Businessmodel of Huddle

Customer Segments

Huddle has a segmented market business model, with slight differences between its customer segments. Its customer groups are as follows:

• Businesses/Enterprises
• Accounting and Professional Services Firms
• Government and Public Sector Agencies ### Value Proposition

Huddle offers four primary value propositions: cost reduction, risk reduction, accessibility, and brand/status.

The company’s cloud-based platform lowers costs in a variety of ways. It eliminates the need for hardware to host systems, getting rid of upfront and maintenance costs. It also minimizes the need for internal resources to maintain collaboration software. Further, it reduces licensing expenses by offering a monthly subscription model.

The company’s platform lowers risk by enabling users to dictate who can access which files. This feature increases security for customers, which has made it particularly attractive to banks.

The company’s platform increases accessibility by offering seamless integration with other systems such as SalesForce, SharePoint, and Microsoft Office. Beyond those well-known brands, Huddle has partnered with other applications to facilitate integration, including Nelogin, Okta, and Centrify.

The company has built a strong brand as a result of its popularity. It is used by over 160,000 organizations, including major clients such as Panasonic Europe, KPMG, Procter & Gamble, Kia Motors, Keolis, National Grid, AKQa, Go-Ahead Group and Beats by Dre. Its customer base includes 80% of central UK government divisions, including the Department of Energy & Climate Change, the Ministry of Justice, and the Cabinet Office. Finally, Huddle has received many honors. These include recognition as 2013’s “Emerging Star of the Year” (UK Tech Awards) and 2013’s “Supplier of the Year” for Enterprise Software (Computer Weekly’s European User Awards).

Channels

Huddle’s main channel is its direct sales team, through which it acquires most of its customers. It also utilizes resellers and system integrators. The company promotes its offering through its website and social media pages.

Customer Relationships

Huddle’s customer relationship is primarily of a self-service nature. Customers utilize the service through the main platform while having limited interaction with employees. The company’s website includes a “Huddle Help” section with useful “how-to” articles and training webinars. There is also a “Resources” section featuring white papers, case studies, and industry reports. That said, there is also a strong personal assistance component in the form of phone and e-mail support and the option of paid on-site training and user workshops.

Key Activities

Huddle’s business model entails maintaining and updating its software platform for customers. The platform includes its website and mobile apps for iPhone, iPad, and Android.

Key Partners

Huddle maintains the following three partner programs:

Channel Partners – The company works with organizations such as resellers, system integrators, and telecommunications firms to help them integrate and distribute its software into their existing solutions and channels.

Technology Partners – The company works with developers and technology companies so they can use its API to develop innovative new tools and mash-ups.

Referral Partners – The company works with organizations (primarily resellers and independent software vendors) to promote its offering in their channels. Partners receive a commission for customers who make a purchase as a result of the referral.

Key Resources

Huddle’s main resource is its proprietary software platform, used by more than 160,000 customers.  It also depends on its human resources in the form of technology staff members for maintaining the platform, sales staffers for selling the solution, and customer service workers for providing support.  Lastly, as a start-up it has relied heavily on funding from outside parties, raising $89.2 million from seven investors as of December 2014.

Cost Structure

Huddle has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is likely customer support/operations, a fixed cost. Other major drivers are in the areas of administration and sales/marketing, also fixed costs.

Revenue Streams

Huddle has two revenue streams:

Subscription Revenues – The company charges monthly access fees for its platform

Service Revenues – The company offers professional services that enable companies to get the most out of their usage

Huddle offers the following pricing options:

Workgroup – Starts at 25 users and includes 100 GB storage with a 2 GB maximum file size and 25 Team Workspaces; charge is $20 per user per month

Enterprise – Starts at 100 users and includes 1 TB storage with a 10 GB maximum file size and unlimited Team Workspaces; charge is $40 per user per month

Accounting and Professional Services – Includes secure, cloud-based workspaces, client engagement portals, and ISO 27001 certified data centers; sales team must be contacted for pricing

Government and Public Sector – Includes U.S. or UK data sovereignty through ISO 27001 certified data centers, FedRamp ATO (U.S.), and Cyber Essentials Plus Certified (UK); sales team must be contacted for pricing