Businessmodel of Mimecast

Customer Segments

Mimecast provides a range of cloud security and risk management solutions to more than 24,900 customers in the corporate and commercial sectors. The Company’s products and services are designed specifically to assist corporations of all sizes – including small, medium and large businesses, and global conglomerates –mitigate the business disruption that e-mail failure or downtime causes and ensure that corporate communications are handled reliably and securely.

Mimecast serves clients across multiple sectors, including the financial services, banking, legal, and media sectors. The Company recently reported that it had secured several high-profile law firms as clients, namely SJ Berwin, Foot Anstey, Kingsley Napley, Weightmans and Russell Cooke. Mimecast is based in the UK, but serves an international client base with customers across 100 countries, including clients in the US, South Africa, and Australia.

Value Propositions

Mimecast provides value to its clients in the following ways:

• Its reputation and industry standing, with the Company established as the one of the most well-known and most respected providers of cloud security and email management services, as demonstrated by its ability to secure business from various high-profile clients;
• Its broad portfolio of products and solutions, with the Company offering a broad range of products and solutions relating to email management, including archiving, security, and email resiliency products;
• Its compatibility and functionality, with the Company’s products being fully compatible with popular email programs such as Microsoft Outlook, and enabling users to send large emails and archive documents even when their private server is down;
• Its technology and innovation, with the Company utilising a range of proprietary technologies in the development and implementation of its solutions, making its offerings unique within the email management sector; and
• Its industry expertise and experience, with the Company employing highly-trained technical personnel across its business, ensuring that products are reliable and that users receive adequate support, as well as a team of experienced industry executives. ### Channels

Mimecast operates a website at www.mimecast.com, through which it provides information on its various products, solutions, operating locations, partners, and executives.

While the Company details its offerings on its website, the Company does not operate an online sales channel. It does, however, allow customers to request custom quotes and demonstrations, and chat online with sales personnel in order to gain more information on its products. Active Mimecast users are able to log in to their email through the Company’s online portal at www.login.mimecast.com, through which they can access their usual email functionality.

Mimecast makes a significant portion of its sales through its in-house direct sales force, which is organised by geographic region. These sales personnel operate out of the Company’s network of sales and administrative offices in London, Boston, Chicago, Dallas, San Francisco, Johannesburg, Cape Town, Melbourne, Sydney, and Jersey.

The majority of Mimecast’s sales are made via a network of channel partners, notably its reseller network that is designed to meet the specific requirements of each of the Company’s target customer segments.

The Company’s large enterprise clients are served principally through leading systems integrators such as Hewlett Packard, Dimension Data and Avanade, while its small and mid-market customers are served through leading IT resellers such as Softcat, SHI, CDW and Softchoice.

Customer Relationships

Mimecast does not sell its products and solutions to clients on a self-service basis. The Company’s solutions, however, are accessible on a self-service basis, with users able to access their email accounts through the Mimecast portal without interacting with members of the Company’s sales and service personnel.

Much of Mimecast’s sales are made through its direct sales force, the members of which are able to offer personalised assistance and guidance regarding its products and solutions, ensuring that all of its customers are offered the most appropriate solutions for their individual circumstances. In this way, the Company seeks to establish longstanding relationships with its clients.

Mimecast provides ongoing support to its customers, who are able to contact dedicated support personnel over the phone, via email, or through an online contact form. Support personnel are able to provide personalised assistance with a range of technical issues. The Company also offers a range of online resources – such as guides and FAQs – that can be accessed by clients independently, and operates an online community portal where users can share ideas and collaborate on problems.

Additionally, Mimecast operates social media accounts with Facebook, Twitter, and YouTube, through which it is able to publish company updates and interact directly with clients.

Key Activities

Mimecast is a provider of cloud security and risk management services for corporate information, particularly offering email management products and solutions. The Company offers an extensive suite of cloud services that are designed to protect customers from a range of business and data security risks.

It also seeks to mitigate the business disruption that e-mail failure or downtime causes, and seeks to address compliance requirements through its archiving and storage services. Mimecast is based in the UK a serves a global client base across more than 100 countries. It maintains a network of regional offices across the UK, the US, South Africa, and Australia.

Key Partners

Mimecast works closely with a network of partner companies and organisations that support its core development and implementation activities. These partners can be organised broadly into the following categories:

• Supplier and Vendor Partners, comprising suppliers of services, technologies, and equipment that are utilised in the development and delivery of the Company’s various products and solutions;
• Channel and Distribution Partners, comprising the Company’s extensive reseller network, which includes a number of systems integrators, authorised independent software vendors, and sales agents that assist in extending the reach of the Company’s own in-house sales force;
• Managed Service Partners, comprising a range of service providers operating within the technology and software space, with which the Company collaborates in promoting its products and solutions;
• Cyber Resilience Partners, comprising a range of security, data protection and business continuity vendors that assist the Company in strengthening the resilience of its customers to threats and disruption of business; and
• Strategic and Alliance Partners, comprising a range of leading companies, primarily within the technology and software space, with which the Company collaborates on various joint projects. Mimecast lists a number of its partners on its website. This includes managed service partners Softcat, Softchoice, and Bytes Technology Group; and cyber resilience partners PhishMe, ZeroFox, and Archive360.

Key Resources

Mimecast’s key resources are its intellectual properties and proprietary technologies, its products and platforms, its IT and communications infrastructure, its sales and distribution channels, its partnerships, and its personnel.

Mimecast utilises a number of proprietary technologies in the development and implementation of its solutions. Searches of records published by the US Patent and Trademark Office identified a number of patent applications filed in the name of Mimecast, either as applicant or assignee, including applications entitled ‘Electronic message threat protection system for authorized users’, ‘Automatic translator identification’ and ‘Facilitating user communication about a common topic’.

Mimecast also leases a number of physical properties around the world that comprise its network of offices. This includes locations in the UK, the US, Australia, South Africa, and Jersey.

Cost Structure

Mimecast incurs costs in relation to the development of its technologies and software solutions, the maintenance of its IT and communication infrastructure, the procurement of professional and consulting services, the operation of its sales and distribution channels, the implementation of marketing and advertising campaigns, the management of its partnerships, and the retention of its personnel.

In 2016 Mimecast recorded total operating costs in the amount of $102.61 million. This included research and development costs in the amount of $17.66 million, sales and marketing costs in the amount of $65.19 million, and general and administrative costs in the amount of $19.76 million.

Revenue Streams

Mimecast generates revenue through the development and sale of email management and security solutions. The Company derives its revenue in the form of sales and subscription fees.

In 2016 Mimecast generate revenue for the year in the amount of $141.84 million, up on the $116.09 million recorded by the Company in 2015.