the digitization wave picks up – expect it to hit IT Departments next.
By harnessing this trend, nDivision, Inc. (NDVN) aims to be the “Uber” of Enterprise IT.
The problem is simple. Globalization has put enormous pressure on businesses to reduce costs, especially in “peripheral” divisions like information-technology.
Meanwhile, CIO’s at old economy stalwarts like Kelloggs and Coca-Cola are being asked to innovate on the level of their Silicon Valley counterparts.
With dwindling resources and growing expectations – IT Departments are in a bind.
That’s where nDivsion comes in.
The company is targeting the managed services industry, one that MarketsAndMarkets
expects to grow to nearly $260 Billion by 2022.
In plain English: they’re disrupting how IT is delivered.
First, they can supplement existing IT Staff with their Virtual Engineer as a Service (VEAAS) program. Think of it like Uber for IT tasks.
Next, they’ll automate and replace existing In House or Managed Service options with Autonomic Managed Services (AMS) technology.
It’s like self-driving cars for IT and software engineering.
The result is lower costs, predictable outcomes, and faster results. And, nDivision is going to have first mover advantage coming out of the gate.
The Noble Corporation Case Study
This is critical to point out: nDivision, Inc. (NDVN) isn’t a hypothetical service. They’re already deep in revenue, with real mid-cap Enterprise tier clients.
Take Noble Corporation (NYSE:NE) – a $1.4 billion offshore oil & gas drilling contractor that operates with Royal Dutch Shell, Statoil and Saudi Aramco.
Like many companies, they were looking to reduce IT costs.
They turned to nDivision to solve the problem.
The company replaced 19 of 25 IT operations and help desk staff. Noble was able to slash their staff costs by $2.3 million per year, while streamlining operations.
The service costs $950k per year for $1.35 million in annual savings.
Noble was able to achieve additional savings of $250k per year after 12 months, by consolidating and shrinking their IT infrastructure.
All told, they cut technology services costs by 70%.
The best part? Their IT incident ticket backlog collapsed from 1,500 to 750 in the first week with nDivision – so performance actually improved.
With results like those, now the industry is taking notice.
Now the company is moving to rapidly expand their client base.
They’re targeting both Midmarket ($100m-$500m in revenues) and Large enterprise ($500m-$5bn in revenues) clients with 200-1,000+ IT users.
nDivsion’s Multi-Prong Expansion Strategy
When you have first mover advantage, you must seize it. That’s precisely what nDivision, Inc. (NDVN) is doing with their aggressive growth strategy.
On DATE they finalized the acquisition of 58 Managed Services contracts from Gamwell Technologies for $1.2 million, spread over 3 years.
These contracts will add roughly $1 million per year of annual recurring revenue. With margins of 80% – they anticipate an $800k annual profit.
It could take the company to breakeven and positive cash flow.
Acquisitions aren’t their only strategy either.
Recently, nDivsion became one of only two Dell partners in the U.S. providing Managed IT and End User Help Desk services to its customers.
They are now Dell’s preferred partner for large deals.
The company can leverage Dell’s 8,000+ sales B2B reps to reach a massive potential Enterprise customer base – with minimal investment.
nDivision is also a Managed Services partner for NTT Data – a $7 billion company. And, they’re pursuing a partnership with UNISYS.
The company introduced its Sales Agent program in 2016.
Agents introduce nDivision to customers they have a trusted relationship with, helping sell their Managed Services and End User Help Desk services on commission.
The first deal closed in 2017 at $223k per year. With proof of concept already in the bag, the company anticipates scaling up this program in 2018 and beyond.
Finally, nDivision is also spinning up their internal salesforce.
Coupled with acquisitions, partnerships and their sales agent program – they’ll have the ability to onboard new clients significantly faster than the competition.
A Proven Team of Entrepreneurs
When you consider what nDivision, Inc. (NDVN) has already accomplished, its clear this company has what it takes to execute their growth plan.
But, if you still have any doubts – take a look at their incredible team.
Alan Hixon – Chief Executive Officer
He built an $80m IT services company with 500 employees from start-up, in five years, and was responsible for strategy, key partnerships, finance, sales & marketing.
Mike Beavers – Chief Commercial Officer
He built the delivery capability for a Managed Services Provider that grew to $40m in 2.5 years, and was responsible driving recurring revenue growth.
Justin Roby – Chief Technology Officer
He is one of the most certified consultants in the U.S., and owner of an IT business. He’s Responsible for driving efficiency gains and competitive advantage.
Justin is also the brain behind nDivision’s state-of-the-art technology.
Brad Wiggins – Chief Administrative Officer
Brad built an IT reseller business from the ground up. He’s responsible for corporate governance, and is set to take a leading role in acquisitions.
With this team driving the action, the prospects for NDVN are incredibly bright. Likewise, the opportunity for investors is clear. But, there’s a clock on it.
Acquisition Activity Is Heating Up In
The $226 Billion Managed Services Industry
The technology industry, and especially the segment that nDivision (NDVN) is in right
now is increasingly ripe for mergers and acquisitions.
IBM, has made more than 160 acquisitions since 2000 alone, from database services to cloud management, cybersecurity, big data, and networking solutions.
In 2017 Amazon acquired a record ten startups including Harvest.ai, Thinkbox Software, Do.com, Souq.com, GameSparks, Graphiq, Wing.ae, and Body Labs.
Most of those acquisitions were to support Amazon Web Services (AWS) growth.
Google recently completed a $50 million acquisition of Xively to incorporate their LogMeIn division into their broader Google Cloud Platform team.
This sector is about to get extraordinarily heated.
And, with the potential to become the “Uber” of Managed IT Services – nDivision (NDVN) could soon wind up as trophy buyout target.
For savvy investors, this is one you’ll definitely want to watch.
Disclaimer: Neither Midam Ventures, LLC, owner of TechStockInsider.com, nor its affiliates have been compensated for any marketing period to publicly disseminate information about nDivision, Inc. (NDVN) & owns zero shares. An affiliate of Midam Ventures, LLC, JSG Communications LLC expects to be compensated for a marketing period to publicly disseminate information about nDivision, Inc. (NDVN) & owns zero shares. We will update this disclaimer at that time.